CD Ladder Calculator
See what a certificate of deposit ladder earns over a year.
Total invested
Estimated annual interest
Per-rung payout at maturity
How to use this calculator
Enter how much goes into each CD, how many CDs (rungs), the term of each and the APY. The estimate assumes each rung earns simple interest over its term and is reinvested as it matures.
Worked example
Put $2,000 into each of five 12-month CDs at a 4.5% APY and you invest $10,000 total. As each rung matures every few months you can renew it for another 12 months, so money is always becoming available while the whole ladder earns the longer-term rate.
What the result means
The tool totals what you invest across the ladder's rungs. The strategy's value is liquidity plus yield: CDs pay more than savings accounts, and the ladder means one rung matures on a rolling basis instead of locking everything away at once.
How a ladder works
- Split your money across CDs with staggered maturities (3, 6, 9, 12 months and so on).
- When a rung matures, either spend it or roll it into a new long-term CD.
- You keep rolling access to a portion of the money while all of it earns the longer rate.
Frequently asked questions
What if rates rise while I ladder?
A ladder handles that well - a rung matures regularly, so you can reinvest at the new higher rate sooner than with one giant CD.
CD rates change, so a ladder is also a rate bet: if rates rise you are glad money keeps maturing; if they fall, the ladder locks in today's higher rates longer than a savings account would. Shop rates across banks and credit unions before each renewal to keep the ladder working.