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Finance & money·Savings

CD Ladder Calculator

Calculate total interest earned from a CD ladder with 3–5 rungs. Enter your investment, term APYs, and see blended rate, per-CD amounts, and maturity schedule.

Added Jun 16, 2026

Quick examples

Input

Result

Enter a value for total amount to invest to see your result.

How it works

A CD ladder splits your savings across multiple CDs with staggered maturity dates. Each year, one CD matures — giving you liquidity — and you reinvest it into the longest rung to capture higher rates. This calculator shows total interest earned and a per-rung breakdown.

Step by step

  1. 01Divide your total investment equally across the chosen number of CDs (rungs).
  2. 02Each CD earns compound interest at its stated APY for its term.
  3. 03The first CD matures in 1 year, giving you liquidity and the option to reinvest.
  4. 04Roll matured CDs into new longest-term CDs to maintain the ladder.
  5. 05Total interest is the sum of interest earned on each rung over its term.

Examples

$20,000 into 5 CDs at 4.5% / 4.3% / 4.1% / 4.0% / 3.9%

Splitting $20,000 into five $4,000 CDs earns a blended APY of about 4.16% — more than a single 1-year CD, with annual liquidity as each rung matures.

Inputs

Total amount to invest:
20000
Number of rungs (CDs):
5
1-year CD APY:
4.5
2-year CD APY:
4.3
3-year CD APY:
4.1
4-year CD APY:
4
5-year CD APY:
3.9

Result

Blended average APY:
4.16%
Note: CD rates shown are for illustration. Check your bank or credit union for current APYs before committing. CDs are FDIC-insured up to $250,000 per depositor per institution. Splitting across banks extends coverage. Early withdrawal penalties (typically 3–12 months of interest) can significantly reduce returns if you need funds before maturity.

Related guides

Frequently asked questions

What is a CD ladder?

A CD ladder is a savings strategy where you divide your money across multiple CDs with different maturity dates — e.g. 1-, 2-, 3-, 4-, and 5-year CDs. Each year, one CD matures, giving you access to cash and the option to reinvest at the current rate. This avoids locking all your money into a single term and keeps one CD maturing every year.

Why build a CD ladder instead of buying one long-term CD?

A single long-term CD locks your money away for years. If rates rise, you miss out. A ladder gives you annual liquidity and lets you reinvest at higher rates when each rung matures. Over time, the average return is similar to the long term but with much better flexibility.

Are CDs safe?

CDs at FDIC-insured banks are insured up to $250,000 per depositor per institution (and $500,000 for joint accounts). Credit union CDs are insured by NCUA to the same limits. They are among the safest savings vehicles available.

What happens if I need the money before a CD matures?

Most CDs charge an early withdrawal penalty — typically 3 months of interest for short-term CDs and 6–12 months for longer terms. With a CD ladder, only one rung matures each year, so you have limited access to penalty-free cash at any given time. For money you may need quickly, keep an emergency fund in a high-yield savings account.