A CD ladder lets you earn higher interest rates without locking all your money away for years. By spreading your money across different maturities (6, 12, 24, 36 months, etc.), you get a balance of liquidity and better yields. Use the calculator below to design your own ladder and see how much interest you can earn.
What Is a CD Ladder?
A CD ladder is a strategy where you divide your total deposit into several certificates of deposit with different terms. Instead of putting all your money into a single 3-year CD, you might split it into 1-, 2- and 3-year CDs. As each CD matures, you can either:
- Cash out the money if you need it, or
- Reinvest into a longer-term CD to keep the ladder going.
This way you’re not stuck with all your money locked away, but you still benefit from the higher rates on longer-term CDs.
How to Use This CD Ladder Calculator
- Enter your total amount to invest in CDs.
- Choose how many “rungs” (CDs) you want in your ladder.
- Select a term and rate for each rung (for example, 6, 12, 24 and 36 months).
- Click Calculate to see:
- How much goes into each CD
- Interest earned per rung
- Total interest for your entire ladder
You can tweak the amounts, terms and rates as many times as you want until you find the ladder that fits your goals.
CD Ladder Calculator
Adjust the values below to design your own ladder and estimate how much interest you’ll earn over time.
CD Ladder Calculator
| # | Term (months) | Rate (APY %) | Amount ($) | Interest ($) | Final Balance ($) |
|---|
Example: $10,000 in a 5-Rung CD Ladder
Here’s a simple example of how a CD ladder works if you have $10,000 to invest and want to keep some flexibility every year:
| Rung | Term | Amount | Example APY | Interest at Maturity* |
|---|---|---|---|---|
| 1 | 12 months | $2,000 | 4.50% | ≈ $90 |
| 2 | 24 months | $2,000 | 4.75% | ≈ $195 |
| 3 | 36 months | $2,000 | 5.00% | ≈ $315 |
| 4 | 48 months | $2,000 | 5.10% | ≈ $435 |
| 5 | 60 months | $2,000 | 5.25% | ≈ $580 |
| Total Interest (all rungs): | ≈ $1,615 | |||
*Numbers are simplified and rounded for illustration. Always check exact APYs with each bank.
When the 12-month CD matures, you can either use that money or roll it into a new 60-month CD. Over time, your ladder becomes a series of long-term CDs that mature regularly, giving you both high yields and regular access to cash.
Popular CD Ladder Templates
1-Year CD Ladder (Short-Term Focus)
- 3-month CD
- 6-month CD
- 9-month CD
- 12-month CD
Good if you want quick access to your money and don’t want to lock funds for years.
2-Year CD Ladder
- 6-month CD
- 12-month CD
- 18-month CD
- 24-month CD
A balanced option for people who want a little more yield without losing flexibility.
5-Year CD Ladder (Long-Term / Retirement-Oriented)
- 1-year CD
- 2-year CD
- 3-year CD
- 4-year CD
- 5-year CD
Ideal if you are investing for the medium to long term and want to lock in higher rates while still having at least one CD mature every year.
Best Banks and Online Banks for CD Ladders
Many savers build CD ladders using online banks because they tend to offer higher APYs and low minimum deposits. When comparing banks for your ladder, look at:
- APY for each term (6-, 12-, 24-, 36-, 60-month CDs)
- Minimum deposit requirements
- Early withdrawal penalties
- FDIC or NCUA insurance
You can start by checking our latest CD rates today and then plugging those rates into the calculator above.
CD Ladder FAQs
What is the main benefit of a CD ladder?
The main benefit is that you earn higher interest rates on longer-term CDs while still having money come due regularly. This reduces the risk of locking all your savings in a single CD with a long maturity. How many rungs should my CD ladder have?
Many people start with a 3- to 5-rung ladder. More rungs give you more frequent maturities, but also means smaller amounts in each CD. Use the calculator to test different setups and see what feels comfortable. Can I build a CD ladder with a small amount, like $1,000?
Yes. You can build a basic ladder with smaller balances, as long as the CDs you choose meet the bank’s minimum deposit. For example, four rungs of $250 each. Focus on keeping things simple and using terms that match when you might need the money. What happens when one of the CDs in my ladder matures?
When a rung matures, you usually have a short grace period to decide. You can:
- Withdraw the money (principal + interest), or
- Reinvest it into a new CD—often the longest term in your ladder—to keep the ladder going.
Many people simply roll each maturity into a new long-term CD, so the ladder stays in place. Is a CD ladder safe?
CDs offered by banks insured by the FDIC (and credit union CDs insured by the NCUA) are considered very safe, up to the legal insurance limits. A ladder doesn’t change that—it just changes how you split the money across different maturities. Should I use a CD ladder or a high-yield savings account?
A high-yield savings account gives you more flexibility (you can move money anytime), but CD ladders can offer higher rates in exchange for locking the money for fixed periods. Some savers use both: an emergency fund in savings, and longer-term money in a CD ladder.