CD Ladder Calculator

Your numbers

Total to invest

Number of rungs

1-year rate

5-year rate

Your ladder

Blended APY

Splits your money evenly across rungs maturing 1…N years out, with rates interpolated between the short and long rate. Illustrative.

About this calculator

How to build a CD ladder

Updated October 2026

A CD ladder splits your savings across certificates of deposit that mature at different times, usually one each year. You get a blend of short- and long-term rates, and part of your money becomes available every year without paying an early-withdrawal penalty. With the defaults, $25,000 split into five $5,000 CDs maturing in one to five years, at rates from 4.8% to 4.0%, earns a blended 4.40% and about $1,100 in the first year.

How a ladder works

Divide your money evenly across CDs of different lengths, for example 1, 2, 3, 4 and 5 years.
When the 1-year CD matures, reinvest it in a new 5-year CD.
Repeat every year. After the first cycle, every CD is a 5-year CD earning long-term rates, yet one matures every year.

Using the default rates, here is the starting ladder:

Rung	Amount	Rate
1 year	$5,000	4.80%
2 years	$5,000	4.60%
3 years	$5,000	4.40%
4 years	$5,000	4.20%
5 years	$5,000	4.00%

The defaults show short-term CDs paying more than long-term ones, which happens when banks expect rates to fall. Enter the rates your bank or credit union is actually offering; when long-term CDs pay more, the ladder's advantage over a single short CD grows.

Why build a ladder instead of one CD

Access: part of your money comes free every year, so you are less likely to break a CD early and pay a penalty, which is often several months of interest.
Rate risk: if rates rise, you reinvest the maturing rung at the higher rate. If they fall, the longer rungs keep earning the old rate.
No guessing: you never have to bet everything on where rates will go.

Ladder variations

Short ladder: 3-, 6-, 9- and 12-month CDs for money you may need within a year, such as an emergency fund overflow.
Barbell: half in very short CDs, half in long ones, skipping the middle.
Bullet: several CDs that all mature around one date, for a known expense like a down payment.

Things to check

Insurance: FDIC (banks) and NCUA (credit unions) insure deposits up to $250,000 per depositor, per institution, per ownership category.
Early-withdrawal penalties differ widely between banks; compare them along with the rate.
Taxes: CD interest is taxed as ordinary income each year, even if you don't withdraw it. Holding CDs in an IRA avoids that.
Brokered CDs from a brokerage can be sold before maturity instead of paying a penalty, but their market price can fall if rates rise.

See what a single CD earns with the CD calculator, or compare a CD with a high-yield savings account in our savings vs CD guide. Credit union members can use the share certificate ladder calculator.

Frequently asked questions

What is a CD ladder?

A set of CDs with staggered maturity dates, typically one maturing each year. It gives you regular access to part of your money while earning longer-term rates on the rest.

How many rungs should a CD ladder have?

Five rungs, one to five years, is the classic setup. Fewer, shorter rungs suit money you might need soon.

Is a CD ladder better than a high-yield savings account?

A ladder locks in rates and protects you if rates fall, but your money is less accessible. A savings account is fully liquid but its rate can drop at any time. Many people keep an emergency fund in savings and use a ladder for money they won't need for a while.

What happens when a CD in the ladder matures?

You can withdraw it or reinvest it, usually in a new CD at the longest rung, to keep the ladder going.

Are CDs safe?

CDs at FDIC-insured banks and NCUA-insured credit unions are protected up to $250,000 per depositor, per institution, per ownership category.

The blended yield is the simple average of the rung rates; rates between the 1- and 5-year rates are interpolated. Use the rates your institution offers. Insurance limits from the FDIC and NCUA.