# How much will my CD ladder earn?

Splits a sum equally across CDs with different terms and APYs, a CD ladder, and works out what each rung is worth at maturity, the total interest and when the money frees up.

- Page: https://www.acalculator.org/finance/cd-ladder-calculator
- JSON spec: https://www.acalculator.org/finance/cd-ladder-calculator.json
- Version: c135ca55fc9f

## Default answer

Example with the default inputs (Total to invest $25,000.00, CDs in the ladder [Term (years) 1, APY 4%; Term (years) 2, APY 3.9%; Term (years) 3, APY 3.8%; Term (years) 4, APY 3.75%; Term (years) 5, APY 3.7%]): $25,000.00 in a CD ladder earns $2,978.82 of interest by the time the last CD matures.

## Inputs

| Key | Label | Description |
| --- | --- | --- |
| amount | Total to invest | The sum split equally across the CDs. |
| rungs | CDs in the ladder | Each CD’s term in years and its APY, 1 to 10 CDs. |

## Outputs

| Key | Label | Description |
| --- | --- | --- |
| interest | Interest from the ladder | Every CD’s balance at its maturity, added up, minus the total invested. |
| invested | Total invested | The sum split across the CDs. |
| perRung | In each CD | The total ÷ the number of CDs. |
| total | Balances at maturity | Each CD’s deposit × (1 + APY)^term, added up. |
| average | Average APY | The CDs’ APYs added up ÷ the number of CDs (each holds the same amount). |
| first | First CD matures in | The shortest term, in years. |
| last | Last CD matures in | The longest term, in years. |
| rungs | Each CD at maturity | Each CD’s term, APY and balance at maturity, shortest first. |

## Method

D = total ÷ number of CDs; each CD at maturity = D × (1 + APY)^term; interest = Σ balances − total; average APY = Σ APY ÷ number of CDs.

## Assumptions

- The total is split equally, and each CD is held to its maturity with interest left in the CD.
- The interest is for the first round only. Rolling each maturing CD into a new CD, which keeps a ladder going, is not modelled.
- No early withdrawal penalties or tax.

## Worked examples

1. amount = $25,000.00, rungs = {"term":1,"apy":4} or {"term":2,"apy":3.9} gives perRung = $5,000.00, total = $27,978.82, interest = $2,978.82, average = 3.83%, first = 1, last = 5. Source: Consumer Financial Protection Bureau, Regulation DD (Truth in Savings), 12 CFR 1030, Appendix A: annual percentage yield calculation, https://www.consumerfinance.gov/rules-policy/regulations/1030/a/ (retrieved 2026-10-03).
2. amount = $10,000.00, rungs = {"term":0.5,"apy":5} or {"term":1,"apy":4.5} gives perRung = $5,000.00, total = $10,348.48, average = 4.75%, first = 0.5. Source: Consumer Financial Protection Bureau, Regulation DD (Truth in Savings), 12 CFR 1030, Appendix A: annual percentage yield calculation, https://www.consumerfinance.gov/rules-policy/regulations/1030/a/ (retrieved 2026-10-03).
3. amount = $30,000.00, rungs = {"term":1,"apy":0} or {"term":2,"apy":0} gives perRung = $10,000.00, total = $30,000.00, interest = $0.00, average = 0%. Source: Office of the Comptroller of the Currency, HelpWithMyBank, Certificates of Deposit (CDs), https://www.helpwithmybank.gov/help-topics/bank-accounts/certificates-of-deposit/index-certificates-of-deposit.html (retrieved 2026-10-03).

## FAQ

### What is a CD ladder?

It is one sum split across several certificates of deposit with different terms, for example 1, 2, 3, 4 and 5 years. Part of the money becomes available each year, and the longer CDs can lock in their rates.

### How is each CD’s value worked out?

With the APY, which already includes compounding: balance = deposit × (1 + APY)^term. $5,000 in a 3-year CD at 3.8% APY grows to 5,000 × 1.038³ = $5,591.93.

### How much does the default ladder earn?

$25,000 split into five $5,000 CDs at 4%, 3.9%, 3.8%, 3.75% and 3.7% for 1 to 5 years is worth $27,978.82 in all at maturity: $2,978.82 of interest.

### Why is the average APY a plain average?

Each CD holds the same amount, so each APY counts equally. It describes the rates, not the return on the whole ladder, because the CDs run for different times.

### What happens when a CD matures?

The money is yours to spend or to put into a new CD at the rate then on offer. Rolling into a new CD keeps the ladder going; this calculator shows only the first round.

### Can I take money out before a CD matures?

Usually only with an early withdrawal penalty. Federal law sets a minimum penalty for the first six days and no maximum; see the CD early withdrawal penalty calculator.

## Sources

- Consumer Financial Protection Bureau, Regulation DD (Truth in Savings), 12 CFR 1030, Appendix A: annual percentage yield calculation. https://www.consumerfinance.gov/rules-policy/regulations/1030/a/ (retrieved 2026-10-03)
- Office of the Comptroller of the Currency, HelpWithMyBank: What are the penalties for withdrawing money early from a CD? https://www.helpwithmybank.gov/help-topics/bank-accounts/certificates-of-deposit/cd-penalties.html (retrieved 2026-10-03)