CD Ladder Calculator 2026
Split $25,000 across 5 staggered CDs at today's best tracked rates and it earns $3,932.25 by the end of the first cycle, while freeing up cash every year. Adjust every rung below.
Updated Nov 7, 2026
A $25,000 ladder, rung by rung
The classic 5-rung ladder: equal $5,000 slices in 1 through 5-year CDs. APYs are the best standard rates we track, checked Nov 7, 2026; the calculator recomputes every row for your terms and rates.
| Rung | Term | APY | Deposit | Maturity value | Interest |
|---|---|---|---|---|---|
| 1 | 1 year | 4.60% | $5,000.00 | $5,230.00 | $230.00 |
| 2 | 2 years | 4.80% | $5,000.00 | $5,491.52 | $491.52 |
| 3 | 3 years | 4.85% | $5,000.00 | $5,763.35 | $763.35 |
| 4 | 4 years | 4.95% | $5,000.00 | $6,065.96 | $1,065.96 |
| 5 | 5 years | 5.00% | $5,000.00 | $6,381.41 | $1,381.41 |
What frees up each year
The point of a ladder: one rung matures every year, so you are never more than 12 months from some of your money, penalty-free.
| Year | Rung maturing | Amount freed |
|---|---|---|
| Year 1 | 1 year CD | $5,230.00 |
| Year 2 | 2 years CD | $5,491.52 |
| Year 3 | 3 years CD | $5,763.35 |
| Year 4 | 4 years CD | $6,065.96 |
| Year 5 | 5 years CD | $6,381.41 |
CD ladder vs putting it all in one CD
Laddering trades a little yield for a lot of liquidity. Against one 5 years CD the ladder gives up $2,974.79 over the first cycle; against one 1 year CD it earns $2,782.25 more.
| Strategy | Rate(s) | Interest, first cycle | Access to cash |
|---|---|---|---|
| One 1 year CD, rolled | 4.60% | $1,150.00 | Everything, every 1 year |
| 5-rung ladder | 4.84% blended | $3,932.25 | $5,000+ every year |
| One 5 years CD | 5.00% | $6,907.04 | Nothing for 5 years |
The all-in long CD wins on yield only if rates stay put and you never need the money early. Break it early and the early-withdrawal penalty (typically 6-12 months of interest on a long CD) can erase the edge. Each bank's penalty is modeled on the CD calculator bank pages.
CD ladder interest by deposit size
The same 5-rung ladder at different deposit sizes. Interest scales with the deposit; the blended APY stays 4.84%.
| Deposit | Per rung | Total interest | Matures to |
|---|---|---|---|
| $5,000 | $1,000 | $786.45 | $5,786.45 |
| $10,000 | $2,000 | $1,572.90 | $11,572.90 |
| $25,000 | $5,000 | $3,932.25 | $28,932.25 |
| $50,000 | $10,000 | $7,864.49 | $57,864.49 |
| $100,000 | $20,000 | $15,728.98 | $115,728.98 |
Best rate we track for each rung
A ladder can span banks: each rung can go wherever that term pays best and still stay under FDIC limits. These are the top standard offers among the 83 banks we track, checked Nov 7, 2026.
| Rung term | Best APY | Bank |
|---|---|---|
| 1 year | 4.60% | Sallie Mae |
| 2 years | 4.80% | E*TRADE |
| 3 years | 4.85% | Popular Direct |
| 4 years | 4.95% | Popular Direct |
| 5 years | 5.00% | Sallie Mae |
Keeping the ladder rolling
Reinvest every matured rung at 5.00% and the example ladder grows to $40,610 in 10 years, $15,609.98 of interest, while still freeing cash every year. Rolling one 1 year CD at 4.60% instead reaches only $39,197.
| Year | Cash freeing up | Ladder value | Interest so far | One 1 year CD rolled |
|---|---|---|---|---|
| 1 | $5,230 | $26,210 | $1,210 | $26,150 |
| 2 | $5,492 | $27,500 | $2,500 | $27,353 |
| 3 | $5,763 | $28,864 | $3,864 | $28,611 |
| 4 | $6,066 | $30,304 | $5,304 | $29,927 |
| 5 | $6,381 | $31,819 | $6,819 | $31,304 |
| 6 | $6,675 | $33,410 | $8,410 | $32,744 |
| 7 | $7,009 | $35,080 | $10,080 | $34,250 |
| 8 | $7,356 | $36,834 | $11,834 | $35,826 |
| 9 | $7,742 | $38,676 | $13,676 | $37,474 |
| 10 | $8,144 | $40,610 | $15,610 | $39,197 |
Constant rates are a simplifying assumption: real reinvestment rates move, which is exactly the risk a ladder spreads out.
How to build a CD ladder
- Decide the total. Ladder money you will not need all at once; keep the emergency fund liquid (see the emergency fund calculator).
- Pick the rungs. Split the total evenly across staggered terms, e.g. $5,000 each into 1, 2, 3, 4 and 5-year CDs for a 5-rung ladder.
- Shop each rung separately. The best 1-year and best 5-year rates are rarely at the same bank; spreading rungs also keeps each bank under the $250,000 FDIC limit. The rate table above links each term's top offer.
- Check the early-withdrawal penalty on every rung before opening, so a surprise expense costs months of interest, not principal.
- Reinvest at the back. When each rung matures, roll it into a new longest-term CD. After one full cycle, a long CD matures every year.
- Mind auto-renewal. Banks roll matured CDs at their then-current rate by default, usually not the best available. Compare first.
CD Ladder Formula
Each rung grows on its own; the ladder's total is the sum of its rungs.
Aᵢ = (P ÷ n) × (1 + APYᵢ)^(tᵢ)Example:
Rung 5 of the example ladder: $5,000 at 5% APY for 5 years
Variables:
Total = Σ Aᵢ, blended APY = (APY₁ + … + APYₙ) ÷ nExample:
$25,000 across 5 rungs
Variables:
These formulas provide the mathematical foundation for the calculations. Actual results may vary based on rounding, compounding frequency, and specific lender policies.
CD ladder FAQs
Quick answers on building a CD ladder, blended APY, liquidity and insurance.
How much interest does a $25,000 CD ladder earn?
Is a CD ladder better than one CD?
How do I build a CD ladder?
What happens when a CD in the ladder matures?
CD ladder vs high-yield savings account?
Are CDs in a ladder FDIC insured?
How many rungs should a CD ladder have?
What are the best CD rates for a ladder right now?
Sources and how we calculate
Each rung grows its share by its own APY for its own term: A = (P ÷ n) × (1 + APY)^(months ÷ 12), the same APY-consistent math as our CD calculator. The blended APY is the simple average of rung APYs. The rolling projection reinvests each matured rung at the reinvest APY and assumes constant rates; it is an illustration, not a forecast. Default rung APYs are the best standard rates among the 83 banks we track, checked Nov 7, 2026; results are estimates, not an offer from any bank.
- FDIC: National Rates and Rate Caps
- FDIC: Deposit Insurance
- Investor.gov (SEC): Certificates of Deposit
- CFPB: What is a certificate of deposit?
- IRS: Publication 550, Investment Income and Expenses
Figures last checked on Nov 7, 2026. Read our calculation methodology for data sources and update schedule.