TIPS Ladder Calculator — Inflation-Protected Income
NewBuild a TIPS ladder from current Treasury prices: which TIPS to buy for each year, what the ladder costs today, and how the 2037-2039 gap years are covered.
By Konstantin Iakovlev · Updated September 2026 · Source: TreasuryDirect — Treasury Inflation-Protected Securities (TIPS); Treasury FedInvest prices
Cost of the ladder today
$785,854
Withdrawal rate, year one
5.09%
Average real yield
2.97%
$40,000 a year for 30 years (2027-2056) costs $785,854 at Treasury prices of Sep 25, 2026. Every dollar is in today's purchasing power: the payments rise with inflation.
What to buy
| Year | TIPS (maturity, coupon, CUSIP) | Bonds | Cost | Real income |
|---|---|---|---|---|
| 2027 | Jul 15, 2027, 0.375% 9128282L3 | 20 | $26,981 | $39,452 |
| 2028 | Jul 15, 2028, 0.75% 912828Y38 | 21 | $27,184 | $39,984 |
| 2029 | Jul 15, 2029, 0.25% 9128287D6 | 22 | $27,029 | $40,558 |
| 2030 | Jul 15, 2030, 0.125% 912828ZZ6 | 22 | $26,198 | $40,419 |
| 2031 | Jul 15, 2031, 0.125% 91282CCM1 | 23 | $25,546 | $40,386 |
| 2032 | Jan 15, 2032, 0.125% 91282CDX6 | 24 | $25,340 | $40,588 |
| 2033 | Jan 15, 2033, 1.125% 91282CGK1 | 25 | $25,554 | $39,527 |
| 2034 | Jul 15, 2034, 1.875% 91282CLE9 | 27 | $27,128 | $40,077 |
| 2035 | Jul 15, 2035, 1.875% 91282CNS6 | 28 | $27,141 | $39,923 |
| 2036 | Jan 15, 2036, 1.875% 91282CPU9 | 30 | $28,472 | $39,755 |
| 2037 | Gap year: extra Jul 15, 2036 ×23 + Feb 15, 2040 ×6 | 29 | $30,518 | ≈ target |
| 2038 | Gap year: extra Jul 15, 2036 ×15 + Feb 15, 2040 ×13 | 28 | $32,567 | ≈ target |
| 2039 | Gap year: extra Jul 15, 2036 ×6 + Feb 15, 2040 ×19 | 25 | $32,259 | ≈ target |
| 2040 | Feb 15, 2040, 2.125% 912810QF8 | 21 | $29,266 | $39,487 |
| 2041 | Feb 15, 2041, 2.125% 912810QP6 | 22 | $29,936 | $39,889 |
| 2042 | Feb 15, 2042, 0.75% 912810QV3 | 23 | $24,099 | $39,848 |
| 2043 | Feb 15, 2043, 0.625% 912810RA8 | 24 | $23,544 | $40,480 |
| 2044 | Feb 15, 2044, 1.375% 912810RF7 | 24 | $26,051 | $39,664 |
| 2045 | Feb 15, 2045, 0.75% 912810RL4 | 25 | $23,286 | $40,359 |
| 2046 | Feb 15, 2046, 1% 912810RR1 | 25 | $23,879 | $39,831 |
| 2047 | Feb 15, 2047, 0.875% 912810RW0 | 26 | $23,247 | $40,231 |
| 2048 | Feb 15, 2048, 1% 912810SB5 | 27 | $23,854 | $40,486 |
| 2049 | Feb 15, 2049, 1% 912810SG4 | 27 | $23,007 | $39,392 |
| 2050 | Feb 15, 2050, 0.25% 912810SM1 | 28 | $18,490 | $39,705 |
| 2051 | Feb 15, 2051, 0.125% 912810SV1 | 29 | $17,626 | $40,464 |
| 2052 | Feb 15, 2052, 0.125% 912810TE8 | 31 | $17,169 | $40,409 |
| 2053 | Feb 15, 2053, 1.5% 912810TP3 | 33 | $25,564 | $39,992 |
| 2054 | Feb 15, 2054, 2.125% 912810TY4 | 35 | $30,264 | $40,320 |
| 2055 | Feb 15, 2055, 2.375% 912810UH9 | 36 | $31,906 | $39,478 |
| 2056 | Feb 15, 2056, 2.375% 912810US5 | 38 | $32,749 | $39,618 |
| Total | $785,854 | |||
One bond = $1,000 of original principal. It costs more than $1,000 because the principal has already grown with inflation (index ratio) and because of accrued interest. Prices are Treasury FedInvest prices of Sep 25, 2026; a broker's ask is usually a little higher, so treat the total as an estimate.
