CD Ladder Calculator
Free CD ladder calculator to plan a certificate of deposit strategy and maximize your interest earnings.
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CD Ladder Strategy Explained
A CD ladder is a savings strategy that spreads your money across multiple certificates of deposit with different maturity dates. Instead of locking all your cash into one long-term CD, you stagger the investments so that portions become available at regular intervals.
This approach gives you the best of both worlds — you earn the higher interest rates of longer-term CDs while maintaining periodic access to your funds. When each CD matures, you can either use the cash or reinvest it at the longest term to keep the ladder going.
Start with 4-5 CDs spaced evenly across terms (such as 3, 6, 9, 12, and 18 months). When a CD matures, reinvest it at the longest term to maintain your ladder structure and maximize returns over time.
Frequently Asked Questions
A CD ladder spreads investments across multiple CDs with staggered maturity dates, providing regular access to funds while earning higher rates.
Most financial advisors recommend 4-6 CDs for a balanced ladder, but you can use as few as 3 or as many as 10+.
You can either withdraw the funds or reinvest them in a new CD at the longest term to maintain the ladder structure.
Yes, FDIC-insured CDs are guaranteed up to $250,000 per depositor per bank if held to maturity. Check that your bank is FDIC-insured before investing.
Minimums vary by institution, but many banks offer CDs starting at $500-$1,000 per CD.
CDs typically offer higher rates than savings accounts, but your money is locked for the term. A ladder provides periodic liquidity.