Bond Ladder Calculator
Build a bond ladder for predictable retirement income. See the ladder structure, income stream, and comparison to bond funds.
Investment Details
Ladder Structure
Yield Assumptions
Bond Ladder Score
Excellent bond ladder setup for reliable retirement income.
After-Tax Income
$20,183/yr
Average Yield
5.18%
Total Interest
$148,500
Annual Coupon Income
$25,875
before taxes
After-Tax Income
$20,183
$9,818 shortfall
Total Interest Earned
$148,500
over 10 years
Average Yield
5.18%
weighted avg maturity: 5.50 yr
Annual Income Stream
Coupon income and maturity proceeds by year
Maturity Allocation
Investment split by maturity zone
Total
$500,000
Short-Term (1-4 yr)
40%$200,000/yr
Medium-Term (5-7 yr)
30%$150,000/yr
Long-Term (8-10 yr)
30%$150,000/yr
Yield by Maturity
Coupon rate across ladder rungs
Ladder Total Return
$648,500
over 10 years
Bond Fund Total Return
$718,584
with 0.5% expense ratio
Ladder Advantage
$-70,084
fund may be better
Ladder Structure
Individual bond rungs with maturity dates and yields
| Rung | Maturity | Face Value | Yield | Annual Income | Total Interest |
|---|---|---|---|---|---|
| #1 | 2027 | $50,000 | 4.50% | $2,250 | $2,250 |
| #2 | 2028 | $50,000 | 4.65% | $2,325 | $4,650 |
| #3 | 2029 | $50,000 | 4.80% | $2,400 | $7,200 |
| #4 | 2030 | $50,000 | 4.95% | $2,475 | $9,900 |
| #5 | 2031 | $50,000 | 5.10% | $2,550 | $12,750 |
| #6 | 2032 | $50,000 | 5.25% | $2,625 | $15,750 |
| #7 | 2033 | $50,000 | 5.40% | $2,700 | $18,900 |
| #8 | 2034 | $50,000 | 5.55% | $2,775 | $22,200 |
| #9 | 2035 | $50,000 | 5.70% | $2,850 | $25,650 |
| #10 | 2036 | $50,000 | 5.85% | $2,925 | $29,250 |
Personalized Insights
Actionable recommendations based on your numbers
Significant Income Gap
Your after-tax income of $20,183 falls $9,818 short of your $30,000 annual need. You may need to invest $743,200 total to reach your goal.
Yield Curve Advantage
Your 10-year ladder captures a 1.35% yield spread from short to long maturities, with an average yield of 5.18%.
Bond Fund May Be Comparable
A bond fund could provide similar returns with greater liquidity. The ladder advantage is minimal at current yields. Consider your need for predictability vs. flexibility.
Consider Reinvesting Maturities
With a 10-year ladder, reinvesting maturing bonds extends your income stream beyond the initial ladder period and helps maintain purchasing power against inflation.
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