CD Ladder Calculator

A strategy that splits money across CDs maturing at staggered dates (rungs). As each matures you reinvest at the longest term, balancing liquidity and yield.

A ladder gives regular access to part of your cash without early-withdrawal penalties, while still capturing higher long-term rates on most of the balance.

It builds a per-rung schedule showing each rung's principal, years to maturity, and interest earned, then reports the blended yield across all rungs and the cumulative interest earned over the full ladder horizon.

In a rising-rate environment a ladder lets you reinvest maturing rungs at higher rates sooner; if rates fall, your longer rungs keep their higher yields.

Because the shorter rungs are invested for less time and therefore earn less interest. If 20% of your money is invested for only 1 year while the rest is at 5 years, the dollar-weighted average works out to a yield below the 5-year APY applied to the whole balance.

It depends on the number of rungs and the bank's minimum deposit. If a bank requires $1,000 per CD and you want 5 rungs, you need at least $5,000 in total. Some institutions accept smaller amounts, so check the requirements before planning the ladder.

It depends on the rate environment. When CD rates beat HYSA rates (common in a normal yield curve), the ladder earns more. A HYSA offers greater flexibility. A blend of both, with an emergency fund in a HYSA and long-term savings in a CD ladder, is a balanced approach.