Detailed Income Ladder Calculator  Switch to the Simple Version

Instructions

  1. Enter your desired annual income amounts in the first row.  You do not need to enter amounts for all 15 years.  For example if you want to create a 10-year income ladder, enter your desired income amounts for the first 10 years.  

  1. 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 10-year income ladder requires 9 yield rates.  You can find current yield rates at: Bankrate.com

  2. 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.

The Total Interest Income row shows how much interest will be available for income at the beginning of each year.  The Principal Income row shows how much matured principal will be available for income at the beginning of each year.  The Principal Income row also represents the purchase price of the investments needed.  The calculator assumes that investments will be purchased at par value, or in other words that the purchase price equals the maturity value (see disclaimer).  It also assumes that the first year's income will be met with cash.  The total capital needed to fund the income ladder is the sum of the Principal Income values, including the first year's cash income.

Income Ladder Calculator

Step 1. Enter your desired annual income amounts for up to 15 years

  Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15

Desired Income

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $
       (Cash) 

Step 2. Enter the annual yield rates available for investments that mature as indicated

(Enter a yield rate below each non-zero income amount.  For example a 10-year income ladder requires 9 yield rates.)

   
After
1 Year
After
2 Years
After
3 Years
After
4 Years
After
5 Years
After
6 Years
After
7 Years
After
8 Years
After
9 Years
After
10 Years
After
11 Years
After
12 Years
After
13 Years
After
14 Years

Annual Yield Rates

  % % % % % % % % % % % % % %
        

 

                Step 3. Select the type of income ladder  
Interest Income  

Year 2

 

         

 

From:

1-Year Investments   $

Year 3

2-Year Investments $ $

Year 4

 

3-Year Investments $ $ $

Year 5

 

Total Capital Needed to Fund the Income Ladder

4-Year Investments $ $ $ $

Year 6

 (including the first year's cash income)

5-Year Investments $ $ $ $ $

Year 7

$

6-Year Investments $ $ $ $ $ $

Year 8

7-Year Investments $ $ $ $ $ $ $

Year 9

8-Year Investments $ $ $ $ $ $ $ $

Year 10

9-Year Investments $ $ $ $ $ $ $ $ $

Year 11

10-Year Investments $ $ $ $ $ $ $ $ $ $

Year 12

11-Year Investments $ $ $ $ $ $ $ $ $ $ $

Year 13

12-Year Investments $ $ $ $ $ $ $ $ $ $ $ $

Year 14

13-Year Investments $ $ $ $ $ $ $ $ $ $ $ $ $

Year 15

14-Year Investments $ $ $ $ $ $ $ $ $ $ $ $ $ $
   
Total Interest Income $ $ $ $ $ $ $ $ $ $ $ $ $ $
                               
                               
Principal Income $ $ $ $ $ $ $ $ $ $ $ $ $ $ $
(Investments Needed)
 

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.

Copyright 2009-2017 IncomeLadders.com. All Rights Reserved.