Bond ladder calculator

Build a fixed-rate bond ladder from coupon rates and yields. The calculator prices every rung, buys whole bonds, and shows cost, unused cash, annual coupon income, maturity principal and duration.

CurrencyFormatting only; no exchange-rate conversion.
Total amount availableIncludes bond prices and the entered transaction fee.
Number of rungsUse 2–10 maturity dates.
Face value per bondEach rung buys whole bonds of this denomination.
Shortest maturity (years)
Years between maturitiesThe default ladder matures in years 1, 2, 3, 4 and 5.
Coupon payments per yearEvery maturity must contain a whole number of coupon periods.
Transaction fee per bondAdded to the purchase cost of each whole bond.
Annual coupon rate for each rung (%)Enter one nonnegative rate per rung, separated by commas, spaces, semicolons or new lines.
Nominal annual YTM for each rung (%)Each yield is compounded at the selected coupon frequency. A leading minus sign is accepted for a negative yield.

Total purchase cost—

Cash not allocated—

Annual coupon income—

Total face value—

Weighted YTM—

Modified duration—

Rung	Maturity	Coupon	YTM	Price / bond	Bonds	Cost with fees	Annual income	Principal at maturity

How this bond ladder works

The available amount is divided into equal target budgets. Each rung uses a different maturity, coupon rate and yield to maturity. The calculator first prices one fixed-rate bond, adds the transaction fee, and then buys the largest whole number that fits within that rung’s target budget. Any remainder stays as unallocated cash.

This makes the result different from a CD ladder. A CD is normally entered at its deposit amount and grows at an APY. A marketable bond can trade above or below face value, pays coupons, and returns face value at maturity if the issuer pays as promised.

Bond pricing and ladder formulas

Bond price = Σ [coupon payment ÷ (1 + YTM ÷ m)^t] + [face value ÷ (1 + YTM ÷ m)ⁿ]

Here, m is coupon payments per year and n is remaining coupon periods. Coupon payment equals face value × annual coupon rate ÷ m.

Whole bonds in a rung = floor(target budget ÷ [bond price + fee])
Annual coupon income = whole bonds × face value × coupon rate

Weighted YTM and modified duration use the market value of the bonds in each rung as weights. The entered fee is included in cash usage but not in the market-value weights.

Checked example

With US$50,000, five annual maturities from one through five years, US$1,000 face value, semiannual coupons of 3.00%–4.00%, YTMs of 4.00%–4.40% and a US$1 fee per bond, the tool prices every rung independently and buys only whole bonds. The displayed unused cash is the exact difference between US$50,000 and all prices plus fees.

How to interpret the results

Total purchase cost is clean modeled price plus per-bond transaction fees. It never exceeds the entered amount.
Annual coupon income is the contractual coupon amount for one full year, not a forecast of total return.
Principal at maturity is face value scheduled for that rung. It excludes the final coupon to avoid mixing recurring income with principal.
Weighted YTM summarizes entered yields using current modeled market value. It is not the exact portfolio internal rate of return when maturities differ.
Modified duration estimates small parallel yield sensitivity. A value of 3.2 means roughly a 3.2% price move in the opposite direction for a one-percentage-point yield change, before convexity.

Assumptions and limits

Settlement is on a coupon date. Accrued interest, clean-versus-dirty price, day-count conventions and settlement delays are excluded.
Bonds are fixed-rate, noncallable and held to maturity. The model excludes default, calls, taxes, inflation adjustments, credit spreads, bid-ask spreads and coupon reinvestment.
Coupon rates and YTMs are user inputs, not live market quotes. The same denomination and payment frequency apply to every rung.
The model requires at least one whole bond in every rung. If a target budget is too small, increase the total or reduce the denomination, fee or number of rungs.
Results are educational estimates, not investment advice or a recommendation to buy any bond.

Related calculators

Use the Bond Price Calculator for one bond’s price, YTM and duration; the CD Ladder Calculator for staggered certificates of deposit; the APY Calculator to compare nominal and effective annual yields; and the Tax Equivalent Yield Calculator for a municipal-versus-taxable comparison.