T-Bill Ladder Strategy Calculator
A T-Bill ladder splits your investment across multiple T-Bills of different durations so one always matures soon — giving you regular cash flow while earning competitive yields on the rest. Enter your details below to build your personalized ladder.
Minimum $1,000 — will be split equally across each rung of your ladder.
Use the current T-Bill auction rate from TreasuryDirect.gov. Applied to all rungs.
Investment split equally across 4 rungs of different maturities.
Used to calculate maturity dates for each rung.
Why Use a T-Bill Ladder?
Putting all your cash into a single T-Bill locks everything up until maturity. A ladder solves this by staggering your maturities — so you always have cash becoming available while the rest keeps earning.
💧 Liquidity
Lump Sum: All cash locked until one date
Ladder: Cash available regularly ✔
📈 Rate Averaging
Lump Sum: Locked at one rate
Ladder: Captures rising rates ✔
🔄 Flexibility
Lump Sum: No flexibility until maturity
Ladder: Adjust each rung at maturity ✔
🛡️ Risk
Lump Sum: Full interest rate risk
Ladder: Spread across rate cycles ✔
How the T-Bill Ladder Works
Step 1 — Split Your Investment
Divide your total investment equally. To start the ladder so cash flows every month, you must purchase staggered durations for your first rungs (e.g., a 4-week, 8-week, 12-week, and 16-week bill). This creates the 'staircase' effect immediately.
Step 2 — Buy Each Rung
Purchase each T-Bill through TreasuryDirect.gov or a brokerage like Fidelity or Schwab. You can set them to auto-reinvest at maturity.
Step 3 — Reinvest at Maturity
When the shortest T-Bill matures, reinvest it into the longest available duration (typically 52-week). Over time, all four rungs become 52-week T-Bills maturing at regular intervals — giving you the highest yield with predictable cash flow.
Setting Up Auto-Roll
On TreasuryDirect, you can enable auto-reinvestment so each maturing T-Bill automatically purchases a new one of the same duration — zero manual work required. Most brokerages (Fidelity, Schwab, Vanguard) also offer auto-reinvestment for T-Bills.
Choosing Your Ladder Type
| Ladder Type | Rungs | Cash Available | Best For |
|---|---|---|---|
| 4-Week Ladder | 4 × 4-week T-Bills | Every 4 weeks (~monthly) | Maximum liquidity, active cash management |
| 8-Week Ladder | 4 × 8-week T-Bills | Every 8 weeks (~bi-monthly) | More frequent liquidity than 13-week |
| 13-Week Ladder | 4 × 13-week T-Bills | Every 13 weeks (quarterly) | Quarterly planning, less active management |
| 17-Week Ladder | 4 × 17-week T-Bills | Every 17 weeks (~4 months) | Medium-term cash needs |
| 26-Week Ladder | 4 × 26-week T-Bills | Every 26 weeks (semi-annual) | Higher yield, semi-annual liquidity |
| 52-Week Ladder | 4 × 52-week T-Bills | Every 52 weeks (Annual) | Maximum yield, long-term savings |
| Mixed Ladder | 4W + 13W + 26W + 52W | Staggered — 4W first, then quarterly | Best balance — most popular for beginners |
Related Calculators
New to T-Bills? Read the foundation guide:
What Are Treasury Bills — Complete Guide
Comparing options?
Are T-Bills Worth It? ·
Best T-Bill Duration Guide
Frequently Asked Questions
What is a T-Bill ladder strategy?
A T-Bill ladder splits your investment across multiple T-Bills of different durations so one always matures soon. For example, $40,000 split into four $10,000 T-Bills maturing at 4, 13, 26, and 52 weeks gives you regular access to cash while the rest keeps earning.
What are the benefits of a T-Bill ladder?
A ladder provides three key benefits: regular liquidity (cash available at each maturity), rate averaging (captures changing rates across multiple auctions), and reduced interest rate risk (you are never fully locked into one rate for a long period).
How do I set up a T-Bill ladder on TreasuryDirect?
Log in to TreasuryDirect.gov, go to BuyDirect, and purchase T-Bills of your chosen durations with staggered start dates. Enable auto-reinvestment on each T-Bill so it automatically rolls over at maturity. The entire ladder can run on autopilot once set up.
Is a T-Bill ladder better than buying one T-Bill?
For most investors, yes. A ladder gives you regular cash flow, hedges against rate changes in both directions, and over time converts all rungs to the highest available yield. The only downside is slightly more setup effort upfront.