Build an estimated CD maturity calendar and see how much principal plus after-tax interest may become available at each rung. The model splits the deposit evenly, spaces maturities across the longest term, compounds each rung at one assumed APY, and taxes only interest. It is useful for checking whether a ladder’s cash-flow rhythm matches planned spending, while making the simplifying assumptions easy to see.
Rung maturity = (Deposit ÷ rungs) × (1 + APY)months held ÷ 12
After-tax total = principal + gross interest × (1 − tax rate)
Use the main result as a scenario estimate and compare it with alternative assumptions. Small changes in tax, return, inflation, or payment terms can compound into meaningful differences.
This is an educational estimate, not tax, investment, insurance, or legal advice. Actual taxes and contract benefits depend on jurisdiction and plan terms.
A $100,000 ladder with five rungs, a 60-month longest term, 4.5% APY, and 24% tax produces an estimated after-tax total of about $110,897. Each $20,000 rung matures roughly every 12 months.
It divides the longest term by the number of rungs, creating evenly spaced maturity dates.
Yes. The main result includes the original deposit plus estimated after-tax interest.
Use a blended APY for a quick estimate; a rung-by-rung model is needed for exact quoted rates.
No. The estimate assumes every CD is held to maturity.
Returning deposited principal is not interest income; the model applies the entered rate only to earnings.
| Variable | Use |
|---|---|
| Rungs | Number of equal principal slices |
| Interval | Longest term ÷ rungs |
| APY | Annual compound yield assumption |