Treasury Ladder Break-Even Age Calculator turns your assumptions into a practical planning estimate. Enter the investment amount, timing, yield, and applicable tax inputs to see the main result plus supporting figures that explain where it comes from. The tool is designed for comparing cash-flow choices and testing scenarios, not predicting future rates. Adjust one input at a time to see which assumption has the greatest effect on your plan.
Break-even age is the age when cumulative after-tax interest would equal the original principal, assuming principal remains invested and income is not reinvested.
This is a capital-recovery milestone, not a promise of return. Inflation, changing yields, sales, and principal losses are not modeled.
At age 55, a $250,000 ladder yielding 4.4% with a 22% federal rate generates about $8,580 after tax per year. Cumulative interest equals principal in about 29.14 years, near age 84.14.
No. It is a planning estimate based on the constant inputs you enter; actual yields, taxes, and cash flows can change.
Use a current quoted yield that matches the securities, maturities, and compounding basis you expect to use.
Interest is commonly taxed as ordinary income, so the marginal rate helps estimate the portion of interest retained after tax.
Yes when the calculation remains defined. A zero yield models principal-only cash flow, but break-even calculations that require positive income reject it.
No. Results are shown in nominal dollars unless inflation is explicitly included as an input, so purchasing power may differ.
| Input | Purpose |
|---|---|
| Current age | years |
| Treasury ladder value | US dollars |
| Average annual yield | Percent |
| Federal tax rate | Percent |