CD Ladder Calculator
Plan your CD ladder strategy. Automatically distribute your investment across multiple CD terms to balance liquidity and maximize returns.
Ladder Details
Total ladder span: 60 months
CD Ladder Breakdown
| Rung | Term | Principal | Maturity Value | Interest |
|---|---|---|---|---|
| 1 | 1 year | $10,000.00 | $10,512.67 | $512.67 |
| 2 | 2 years | $10,000.00 | $11,051.63 | $1,051.63 |
| 3 | 3 years | $10,000.00 | $11,618.22 | $1,618.22 |
| 4 | 4 years | $10,000.00 | $12,213.86 | $2,213.86 |
| 5 | 5 years | $10,000.00 | $12,840.03 | $2,840.03 |
| Total | $50,000.00 | $58,236.43 | $8,236.43 | |
Liquidity Timeline
Shows when funds become available as CDs mature each year.
Ladder vs Single CD Comparison
Note: Ladder provides liquidity advantages while maintaining competitive returns.
What is a CD Ladder?
A CD ladder is an investment strategy where you divide your money across multiple certificates of deposit with different maturity dates. This approach balances liquidity with competitive returns.
Our CD ladder calculator helps you plan your ladder strategy, showing how to distribute your investment and when funds become available.
Benefits of CD Laddering
- Regular Liquidity: Funds become available annually as CDs mature
- Balanced Returns: Combines competitive rates with flexibility
- Interest Rate Protection: Reduces risk from rate changes
- Reinvestment Options: Can reinvest at potentially higher rates
- Cash Flow Management: Predictable access to funds
How to Build a CD Ladder
Building a CD ladder is straightforward:
- Decide on total investment amount
- Choose number of ladder rungs (typically 3-5 years)
- Divide investment equally across rungs
- Invest in CDs with 1-year, 2-year, 3-year, etc. terms
- As each CD matures, reinvest or use funds
Our CD ladder calculator automates this process and shows you the exact breakdown.
CD Ladder Strategies (3, 4, 5-Year)
3-Year Ladder
- More frequent access
- Lower average rates
- Good for short-term goals
4-Year Ladder
- Balanced approach
- Moderate rates
- Popular choice
5-Year Ladder
- Highest rates
- Maximum returns
- Best for long-term
When to Use CD Laddering
CD laddering is ideal when you:
- Want competitive returns but need periodic access to funds
- Prefer predictable cash flow
- Want to reduce interest rate risk
- Have a large sum to invest ($25,000+)
- Are planning for specific future expenses
Use our CD ladder calculator to see if laddering fits your financial goals.