How this number is made
A ladder splits cash across maturities so something comes due every year. Each rung here is one fifth of the total and compounds annually at the APY you type for that term. Early withdrawal penalties are not modeled.
- Use the APY, not a rate that still needs compounding math.
- When a rung matures you can spend it or buy a new long rung. This page stops at the first maturity of each.
Formula
Each rung = total ÷ 5. Value at maturity = rung × (1 + APY) ^ years.
Worked example
With the figures already in the form, interest if every rung is held to maturity is $3,341.
Questions
Why five rungs?
A one-through-five-year ladder is the usual picture. You can put zero in a rate only by accepting that rung still gets a fifth of the money. To skip a term, lower its share by changing the total and buying the rungs yourself.
Are CDs insured?
Bank CDs are generally FDIC insured up to the coverage limit, per depositor, per bank. This page does not track how much you already hold at that bank.