CD / Treasury Ladder Builder
Spread your savings across certificates of deposit or Treasuries with different maturities, so you are never locked into one single rate.
Your ladder results
Total interest at full completion
$0.00
Maturity schedule
Rounded to the cent| Rung # | Matures in | Value at maturity |
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Tax note: Treasury interest is exempt from state and local income tax; CD interest is not. This calculator shows pre-tax values for both.
Why laddering smooths rate risk. A ladder splits your money into equal rungs that mature one after another. When a rung matures, you can reinvest it at whatever rates exist then — so your average return drifts toward current rates instead of being stuck at one rate for the whole period.
If rates rise: your short rungs mature first and get reinvested at the new, higher rates, lifting the ladder's average. Only the later rungs keep earning the lower original rate until their turn comes.
If rates fall: the rungs that mature later keep earning the higher rate you locked in at the start, which cushions the drop. Each rung that matures does get reinvested at the lower rate, but the remaining rungs still carry the old rate.
The trade-off: laddering gives up the maximum yield you could get if you perfectly predicted rates and went all-in at the top. In exchange, you get a smoother, more predictable average that is less sensitive to a single rate decision.
This page is for informational purposes only and is not financial, tax, legal, investment, or insurance advice.