CD Ladder Calculator
Plan a certificate of deposit ladder strategy.
Results update as you type.
How it works
A certificate of deposit ladder is a savings strategy that spreads your money across several CDs with staggered maturity dates, and this calculator helps you plan one. You enter the total amount you want to invest, the number of rungs, or individual CDs, and the average APY you expect, and it returns how much goes into each CD and an estimate of your annual interest. The idea behind laddering is to balance the higher rates of long-term CDs against the flexibility of having money come due regularly. Instead of locking your entire sum into one long CD, you divide it into equal portions with maturities spaced a year apart, for example one, two, three, four, and five years. Each year, as the shortest CD matures, you reinvest it into a new long-term CD at the top of the ladder, so you always have a CD maturing soon for liquidity while most of your money earns the higher long-term rates. This reduces the risk of locking everything in before rates rise and smooths out interest rate changes over time. The equal split per rung and the estimated annual interest give you a quick sense of the strategy's scale and earnings. Enter your total amount, number of rungs, and APY to plan your CD ladder.
Per rung = total / rungs; Annual interest ≈ total × APY
A CD ladder splits your total evenly across a chosen number of certificates, so each rung holds the total divided by the number of rungs. The estimated annual interest is the total amount times the average APY, approximating the yearly earnings once the ladder is fully built and each CD is earning at the ladder's average rate.
Source:Personal finance
We review all our tools from time to time to ensure accuracy.
Worked example
How to use this calculator
- 1
Enter your values
Enter total to invest, number of rungs (cds) and average apy.
- 2
Adjust the options
Fine-tune any options to match your situation.
- 3
Read your result
Amount per CD updates instantly as you type — no button to press.
Frequently asked questions
What is a CD ladder?
A CD ladder is a strategy of dividing your savings across several certificates of deposit with staggered maturity dates. As each CD matures, you reinvest it into a new long-term CD. This gives you regular access to a portion of your money while most of it earns the higher rates that longer-term CDs typically offer.
How does a CD ladder work?
You split your total evenly into several CDs with maturities spaced apart, such as one through five years. Each year, the shortest CD matures, and you roll it into a new longest-term CD at the top of the ladder. Over time, every rung ends up earning the top rate while one matures each year for liquidity.
Why build a CD ladder instead of one CD?
A single long CD locks all your money away and risks missing higher rates if they rise. A ladder keeps part of your money accessible each year and lets you reinvest at prevailing rates, reducing interest-rate risk. It balances the higher yields of long CDs with the liquidity and flexibility of shorter ones.
How much interest will a CD ladder earn?
Once fully built, a ladder earns roughly the total amount times the average APY across its rungs each year, which this calculator estimates. Actual earnings depend on the specific rates of each CD and how rates change as you reinvest. Early on, before the ladder matures, average rates may be lower than the target.
How many rungs should a CD ladder have?
Common ladders use four or five rungs spanning one to five years, but the right number depends on your goals and how often you want access to funds. More rungs mean more frequent maturities and smoother rate averaging but smaller amounts per CD. Choose a structure that matches your liquidity needs and the available CD terms.