Can I set different rates for each rung?

Not in this simplified version. It uses a single blended annual rate for all rungs. To model varying rates by term, you can approximate with separate runs or export results and adjust them in a spreadsheet using the specific bank rates you’re seeing.

Does the calculator handle reinvesting maturing CDs into new rungs?

No. It shows a single ladder build from today through your longest term. Many real‑world strategies roll each maturing CD into a new long‑term rung to maintain the ladder; you can approximate that by rerunning the calculator as CDs mature.

Are early withdrawal penalties included?

No. The model assumes you hold every CD to maturity without penalties. In reality, cashing out early typically triggers penalties that reduce effective yield. Always review penalty rules before committing funds you may need early.

Is this advice on which CDs to buy?

No. It’s a planning tool to help you understand how a CD ladder could behave mathematically. Actual CD selection should consider FDIC/NCUA insurance limits, issuer risk, rate environments, and your broader financial plan.

finance calculator

CD Ladder Calculator

Split a deposit across multiple CD rungs to see each maturity amount and the total maturity value for the ladder.

Results

Rungs: 5
Total maturity value: $11,291
Average term (months): 12.00

How to use this calculator

Enter the total dollar amount you want to invest into CDs.
Choose how many rungs you want in the ladder (e.g., 3, 4, 5, or more CDs). More rungs mean more frequent maturities and smoother liquidity.
Set the annual interest rate and how often interest compounds (monthly, quarterly, annually, etc.) based on typical CD offerings you’re considering.
Enter the longest term (in months) you want in the ladder—this defines the furthest maturity date; shorter rungs are spaced between now and that longest term.
Review the table of rungs with deposit amounts, terms, and maturity values, plus the total maturity value and the average term length.
Experiment with different ladder lengths, terms, and rates to see how they change cash flow timing and total interest earned.

Inputs explained

Total to invest: The total amount of money you plan to allocate to your CD ladder. This will be split evenly across the number of rungs you choose unless you manually build a custom ladder outside this tool.
Number of rungs: How many individual CDs you want in your ladder. Each rung represents one CD with its own term and maturity date. More rungs generally mean more frequent access to maturing cash.
Annual interest rate (%): The nominal annual percentage rate paid on the CDs. Use a rate that reflects what banks or credit unions are currently offering for the terms you’re modeling.
Compounding per year: How often interest is credited to the CD balance each year. Common values: 1 for annual, 4 for quarterly, 12 for monthly, 365 for daily. The more frequent the compounding, the slightly higher the effective yield.
Longest term (months): The maximum length of the ladder in months. The tool spaces rung terms evenly from the shortest rung up to this longest term (for example, a 5‑rung ladder with a 60‑month span approximates maturities around 12, 24, 36, 48, and 60 months).

How it works

You choose a total amount to invest, how many rungs you want in the ladder, the annual interest rate, compounding frequency, and the longest CD term in months.

We divide your total deposit evenly across the number of rungs so that each CD starts with the same principal amount.

We then space rung terms evenly from the shortest rung up to your chosen longest term (for example, a 5‑rung ladder up to 60 months might create rungs around 12, 24, 36, 48, and 60 months).

For each rung, we apply standard compound interest math using your annual rate and compounding frequency to compute its maturity value.

Finally, we sum the maturity values of all rungs to show the total maturity value of the ladder and compute the average term in months as a quick gauge of overall duration and interest rate exposure.

Formula

Each rung uses standard compound interest formulas:\n\n1. Per‑rung principal = Total amount ÷ Number of rungs.\n2. Term (years) for rung i = Rung months ÷ 12.\n3. Maturity value = Principal × (1 + r/n)^(n×t), where r is annual rate, n is compounding per year, and t is years.\n4. Total maturity value = Sum of all rung maturity values.\n5. Average term (months) = Average of all rung month terms.

