Bond Ladder Calculator
Split a sum across bonds that mature in different years and see the yearly interest, average yield and when cash comes back.
Quick answer
A bond ladder splits money equally across bonds that mature at set intervals. Each rung gets total / rungs and earns its yield, so first-year income is the sum of rung amount x yield, and each maturing rung is reinvested or spent.
Bond Ladder Calculator
Ignored in flat mode.
Amount per Rung
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Annual Interest (Year 1)
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Average Yield
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Average Maturity
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Total Interest to Maturity
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Cash received each year (interest + maturing principal, no reinvestment)
Maturity Schedule
| Rung | Matures (year) | Yield | Amount (₹) | Annual interest (₹) | Total interest (₹) |
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Assumptions & method
- Each rung receives total investment ÷ number of rungs. Maturity of rung k = first maturity + (k − 1) × spacing.
- Linear mode: yield of rung k = first yield + (last yield − first yield) × (k − 1) ÷ (rungs − 1). Flat mode uses the first yield for every rung.
- Every bond is assumed to be bought at face value, so the coupon equals the yield. Interest is paid annually: annual interest = amount × yield.
- Total interest to maturity = annual interest × years to maturity of that rung. Average yield is the simple mean of the rung yields; average maturity is the mean maturity.
- Reinvestment, bond prices before maturity, fees, taxes, defaults and early redemption are not modelled. Estimates only, not advice.
Results are estimates based on the figures you enter. They are not guarantees and not financial advice.
How a bond ladder spreads risk and cash flow
A bond ladder divides an investment into equal parts and buys bonds that mature one after another, for example one, two, three, four and five years from now. Each year a rung matures and returns principal, which can be spent or reinvested at the longest maturity to keep the ladder going. Because only a part of the money is exposed to any one year's rates, a ladder reduces the risk of locking in everything at a poor yield. Longer bonds usually pay higher yields, so the average yield sits between the shortest and longest rungs. This tool shows the income and the maturity schedule.