How much does a TIPS ladder cost?
The cost depends on how much spending you need, when it begins, how long it lasts, and the yields and prices available. The table below isolates the effect of the assumed real yield and length of the plan.
Ten, twenty and thirty years of spending
Every example targets $40,000 a year in today's dollars, beginning in 2027, with a 2026 model reference year. Each uses a flat real-yield assumption and the website's annual coupon/par-purchase approximation. These are planning estimates, not executable bond quotes.
| Years | Flat real yield | Estimated cost | Missing-maturity rows | Reproduce |
|---|---|---|---|---|
| 10 | 1.00% | $378,852 | 0 | Use this example |
| 10 | 2.00% | $359,303 | 0 | Use this example |
| 10 | 3.00% | $341,208 | 0 | Use this example |
| 20 | 1.00% | $721,822 | 3 | Use this example |
| 20 | 2.00% | $654,057 | 3 | Use this example |
| 20 | 3.00% | $595,099 | 3 | Use this example |
| 30 | 1.00% | $1,032,308 | 3 | Use this example |
| 30 | 2.00% | $895,858 | 3 | Use this example |
| 30 | 3.00% | $784,018 | 3 | Use this example |
Calculated with the published annual par model. Download assumptions and results.
The 20- and 30-year examples include hypothetical costs for the 2037–2039 missing maturities. The price of a real strategy for those years is not locked by the estimate. Read how to handle the gaps.
What the table does and does not hold constant
Holding the income target and start year constant makes it easier to see the yield effect. Higher positive yield assumptions reduce the model's required starting principal because coupons contribute more to spending. Changing the start date, cash-flow pattern or curve shape changes the result.
The model does not select CUSIPs, include actual premiums and discounts, account for settlement index ratios or accrued interest, or model your taxes. It also does not credit coupons received before the first target year against cost.
Why the estimate is less than total spending
A ladder uses principal repayments and coupons together. Under a flat 2% assumption, the three-year worked example costs $115,355.33 to provide $120,000 of modeled cash flow. The difference comes from modeled coupons, not from creating principal out of nothing.
Follow the full cash-flow reconciliation. The ladder's principal is consumed as planned spending occurs, so the last year is not a promise of a remaining account balance.
Try a different spending target
With the same years and positive yield assumptions, this model scales proportionally for a level income target. A $20,000 target has half the modeled cost of the corresponding $40,000 target. Taxes, minimum trading quantities and actual quotes can make implementation less exact.
For changing annual needs, use the calculator's per-year inputs. A bridge period before another source of income begins should not automatically be modeled as level spending for thirty years.
Turn the estimate into a purchase budget
Choose an example using its calculator link, then inspect every assumption. Compare the result with a current maturity inventory and reconcile actual settlement costs. Read the methodology, particularly for low or negative yields.
For a real purchase, use Treasury's published index ratios and interest calculations alongside the security's quoted price. The cost table above is an original model calculation; it is not a Treasury price quotation.
The Ladder Builder workbook is a reusable planning companion. It is a fixed 2026 edition and should be checked alongside current market information.
