Cd Ladder Calculator
Plan and optimize a Certificate of Deposit (CD) ladder strategy. Calculate total interest earned, effective APY, and maturity schedule based on multiple CD terms and amounts.
Published by:
isCalculator Editorial Team
Was this calculator helpful?
How to use this tool?
This calculator helps you build a CD ladder by estimating total interest and effective APY for up to 10 CDs.
- Enter CD details for each CD: Deposit ($), Term (months), and APY (%). Use the dropdown for term (3, 6, 12, 24, 36, or 60 months). APY must be between 0% and 20%.
- Add more CDs by clicking "Add CD" (max 10). Remove entries by clearing the input fields or refreshing the page.
- Choose a reinvestment strategy (optional): "No Reinvestment" (default) or "Reinvest at Same Term" (future interest is reinvested at the same term and APY).
- Click "Calculate Ladder" to see results: Total Deposits, Total Interest, Effective APY, and Total Value at Maturity.
- Review the formula shown below results: Interest = Deposit × (1 + APY/100)^(term/12) - Deposit. Effective APY uses the weighted average term.
Note: All monetary values are in USD. Terms are in months. The calculator assumes compound interest over the CD term.
Previous Results
| Result | Inputs | Date |
|---|
Frequently Asked Questions
A CD ladder is an investment strategy where you divide your money into multiple CDs with different maturity dates. This allows you to take advantage of higher rates on longer terms while maintaining periodic access to funds.
Effective APY is the overall annual percentage yield of the ladder, calculated as (Total Value at Maturity / Total Deposits)^(12 / average term in months) - 1.
Yes, you can add up to 10 CDs using the 'Add CD' button. The calculator will handle all entries.
