Bond Ladder Calculator
2026 rulesPlan a bond ladder and compare Treasuries, munis and corporates after tax.
Your numbers
Result
Yearly interest
- Per rung$20,000
- Interest after tax$6,232
- After-tax yield3.12%
- Fully taxable yield that would match it4.32%
- Principal returned each year$20,000
Maturity schedule
| Year | Bond matures | Interest that year |
|---|---|---|
| 2027 | $20,000 | $8,200 |
| 2028 | $20,000 | $7,380 |
| 2029 | $20,000 | $6,560 |
| 2030 | $20,000 | $5,740 |
| 2031 | $20,000 | $4,920 |
| 2032 | $20,000 | $4,100 |
| 2033 | $20,000 | $3,280 |
| 2034 | $20,000 | $2,460 |
| 2035 | $20,000 | $1,640 |
| 2036 | $20,000 | $820 |
How it works
Buy bonds that mature one per year across the ladder's length. Each maturity returns principal you can spend or reinvest, which makes a ladder a common way to fund the years before Social Security.
Treasury interest skips state tax, in-state municipal bonds are usually tax-free federally and by your state, and corporate bonds and CDs are fully taxable. The taxable-equivalent yield shows what a fully taxable bond would have to pay to match.
2026 figures: TreasuryDirect Series I rate chart.
Questions
Should I use TIPS for a ladder?
TIPS ladders protect against inflation, because principal rises with CPI. The inflation adjustment is taxable each year even though you get it at maturity.
What if rates change?
If you hold each bond to maturity, price changes along the way don't affect the money you get back.