CD Ladder Calculator
Multi-Rung Certificate of Deposit Strategy
Build a certificate of deposit ladder with 2 to 6 rungs, each with its own APY and term. See a complete maturity schedule, rolling reinvestment projections, total interest earned per rung, and how the ladder compares against putting everything in one CD.
Total to ladder across all CDs
Rate when rolling maturing CDs
CD Rungs (3 of 6)
What Is the CD Ladder Calculator?
A CD ladder staggers your money across multiple certificates of deposit with different maturity dates. As each CD matures, you reinvest it at whatever rate is current — which gives you the benefits of higher long-term rates while maintaining predictable liquidity at regular intervals. It is the primary strategy for squeezing maximum yield from FDIC-insured savings without locking all your money away for years.
- ›Liquidity at regular intervals. If you build a 5-rung ladder with terms of 1–5 years, one CD matures every year. You can reinvest or access that capital without penalty.
- ›Capture rising rates. If interest rates rise, your shorter-term CDs mature quickly and can be reinvested at the higher rate — unlike a single long-term CD that locks you in.
- ›Reduce reinvestment risk. If rates fall, only the portion maturing at that time is reinvested at lower rates; the rest continues earning the originally locked-in higher rate.
- ›FDIC protection. Up to $250,000 per depositor per institution. Spreading across institutions can increase coverage. The laddering strategy is independent of how many banks you use.
CD Ladder Calculator Formula and Method
CD Maturity Value (Daily Compounding)
FV = Principal × (1 + APY / 365)^(days)
where days = (termMonths / 12) × 365
Blended APY (weighted average)
Blended APY = Σ(APY_i × Principal_i) / Total Principal
Interest Earned per Rung
Interest = Maturity Value − Principal
How to Use
- 1
Enter the total amount to invest across the ladder.
- 2
Choose the number of rungs (2–6) and assign a term to each.
- 3
Enter the APY for each rung from current bank or brokerage quotes.
- 4
Toggle off equal splitting to set custom amounts if rungs are unequal.
- 5
Click Build CD Ladder to see maturity schedule and total interest earned.
- 6
Compare total yield against putting everything in a single CD at blended APY.
CD Ladder Calculator Example
Example: 3-rung ladder with $30,000
CD 1: $10,000 @ 4.50% APY, 12 months → matures in 1 year
CD 2: $10,000 @ 4.80% APY, 24 months → matures in 2 years
CD 3: $10,000 @ 5.00% APY, 36 months → matures in 3 years
CD 1 interest: $10,000 × ((1 + 0.045/365)^365 − 1) = $459.07
CD 2 interest: $10,000 × ((1 + 0.048/365)^730 − 1) = $984.79
CD 3 interest: $10,000 × ((1 + 0.050/365)^1095 − 1) = $1,618.22
Total interest: $3,062 | Blended APY: 4.77%
Year 1 liquidity: $10,459 becomes available for reinvestment or use
Understanding CD Ladder
Classic 5-Rung Ladder: The Most Common Structure
The traditional 5-rung CD ladder divides savings equally across 1-year, 2-year, 3-year, 4-year, and 5-year CDs. Each year, the shortest-term CD matures and is reinvested into a new 5-year CD at whatever rate is then available. After 5 years, every CD is a 5-year CD maturing at annual intervals — capturing long-term rates with annual liquidity.
Short-Term Ladder for Near-Term Goals
If you have a known expense in 1–2 years (down payment, tuition), a short-rung ladder across 3-month, 6-month, and 12-month CDs keeps the money working at higher rates than a savings account while giving quarterly or semi-annual access to a portion of the funds. This is the approach for money you cannot afford to lock away for years.
- ›Match rungs to your spending timeline. Money needed in 6 months goes in a 6-month CD; money not needed for 3 years goes in a 3-year CD.
- ›Compare brokered CDs vs bank CDs. Brokered CDs sold through brokerages (Fidelity, Schwab) often have better rates and can be sold on a secondary market before maturity — though at market value, not par.
- ›Callable CDs carry issuer risk. Some CDs allow the bank to redeem them early if rates fall. Avoid callable CDs in a laddering strategy — they defeat the purpose of locking in a rate.
Frequently Asked Questions
How does a CD ladder compare to a high-yield savings account?
HYSA: fully liquid, rate changes with market. CD: locked rate, penalty for early withdrawal.
Laddering gives you the rate-lock benefit while maintaining annual (or more frequent) liquidity.
What happens if I need to withdraw before a CD matures?
Typical penalties: 90 days interest (short-term CDs), 6–12 months interest (long-term). No-penalty CDs exist at slightly lower rates.
Should I spread my CD ladder across multiple banks?
If total savings exceed $250,000, use multiple banks for full FDIC coverage. Multiple banks also let you shop the best rate at each term independently.
How should I handle the reinvestment rate assumption?
Use the current short-term CD rate as a conservative reinvestment assumption. If the ladder math works at that rate, rising rates only make it better.
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