No TIPS mature in 2037, 2038, 2039. The ladder covers those years with extra bonds maturing just before and just after the gap, weighted so their combined duration matches: you hold the early bond's cash and sell some of the later bond in each gap year. When Treasury issues new 10-year TIPS maturing in those years, you can swap into them.
Buying: existing TIPS are bought through a brokerage account on the secondary market by CUSIP. TreasuryDirect sells TIPS only at auction (5-, 10- and 30-year terms, from $100).
Taxes: the yearly inflation increase in principal is taxable federal income in the year it happens, even though you receive it only at maturity. That is why ladders are usually held in a traditional or Roth IRA. TIPS interest is exempt from state and local income tax.
At maturity you receive the inflation-adjusted principal or the original principal, whichever is greater. Single TIPS calculator
Use the TIPS Ladder Calculator — Inflation-Protected Income above to calculate your results. Enter your values and see instant results — all calculations run in your browser.
Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.
How It Works
A TIPS ladder turns a lump sum into a fixed stream of inflation-adjusted income. You buy Treasury Inflation-Protected Securities that mature in each year you need money, so every year a bond repays its CPI-adjusted principal along with its last coupons. Held to maturity, the income does not depend on what stock or bond markets do, and Treasury guarantees at least the original principal.
The calculator builds the ladder backward, the method Wade Pfau described in 2013. It starts with the last year and buys enough of the TIPS maturing then to cover the target. It then moves one year earlier and subtracts the coupons the later bonds will pay in that year. Within a year it picks the bond with the lowest cost per dollar of income. Prices are Treasury's FedInvest prices with index ratios from TreasuryDirect, so the total is what the ladder costs today before a broker's markup.
No TIPS mature between July 2036 and February 2040, so 2037, 2038 and 2039 are gap years. They are covered with extra bonds maturing just before and just after the gap, weighted so their combined duration matches a bond that would mature in the gap year. They can be swapped once Treasury issues 10-year TIPS maturing then. The yearly inflation increase in principal is taxable federal income even though it is paid only at maturity, which is why ladders usually sit in an IRA.
Example: $40,000 a Year for 30 Years
- 1 Input: $40,000 a year in today's dollars from 2027 through 2056, at Treasury prices of September 25, 2026.
- 2 First rung: the cheapest 2027 bond per dollar of income is the July 2027 TIPS (0.375% coupon). 20 bonds of $1,000 original principal cost $26,981, because each already carries an index ratio of 1.365.
- 3 Gap years: 2037-2039 are covered with 44 extra July 2036 bonds and 38 extra February 2040 bonds, split by duration.
- 4 Result: the whole ladder costs $785,854. That is a 5.09% first-year withdrawal rate that keeps its purchasing power for 30 years, at an average real yield of 2.97%.
Source: TreasuryDirect — Treasury Inflation-Protected Securities (TIPS); Treasury FedInvest prices · Last updated: September 2026
Frequently Asked Questions
How much does a TIPS ladder cost?
What are the TIPS ladder gap years?
Where do I buy TIPS for a ladder?
Should a TIPS ladder be held in an IRA?
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