CD Ladder Calculator
Build a CD ladder strategy that balances higher yields with regular access to your money. See a visual timeline of maturities and projected earnings.
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rungs
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Reinvest at Maturity
Simulate rolling ladder over multiple years
How a 5-Rung Ladder Works
- 1Split $5,000 across 5 CDs (1yr, 2yr, ... 5yr)
- 2Each year, one CD matures
- 3Reinvest matured CDs at the 5-year rate
- 4After 5 years, all CDs earn the top rate — one matures every year
Enter your investment details to build a CD ladder.
Frequently Asked Questions
What is a CD ladder?
A CD ladder is a strategy where you split your money across multiple CDs with staggered maturity dates (e.g., 1, 2, 3, 4, and 5 years). As each CD matures, you reinvest at the longest term. This gives you regular access to funds while capturing higher long-term rates.
How many rungs should my CD ladder have?
The most common ladder has 5 rungs (1 through 5 years), but 3-rung and 10-rung ladders are also popular. More rungs mean more frequent liquidity but smaller individual CDs. Choose based on how often you want access to your funds.
Should I use equal or unequal allocations?
Equal allocation is the simplest approach and works well for most savers. Unequal allocation (e.g., more in longer-term CDs) can maximize yield if you're confident rates will stay stable, but reduces your short-term liquidity.
What happens when a CD in my ladder matures?
When a CD matures, you reinvest the principal plus interest into a new CD at the longest term in your ladder. For example, in a 5-year ladder, when your 1-year CD matures, you open a new 5-year CD. This way, you always have CDs earning the highest available long-term rate.
Is a CD ladder better than a single long-term CD?
A CD ladder offers more flexibility — you get regular access to funds and can adapt to rate changes. A single long-term CD may offer a slightly higher rate but locks up all your money. A ladder is usually the better choice unless you're certain you won't need the funds for the full term.