A ladder keeps money accessible while capturing longer-term CD rates.
A CD ladder calculator builds a ladder of certificates maturing at staggered intervals and shows the blended yield, so you can capture longer-term rates while keeping part of your money regularly accessible.
A single long CD locks up all your money; a single short one misses higher long-term rates. A ladder splits the money across CDs maturing one, two, three, and more years out, so a portion comes due every year to reinvest or spend. You get a blended yield between the short and long rate, with regular access.
As each rung matures, the classic move is to reinvest it into a new longest rung, keeping the ladder rolling and steadily capturing the highest available rates without ever locking everything up at once. Laddering also smooths interest-rate risk: you're never fully exposed to whatever rates happen to be on a single day.
A set of CDs maturing at staggered intervals, so part of your money comes due regularly while the rest earns higher long-term rates.
It balances access and yield, you're never locked into a single rate or maturity, and a portion is always available to reinvest or spend.
As each CD matures, reinvest it into a new longest rung. This keeps a rung maturing every period at the best available rates.
See the exact formula and a worked example on our methodology page.