Bond Ladder Calculator
See how much yearly income a sum could produce from Treasuries, bonds or CDs that mature one year apart, or how much you would need to invest for the income you want.
What do you want to work out?
The yield is the interest a bond pays each year, as a percentage of its price. Longer bonds usually pay a little more. To use the rates your broker or bank offers today, type them into the ladder table below.
Interest in year one
$4,912
4.91% average yield across the bonds
Total interest
$14,990
by year 5, with every bond held to maturity
Total paid back to you
$114,990
your $100,000 plus interest
Cash the ladder pays you each year
View as table
| Year | Bonds maturing | Interest | Total |
|---|---|---|---|
| 1 | $20,000 | $4,912 | $24,912 |
| 2 | $20,000 | $4,004 | $24,004 |
| 3 | $20,000 | $3,028 | $23,028 |
| 4 | $20,000 | $2,028 | $22,028 |
| 5 | $20,000 | $1,018 | $21,018 |
Your ladder, bond by bond
Type a different yield into any row to use your own rates. The amount is split equally across the bonds.
| Matures | Yield | Buy | Interest a year | Total interest |
|---|---|---|---|---|
| Year 1 | $20,000 | $908 | $908 | |
| Year 2 | $20,000 | $976 | $1,952 | |
| Year 3 | $20,000 | $1,000 | $3,000 | |
| Year 4 | $20,000 | $1,010 | $4,040 | |
| Year 5 | $20,000 | $1,018 | $5,090 | |
| Total | 4.91% | $100,000 | $4,912 | $14,990 |
What this calculator is for
A bond ladder splits your money across several bonds — Treasuries, corporate bonds or bank CDs — that mature one after another, usually a year apart. Each year one bond repays its face value, and every bond still held pays interest along the way. The result is a predictable schedule of cash, which is why ladders are popular for retirement income, school fees and any spending you can date in advance.
The calculator answers the two questions people usually have: how much a sum you already have would pay you each year, and how much you would need to invest today to receive a set income every year.
How to use it
- Choose what you want to work out: the income from a sum you have, or the cost of a yearly income.
- Set how many years the ladder should cover and when the first bond should mature. A later start suits income you need in the future, such as from your first year of retirement.
- Choose the interest rates. The default uses US Treasury yields on 30 September 2026; you can switch to one rate for every year, or type your own rate for each bond in the ladder table.
- With a sum you have, decide whether maturing bonds are paid out to you or reinvested in a new long bond, which keeps the ladder going.
What the interest rates mean
A bond’s yield is the return it pays each year as a percentage of its price. A $10,000 bond yielding 5% pays about $500 a year until it matures, then returns the $10,000. Bonds that mature later usually pay a little more, because lenders want to be paid for tying money up longer; when short bonds pay more than long ones, the yield curve is said to be inverted. The US Treasury figures are the government’s published par yields for each maturity on 30 September 2026, with the years in between filled in on a straight line. Rates change every day, so for real planning use the yields your broker, TreasuryDirect or your bank quotes today.
What the calculator assumes
Each bond is bought at face value, pays its yield as interest once a year and is held until it matures without defaulting. Interest is paid out rather than reinvested, and taxes, trading costs and inflation are left out. In practice Treasuries and most corporate bonds pay interest twice a year, bonds often trade above or below face value and CD interest may compound, so treat the results as a close estimate rather than an exact schedule. When you ask for a rising income, the calculator buys more of the later bonds so that each year’s total matches your target.
Treasury yields are the US Treasury’s published par yield curve for 30 September 2026, interpolated between published maturities; they are an example, not a quote. Results assume each bond is bought at face value, pays interest once a year and is held to maturity without default, and they ignore taxes, fees and inflation. For why investors build ladders and what can go wrong, read bond ladders explained. A planning illustration, not advice.