GIC Laddering Strategy Calculator
Create a GIC laddering strategy by spreading your investments across multiple GIC terms. This balances returns and liquidity while minimizing risk.
Create Your GIC Laddering Strategy
Enter your investment details to see how to allocate your funds across different GIC terms for optimal returns and liquidity.
How to Use This Calculator
Step 1: Enter Total Investment
Enter the total amount you want to invest across all GICs. This will be automatically divided equally among the number of GICs you select.
Step 2: Select Number of GICs
Choose how many different GICs you want in your ladder (2-6). More GICs provide more frequent liquidity but may require smaller individual investments.
Step 3: Set Term Lengths and Rates
For each GIC, enter the term length (in months) and the interest rate. Typically, longer terms offer higher rates. Common laddering strategies use 6, 12, 18, 24, or 36-month terms.
Step 4: Choose Reinvestment Option
Select whether you want to reinvest the principal and interest when each GIC matures, or keep them separate. Reinvestment compounds your returns over time.
Step 5: Set Start Date
Enter the date when you plan to start your GIC ladder. This is used to calculate maturity dates for each GIC.
Understanding the Results
GIC Allocation: Shows how your investment is divided across each GIC, including the amount, term, rate, interest earned, and maturity date.
Liquidity Schedule: Shows when each GIC matures and how much money becomes available at each maturity date. This helps you plan for future cash needs.
Chart: Visualizes when each GIC matures, helping you see the liquidity pattern of your laddering strategy.
⚠️ Important Disclaimer
This calculator provides estimates for educational purposes. Actual GIC rates and terms vary by financial institution. Always review the terms and conditions of your GIC products and consult with a financial advisor for personalized advice.