When to use it

Planning a CD ladder that balances liquidity (regular maturities) with higher yields on longer‑term CDs.
Comparing different ladder structures—fewer, longer rungs versus more rungs with more frequent maturities—to see how they affect total interest and cash‑flow timing.
Helping conservative investors visualize how spreading one deposit across multiple CDs can smooth reinvestment and reduce timing risk.
Estimating how much your ladder might grow over a multi‑year period when you hold each CD to maturity at a given rate.

Tips & cautions

Use realistic rates for each rung when you build a real‑world ladder—longer rungs often have different rates than shorter ones. This tool uses one blended rate for simplicity, so treat it as an approximation.
If you want more control over rung amounts, you can manually split your total into different deposits and run separate calculations, or export the rungs table and tweak it in a spreadsheet.
Consider how you’ll reinvest maturing CDs—many ladder strategies involve rolling each maturity into a new long‑term rung to maintain the ladder once it’s built.
Always check early withdrawal penalties for each bank or credit union; this calculator assumes you hold every CD to maturity without penalties.
Evenly splits deposits and terms and uses a single rate for all rungs; it does not model different rates by term, step‑up CDs, or promotional teaser rates.
Does not model reinvestment of maturing CDs beyond the initial ladder period or changes in interest rates over time.
Ignores taxes, early withdrawal penalties, FDIC/NCUA insurance limits, and account‑specific terms.
It’s a planning and visualization tool only; actual CD products, rates, and terms will differ by institution and over time.

Worked examples

Example 1: 5‑rung ladder to 60 months

Total to invest = $10,000; rungs = 5; annual rate = 4%; compounding = 12; longest term = 60 months.
Each rung gets $2,000 (10,000 ÷ 5).
Rung terms are spaced roughly at 12, 24, 36, 48, and 60 months (exact spacing depends on the internal even‑spacing logic).
Each rung compounds at 4% with monthly compounding for its term; the calculator shows each maturity value and the summed total maturity.

Example 2: Shorter 3‑rung cash ladder

Total to invest = $6,000; rungs = 3; annual rate = 3.5%; compounding = 12; longest term = 18 months.
Each rung gets $2,000; approximate terms might be 6, 12, and 18 months.
The ladder gives you access to maturing cash every 6 months while still earning more than a single short‑term CD.

Example 3: Comparing fewer vs more rungs

Run a scenario with 4 rungs over 48 months, then another with 8 rungs over the same 48 months at the same rate.
With 4 rungs, you’ll see maturities roughly every 12 months; with 8 rungs, maturities are roughly every 6 months.
Total maturity values may be similar, but cash‑flow timing and reinvestment opportunities differ.

Deep dive

Use this CD ladder calculator to split a single deposit across multiple CD rungs and see each maturity value plus the total ladder value.

Enter your total deposit, number of rungs, interest rate, compounding frequency, and ladder length to visualize how a CD ladder grows over time.

Ideal for savers who want to balance liquidity and yield by staggering CD maturities instead of locking everything into one term.

FAQs

Can I set different rates for each rung?: Not in this simplified version. It uses a single blended annual rate for all rungs. To model varying rates by term, you can approximate with separate runs or export results and adjust them in a spreadsheet using the specific bank rates you’re seeing.
Does the calculator handle reinvesting maturing CDs into new rungs?: No. It shows a single ladder build from today through your longest term. Many real‑world strategies roll each maturing CD into a new long‑term rung to maintain the ladder; you can approximate that by rerunning the calculator as CDs mature.
Are early withdrawal penalties included?: No. The model assumes you hold every CD to maturity without penalties. In reality, cashing out early typically triggers penalties that reduce effective yield. Always review penalty rules before committing funds you may need early.
Is this advice on which CDs to buy?: No. It’s a planning tool to help you understand how a CD ladder could behave mathematically. Actual CD selection should consider FDIC/NCUA insurance limits, issuer risk, rate environments, and your broader financial plan.

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This CD ladder calculator uses simplified compound interest assumptions to illustrate how evenly split CD rungs can grow over time. It does not account for varying rates by term, early withdrawal penalties, taxes, or changes in interest rates, and it is not investment, tax, or financial advice. Always compare real CD offers, read account terms, and consult a qualified financial professional before committing funds to a ladder strategy.