Simple Income Ladder Calculator  Switch to the Detailed Version

Instructions

  1. Enter your desired annual income amounts in the first row.  You do not need to enter amounts for all 10 years.  For example if you want to create a 5-year income ladder, enter your desired income amounts for the first 5 years.  

  2. Enter the annual yield rates available for each corresponding maturity in the second row.  For example if you will be funding your income ladder with bank certificates of deposit (CDs), and your bank offers:

1.8% annual percent yield (APY) on CDs held for one year
2.5% annual percent yield (APY) on CDs held for two years, etc.

Enter the APY values in the second row.  Enter a yield rate below each non-zero income amount.  In other words a 5-year income ladder requires 4 yield rates.  You can find current yield rates at: Bankrate.com

  1. Finally choose whether you would like to withdraw interest annually or let interest accrue to maturity.  You can try both options to determine which one results in a lower total cost to fund the income ladder.  Always click one of the buttons to recalculate the income ladder after making changes to either the income amounts or the yield rates.  The calculator assumes that the first year's income will be met with cash.

Income Ladder Calculator

Step 1. Enter your desired annual income amounts for up to 10 years

                     
  Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Desired Income

$ $ $ $ $ $ $ $ $ $
 

Step 2. Enter the available annual yield rates

(Enter a yield rate below each non-zero income amount.  For example a 5-year income ladder requires 4 yield rates.)

                     
   
Investments
Maturing
After
1 Year
Investments
Maturing
After
2 Years
Investments
Maturing
After
3 Years
Investments
Maturing
After
4 Years
Investments
Maturing
After
5 Years
Investments
Maturing
After
6 Years
Investments
Maturing
After
7 Years
Investments
Maturing
After
8 Years
Investments
Maturing
After
9 Years

Annual Yield Rates

  % % % % % % % % %
        

Step 3. Select the type of income ladder

   

                     
                     
The cash and investments needed are as follows: 
                     
  Cash
1-Year
Investments
2-Year
Investments
3-Year
Investments
4-Year
Investments
5-Year
Investments
6-Year
Investments
7-Year
Investments
8-Year
Investments
9-Year
Investments
Investments Needed $ $ $ $ $ $ $ $ $ $
 

 

 

The total capital needed is:

$

                     
                     
The total income provided from a combination of interest, principal, and cash is: 
                     
  Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Total Actual Income $ $ $ $ $ $ $ $ $ $
                     

Disclaimer: This calculator assumes that investments will be purchased at par value (purchase price equals the maturity value).  This is generally the case for newly issued fixed-rate investments.  This calculator should not be used for investments that will be purchased at a discount or premium to their maturity value.  While we have strived to create a robust calculator, IncomeLadders.com does not guarantee the accuracy of the calculations or their suitability for any particular purpose.  The user of the calculator assumes full responsibility for determining whether the calculator will achieve the results desired by the user. The user assumes full responsibility for selecting all investments under the user's plan.

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