CD Ladder Calculator
See whether a CD ladder could meet a monthly income goal. Estimate interest paid each month, compare it with maturing principal, then try a traditional yearly ladder. Every rate is an input you can change.
Maintained by TheFinanceSection · Methods and corrections
CD cash-flow studio
Know when the money arrives.
Monthly interest and maturing principal are different kinds of cash flow. Model the one you actually need.
Estimated monthly interest
$491
If the full balance stays invested and interest is paid out monthly
Balance for your goal
$152,731
$500 a month at the illustrative APY
Compared with your goal
-$9
Estimated amount below goal each month
First-year maturity map
When would principal come back?
Your original deposit, separate from interest.
1
$12,500
2
$12,500
3
$12,500
4
$12,500
5
$12,500
6
$12,500
7
$12,500
8
$12,500
9
$12,500
10
$12,500
11
$12,500
12
$12,500
Month numbers count from the day you open the CDs. Equal deposits and the same APY across all terms are illustrations; actual terms and rates vary. Reinvesting a maturity keeps principal working. Spending it reduces future interest.
The monthly estimate converts APY to an equivalent monthly rate: balance × ((1 + APY)1/12 − 1). Banks may calculate and pay interest differently. Confirm the CD's payout schedule, quoted rate, early withdrawal penalty, and deposit insurance before opening it. Taxes are excluded.
What this calculator does
The monthly view estimates interest from your balance and an illustrative APY, then shows the balance needed for your income goal. Its maturity map shows when equal CDs would return your original deposit. The yearly view splits your money into one- through five-year terms and estimates each CD's value on its own maturity date.
Why ladder instead of one big CD?
A ladder schedules access to part of your principal without having to break every CD at once. You can spend a maturity or reinvest it at the rate available then. Check actual offers: longer terms do not always pay more, and interest payout rules vary.
Things to check before you buy
Confirm each CD is within FDIC/NCUA limits (our FDIC insurance calculator helps), check what the early withdrawal penalty would cost if you had to break a rung, and compare the ladder against simply staying in savings with our CD vs savings calculator.
Frequently asked questions
What is a CD ladder?
A strategy where you split a deposit across several CDs with staggered maturity dates — for example $5,000 each into 1-, 2-, 3-, 4-, and 5-year CDs. Each year one CD matures, giving you penalty-free access to part of your money, and you reinvest it into a new 5-year CD to keep the ladder going.
How much money do I need to start a CD ladder?
Add up the minimum deposit required for each CD you plan to open. Minimums vary by institution and term. Use that total as your starting point, then check whether the expected interest meets your goal.
Is a CD ladder worth it when rates are falling?
It depends on the rates and terms you can actually get, how soon you need the money, and what happens when a rung matures. Compare current CD offers with savings and Treasury bills before deciding.
Are CDs in a ladder FDIC insured?
Yes, CDs at FDIC-insured banks (and share certificates at NCUA-insured credit unions) are covered up to $250,000 per depositor, per institution, per ownership category — the ladder structure doesn't change that.
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