CD Ladder Calculator

The CD Ladder Calculator helps you build a certificate of deposit (CD) ladder — a savings strategy that spreads your money across several CDs with staggered maturity dates. Instead of locking everything into a single CD, you split it into rungs that mature one after another. This tool shows your blended APY, draws a visual staircase diagram of every rung, lays out a full liquidity schedule of maturity dates, and runs a rollover simulation that reveals the higher steady-state yield a ladder reaches over time.

What is a CD Ladder?

A CD ladder is a portfolio of certificates of deposit with different maturity dates, arranged like the rungs of a ladder. A classic example divides your money into five equal parts invested in one-year, two-year, three-year, four-year, and five-year CDs. Each year one rung matures, giving you a regular flow of accessible cash. The strategy blends the higher yields of long-term CDs with the flexibility of short-term ones, and it spreads out your interest-rate risk so you are never fully locked in at a single rate.

CD Ladder Formula

Building a ladder takes three short steps: split the deposit, grow each rung to its own maturity, and average the rates into a blended yield.

Because every rung holds the same amount, the blended APY is simply the average of your rung rates — a single yield that lands between your shortest and longest CD.

Why Build a CD Ladder?

How a Rollover Reaches the Steady-State Yield

The clever part of laddering is what happens over time. When the shortest rung matures, you reinvest that cash into a brand-new CD at the longest term on your ladder. Repeat this each time a rung matures and, after the ladder has cycled through once, every rung is a longest-term CD earning the top rate — yet a rung still matures at every interval. Your yield climbs from the initial blended APY up to the top rung's APY, the steady-state yield, without giving up your regular access to cash.

CD Ladder vs a Single CD

How to Use This Calculator

1. Enter your deposit: Choose a currency and type the total amount you want to invest across the ladder.
2. Choose rungs and spacing: Pick how many rungs (2 to 10) the ladder has and how far apart their maturities fall, such as 12 months.
3. Set each rung's APY: Enter the annual percentage yield for each term, or keep the realistic sample rates that load automatically.
4. Review the results: Read your blended APY, explore the staircase diagram and liquidity schedule, and see how the rollover lifts you to the steady-state yield.

Frequently Asked Questions

What is a CD ladder?

A CD ladder is a savings strategy that splits your money across several certificates of deposit with staggered maturity dates. Instead of locking everything into one CD, you spread it across rungs that mature at different times, so part of your money becomes available on a regular schedule while the rest keeps earning higher long-term rates.

How does a CD ladder work?

You divide your deposit into equal parts and buy CDs of increasing terms, for example one, two, three, four, and five years. Each year a rung matures and gives you access to cash. You then reinvest that cash into a new longest-term CD, keeping the ladder going while every rung gradually earns the top rate.

What is the blended APY of a CD ladder?

The blended APY is the weighted average yield across all the rungs in your ladder. Because shorter CDs usually pay less than longer ones, the blended APY sits between the shortest and longest rate. It represents the overall return of the ladder as a single number.

Why ladder CDs instead of buying one CD?

Laddering balances yield and access. A single short CD keeps your money liquid but pays little, while a single long CD pays more but locks everything away. A ladder captures most of the long-term yield yet still frees up a portion of your money on a regular schedule, and it reduces the risk of locking in at a bad rate.

What is the steady-state yield of a ladder?

When you keep reinvesting each maturing rung into a new longest-term CD, the ladder cycles through once and then every rung earns the top rung's rate. This higher rate is the steady-state yield. You reach the best long-term rate while still having a rung mature at regular intervals.

Are CDs and CD ladders safe?

Certificates of deposit are low-risk savings products and, in many countries, are insured up to legal limits, for example by the FDIC in the United States. The main trade-offs are early-withdrawal penalties and the chance that rates rise after you lock in. Laddering reduces the second risk by reinvesting regularly.

Additional Resources

• Certificate of Deposit - Wikipedia
• Annual Percentage Yield - Wikipedia