Bond Ladder Cash-Flow Planner
Build a monthly and yearly calendar that separates coupon income from principal returned at maturity.
Your inputs
Use consistent units and periods. Defaults are examples.
Your result
Check the assumptions below before relying on a result.
Formula and method
For each holding, coupon payment = face × annual coupon rate ÷ frequency. Place coupon payments every 12/frequency months until maturity and return face value once at maturity. Sum monthly cash flows by coupon and principal separately. Receipts minus purchase cost is a nominal held-to-maturity cash difference, not an annualized return.
Worked example
Two 1,000 face holdings with annual coupons of 5%, purchased for 1,000 each, maturing in one and two years with annual payments, produce 100 coupons plus 1,000 principal in year one and 50 coupons plus 1,000 principal in year two. Total coupon income is 150; the 2,000 principal is returned capital.
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Open calculator ↗How to use this result
- Enter each holding using total face value and total purchase cost.
- Use maturity months aligned with the selected payment interval.
- Review coupon income separately from maturing principal.
- Check concentration in a single year before assuming a ladder creates evenly spaced cash.
- Export both monthly and annual cash-flow tables; choose rollover investments separately.
Questions about this calculation
Are maturing bond proceeds income?
Only the interest component is coupon income in this planner. Redeemed face value is shown separately as principal.
Does the ladder reinvest maturing principal?
No. Automatic rollover would require future rates and decisions that are not supplied.
Does a ladder eliminate investment risk?
No. This cash-flow model assumes contractual payments occur and does not evaluate credit risk, market price risk or suitability.