Bond Ladder Builder

Build a bond ladder with equal rungs, calculating per-rung investment, income, and duration.

Financial Disclaimer

This calculator is for educational purposes only and does not constitute financial advice. Results are estimates based on the inputs provided. Consult a qualified financial advisor before making investment or financial planning decisions.

Inputs

Total investment ($)

Number of rungs

Shortest maturity (yrs)

Longest maturity (yrs)

Average yield (%)

Tab to move between fields

Results

Per-rung investment ($)

$10,000.00

≈ 7 months of rent

Annual income ($)$2,250.00

Monthly income ($)$188.00

Weighted avg maturity (yrs)3

Average duration (yrs)2.87

Reinvestment cycle (months)12

How to Use This Calculator

Enter your total investment amount and the number of ladder rungs (bonds maturing at different dates).
Set the shortest and longest maturity in years to span your desired income timeline.
Input the average yield percentage across the bonds you plan to purchase.
Review Per Rung Amount to see how much goes into each maturity bucket.
Check Annual Income and Monthly Income to confirm the ladder generates the cash flow you need.

How the result changes with Total investment ($)

Total investment ($)	Per-rung investment ($)
1,000,900	$200,180.00
3,500,650	$700,130.00
6,500,350	$1,300,070.00
9,000,100	$1,800,020.00

What each input means

Total investment ($): Total amount to invest in the bond ladder.
Number of rungs: Number of bonds in the ladder.
Shortest maturity (yrs): Maturity of the nearest bond.
Longest maturity (yrs): Maturity of the farthest bond.
Average yield (%): Expected average coupon yield.

What each result means

Per-rung investment ($): Amount allocated to each bond rung.
Annual income ($): Total annual interest income.
Monthly income ($): Average monthly interest income.
Weighted avg maturity (yrs): Average maturity across all rungs.
Average duration (yrs): Interest rate sensitivity measure.
Reinvestment cycle (months): How often a bond matures for reinvestment.

How this is calculated

Worked example, using the default values

Identify Input Parameters
4 parameters
Total investment ($) = 50000, Number of rungs = 5, Shortest maturity (yrs) = 1, Longest maturity (yrs) = 5 = 5 input(s) provided
Calculate Per-rung investment
Per-rung investment = round(totalInvestment / rungs)
10000 = $10,000
Calculate Annual income
Annual income
2250 = $2,250
Calculate Monthly income
Monthly income
188 = $188