Split your savings across several certificates of deposit with staggered maturity dates. See each rung's term, rate, and maturity date, plus your total interest and effective annual yield for the whole ladder.
Enter how much you want to invest, how many rungs to split it across, and how long the ladder should run. Rates default to realistic CD APYs โ adjust any rung to match the offers you find.
Scenario: Priya wants an emergency fund that stays liquid but earns more than a savings account. She splits $6,000 across four CDs that mature every 3 months.
Rungs: $1,500 each at 3 mo (4.00%), 6 mo (4.20%), 9 mo (4.30%), and 12 mo (4.40%).
Interest: $15.00 + $31.50 + $48.38 + $66.00 = $160.88.
Effective yield 2.68% โ total at maturity $6,160.88, with one rung available every 3 months.
Scenario: Marcus is saving for a down payment in about two years. He builds a 24-month ladder with 5 rungs so money becomes available roughly every 4โ5 months.
Rungs: $4,800 each at 5 mo (4.10%), 10 mo (4.20%), 14 mo (4.35%), 19 mo (4.50%), and 24 mo (4.60%). Rung terms are rounded to whole months (5, 10, 14, 19, 24).
Interest: $82.00 + $168.00 + $243.60 + $342.00 + $441.60 = $1,277.20.
Effective yield 5.32% over the 24-month cycle โ total at maturity $25,277.20.
Scenario: Dana wants higher yields without locking all $50,000 away for five years. Six rungs spread across a 60-month ladder give her a maturity about every 10 months.
Rungs: $8,333.33 each at 10 mo (4.20%), 20 mo (4.30%), 30 mo (4.40%), 40 mo (4.50%), 50 mo (4.60%), and 60 mo (4.80%).
Interest: $291.67 + $597.22 + $916.67 + $1,250.00 + $1,597.22 + $2,000.00 = $6,652.78.
Effective yield 13.31% over the 60-month cycle โ total at maturity $56,652.78.
Each rung holds your money for a different length of time. A 12-month ladder with 4 rungs produces terms of 3, 6, 9, and 12 months. Terms are rounded to the nearest whole month, and the longest rung always equals the ladder length.
Simple interest paid at maturity. With equal rungs, PrincipalPerRung = TotalAmount รท Rungs. Example: $3,000 at 4.40% for 12 months earns $3,000 ร 0.044 ร 1 = $132.00.
Total interest from every rung divided by your total investment, expressed as a percentage for the full ladder cycle. A 12-month ladder that earns $321.75 on $12,000 has an effective yield of 2.68%.
A ladder is simply a set of CDs with different maturity dates, arranged so that one rung matures on a regular schedule. The shortest rung provides near-term liquidity, while the longer rungs earn higher rates. When a rung matures you have three choices: spend the money, let it sit in a savings account, or reinvest it into a new longest-term CD to keep the ladder rolling for another full cycle.
| Ladder Length | Rungs | Rung Terms (months) | Maturity Cadence |
|---|---|---|---|
| 12 months | 4 | 3, 6, 9, 12 | Every 3 months |
| 24 months | 4 | 6, 12, 18, 24 | Every 6 months |
| 24 months | 5 | 5, 10, 14, 19, 24 | Every 4โ5 months |
| 36 months | 6 | 6, 12, 18, 24, 30, 36 | Every 6 months |
| 48 months | 4 | 12, 24, 36, 48 | Every 12 months |
| 60 months | 5 | 12, 24, 36, 48, 60 | Every 12 months |
| 60 months | 6 | 10, 20, 30, 40, 50, 60 | Every 10 months |
Rung terms are rounded to the nearest whole month; the longest rung always equals the ladder length.
A CD ladder is a savings strategy that splits your money across several certificates of deposit with different maturity dates. Instead of putting $12,000 into one 12-month CD, you might open four CDs of $3,000 each maturing in 3, 6, 9, and 12 months. Because the maturities are staggered, one rung of your ladder becomes available every few months โ giving you regular access to your money while every dollar still earns CD rates.
The payoff is a blend of liquidity and yield. A single 3-month CD keeps your money available quickly but pays a low rate; a single 12-month CD pays more but locks everything up. A ladder splits the difference: your average yield sits between short- and long-term rates, and you always have cash coming due soon. As each rung matures, you can withdraw the money or reinvest it into a new longest-term CD to keep the ladder rolling.
Building a ladder takes about ten minutes and four decisions:
Use this calculator to model the exact interest each rung earns before you open anything. Then shop rates at FDIC-insured banks โ online banks and credit unions often pay the best APYs on CDs.
A single CD is simple: you deposit once, lock a rate, and wait for one maturity date. The problem is that your entire balance is exposed to the same term. If you need part of the money early, you pay an early-withdrawal penalty on whatever you take out. If rates rise mid-term, you can't take advantage until the CD matures.
A ladder solves both problems. Because rungs mature on a staggered schedule, you always have money coming due soon โ no penalty needed. And because only one rung reprices at a time, you capture rising rates gradually instead of missing them entirely. The trade-offs are a slightly lower average yield than the single longest CD would pay, plus a bit more account management.
Whatever structure you choose, keep FDIC insurance in mind: deposits are protected up to $250,000 per depositor, per insured bank, per ownership category. A ladder larger than that should be spread across multiple banks to keep the entire balance covered.
โ ๏ธ Disclaimer: CD rates change frequently and vary by bank. Early withdrawals typically incur penalties. This calculator uses simple interest estimates; actual interest may compound differently. Not financial advice.