CalcHub

CD Ladder Calculator

A CD laddersplits your savings across several certificates of deposit with staggered maturity dates. It’s a clever way to capture the higher rates of longer CDs while still having money come available regularly — instead of locking everything away for years. This calculator builds the ladder and shows what each rung matures to.

CDs with 1, 2, … N-year terms (1–10).

Assumes the same APY across rungs.

RungDepositValue at maturity
1 yr$5,000$5,225
2 yr$5,000$5,460
3 yr$5,000$5,706
4 yr$5,000$5,963
5 yr$5,000$6,231
Total at full maturity$28,584
Per-rung deposit$5,000
Total interest earned$3,584

How this calculator works

We split your total evenly into N rungs and assign each a term of 1, 2, … N years. Each rung compounds at the APY for its term:

rung value = (total ÷ N) × (1 + APY)^term

The total at full maturity sums every rung. In a real ladder, as each short CD matures you reinvest it into a new longest-term CD — so after the ladder is established, one rung matures every year while the rest keep earning the higher long-term rate.

Why ladder instead of one big CD?

  • Liquidity:a portion matures regularly, so your money isn’t fully locked up.
  • Rate capture: most of the ladder earns the higher long-term APY rather than low short-term rates.
  • Rate hedging:you reinvest a rung each year, so you aren’t betting everything on today’s rate — helpful when rates are uncertain.

This calculator assumes the same APY across rungs for clarity; in reality longer terms often pay slightly more. For a single CD, use the CD calculator.

Frequently asked questions

What is a CD ladder?
It's a strategy of buying several CDs with different maturity dates (e.g. 1 through 5 years) instead of one. As each matures you reinvest it at the longest term, so you always have a CD coming due soon while most of your money earns the higher long-term rate.
Why not just buy one long CD?
A single long CD locks up all your money and bets entirely on today's rate. A ladder keeps part of your savings accessible each year and spreads out reinvestment, reducing the risk of locking in at a bad time.
Does this assume the same rate for every rung?
Yes, for simplicity. In practice longer CDs often pay a bit more, which makes laddering even more attractive. Adjust the APY to model your offered rates.