CD Ladder Calculator
Use this calculator to examine the benefits of investing in a series of Certificates of Deposits with different maturities, also called a CD Ladder.
How the cd ladder calculator works
It splits your money into equal rungs invested in CDs of one, two, three and more years, with longer rungs earning higher rates. One CD matures each year for liquidity, while the longer rungs capture better yields. The calculator prices each rung and the blended result.
Worked example: with total amount to ladder of $25,000, number of rungs (years) of 5 and rate on the 1-year rung of 4.00%, the cd ladder calculator shows total value at full maturity of $28,625.
- Per-rung amount
- $5,000
- Average rate
- 4.40%
- Total interest
- $3,625
- Longest rung rate
- 4.80%
The formula
Each rung = total ÷ rungs, at a rate of base + (year − 1) × step, maturing at amount × (1 + rate)^years. The ladder’s value is the sum across all rungs.
Results are estimates for educational purposes and are not financial advice. Confirm exact figures with your lender, plan administrator or advisor.
Questions about the cd ladder calculator
What is a CD ladder?
A strategy of buying several CDs with staggered maturities so one comes due each year. It blends the higher rates of long CDs with the regular access of short ones.
Why ladder instead of one long CD?
A ladder keeps part of your money accessible each year and lets you reinvest at current rates as each rung matures — reducing the risk of locking everything in at a low rate.
What happens when a rung matures?
You can take the cash or reinvest it into a new long-term rung at the top of the ladder, keeping the staggered structure rolling.
Is the CD Ladder Calculator free to use?
Yes. Every calculator on FinCalculators is completely free, with no sign-up, login or paywall. You can run as many scenarios as you like.