CD Ladder Calculator

Maximize your interest rates while maintaining liquidity. Calculate the returns and blended yield of a Certificate of Deposit ladder.

Ladder Setup

Will be divided equally into 5 "rungs" of $4000.00 each.

Current CD Rates (APY)

1-Year CD
%
2-Year CD
%
3-Year CD
%
4-Year CD
%
5-Year CD
%

Ladder Performance

Blended Average APY
4.52%

The average yield across your entire $20,000 portfolio.

1st Year Interest
$904.00
Total Lifetime Interest
$2744.03

Maturity Schedule

Year 1
5.1% APY
+$204.00
Matures: $4204.00
Year 2
4.8% APY
+$393.22
Matures: $4393.22
Year 3
4.5% APY
+$564.66
Matures: $4564.66
Year 4
4.2% APY
+$715.53
Matures: $4715.53
Year 5
4% APY
+$866.61
Matures: $4866.61

What is a CD Ladder?

A Certificate of Deposit (CD) ladder is an investment strategy where you divide a sum of money into equal amounts and invest them in CDs with different maturity dates.

The Problem with Single CDs

Normally, if you have $10,000, you have to choose between a 1-year CD (lower rate, fast access) and a 5-year CD (higher rate, locked up for a long time). If you lock all $10k in a 5-year CD and suddenly need the money for an emergency, you will pay harsh early withdrawal penalties.

How the Ladder Solves This

Instead of locking all $10,000 in one CD, you build a ladder:

  • $2,000 in a 1-year CD
  • $2,000 in a 2-year CD
  • $2,000 in a 3-year CD
  • $2,000 in a 4-year CD
  • $2,000 in a 5-year CD

Now, every single year, one of your CDs matures. You now have liquid cash available every year. If you don't need the cash, you simply take the matured CD and reinvest it into a new 5-year CD. Eventually, you have a rolling cycle of 5-year CDs (earning the highest rates), but one is maturing every single year.

Frequently Asked Questions

What is the CD Ladder Calculator?

The CD Ladder Calculator is a free online tool designed to help you calculate the blended apy and interest returns of a certificate of deposit ladder.

How much does the CD Ladder Calculator cost?

Our CD Ladder Calculator is 100% free to use. We do not require any signups, subscriptions, or credit cards.

Is my data safe when using this tool?

Yes. All calculations are performed locally in your web browser. We do not store or save your financial data or inputs on our servers.