A CD ladder spreads deposits across multiple CD terms so that portions mature at regular intervals, balancing yield and liquidity.

Does this model early withdrawal penalties?

No. It assumes you hold CDs to maturity. Use a penalty‑specific tool for early withdrawals.

CD Ladder Builder

Design a CD ladder by splitting your deposit across multiple terms, then estimate interest earned and when each rung matures.

Total deposit

Total amount to invest Number of ladder rungs Split equally?

Term & rate pattern

Shortest term (months) Term step between rungs (months) Base interest rate (%)

Rate step & reinvestment

Rate step per rung (%) Reinvest at maturity? Analysis horizon (years)

Tip: Use your bank’s current CD rates and typical term spacing (e.g., 6, 12, 24, 36 months).

Important: This tool assumes simple interest over the CD term and does not model compounding inside the CD or changing rates over time.

CD ladder formulas

1. Rung term pattern

Term_rung_n (months) =
  First term (months)
+ (n − 1) × Term step (months)

2. Rung rate pattern

Rate_rung_n (%) =
  Base rate (%)
+ (n − 1) × Rate step (%)

3. Rung interest (simple)

Interest_rung_n =
  Amount_rung_n × (Rate_rung_n ÷ 100) × (Term_rung_n ÷ 12)

The tool applies these formulas to each rung, then sums interest and estimates an average annualized yield for the ladder.

How to think about CD ladders

A CD ladder lets you earn higher rates on longer‑term CDs while still having portions of your money mature at regular intervals for liquidity.

Typical ladder structure

Equal splits across 3–5 rungs (e.g., 6, 12, 24, 36, 48 months).
Shorter rungs provide near‑term access.
Longer rungs capture higher yields.

Worked example

Suppose you invest $20,000 across 4 rungs, equal split, starting at 12 months with 12‑month steps, base rate 4.0% and rate step 0.25%:

Each rung amount = 20,000 ÷ 4 = $5,000.
Terms = 12, 24, 36, 48 months.
Rates = 4.0%, 4.25%, 4.5%, 4.75%.
Interest per rung uses simple interest over its term.

Summing interest across rungs gives you the total ladder yield for the first cycle.

Frequently Asked Questions

Does this model reinvesting maturing CDs?

If you select reinvest, the tool approximates additional cycles within your horizon using the same pattern. It’s a simplification.

Does this include early withdrawal penalties?

No. It assumes you hold CDs to maturity. Use a penalty‑specific calculator for early withdrawals.

Can I export the ladder?

Yes. Use Export CSV to download rung‑by‑rung details.

Is this financial advice?

No. It’s an educational tool. Consult a financial professional for personalized guidance.

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Information on this site is for educational purposes only and is not financial, tax, or legal advice. Calculations are estimates and may not reflect actual results. See our Privacy Policy and Disclaimer.