The strength of cross laminated timber (CLT) depends on the stiffness and strength of the lamellas and on thestrength of the finger joints. A model for how stiffness and strength vary along and between lamellas is used incombination with a finite element model of CLT and Monte Carlo simulations to calculate out-of-plane bendingstrength of homogeneous and inhomogeneous CLT. Calculated and experimentally obtained results of characteristicbending strengths, coefficient of variation of bending strength and the proportion of finger joint failures,agree very well for both types of CLT. The characteristic out-of-plane bending strength and the mean bendingstiffness were 23% and 16% higher, respectively, for inhomogeneous CLT with outer layer lamellas graded in thestrength class C35, compared to homogeneous CLT with all lamellas graded in the class C24. Simulation resultsgive basis for simple equations by which bending strength of CLT can be determined as function of the layup, thestrength class of outer layer lamellas and characteristic strength of the finger joints. Furthermore, system effectsare investigated. For inhomogeneous CLT, with outer layer lamellas of high strength class, the system effects turnout to be quite different from those of ordinary, homogeneous CLT.