Bond Ladder Plan Calculator

Work out bond ladder plan instantly with clear inputs, formula shown and shareable results.

About Bond Ladder Plan Calculator

A bond ladder splits money across equally spaced maturities, so a slice matures regularly and can be reinvested at prevailing rates. That structure spreads reinvestment risk and keeps average maturity roughly half the longest rung.

Formula

Ladder

Per rung = total / rungs; average maturity = spacing × (rungs + 1)/2

Worked example

With the default values below, Bond Ladder Plan Calculator returns Amount Per Rung of $1,000,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Total To Investminimum 0: 5,000,000
Number Of Rungsaccepts 2–20: 5
Average Yieldaccepts 0–100 %: 7 %
Years Between Maturitiesaccepts 0.5–5: 1

Results

Amount Per Rung: $1,000,000.00
Annual Interest Income: $350,000.00
Average Maturity: 3.00 years
Amount Maturing For Reinvestment Each Year: $1,000,000.00

Step by step

1Values used
2Ladder
3Amount Per Rung= 1,000,000.00
4Annual Interest Income= 350,000.00
5Average Maturity= 3.00 years
6Amount Maturing For Reinvestment Each Year= 1,000,000.00

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.
This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.

Frequently Asked Questions

Why not just buy one maturity?

A single maturity concentrates reinvestment risk on one date. A ladder averages across the rate cycle.

What happens when a rung matures?

It is reinvested at the far end of the ladder, keeping the structure intact and the average maturity stable.