Finance

Sinking Fund Calculator

Set aside the right amount each month for a known future cost.

Enter your values

ⓘ Live results

Results
Monthly deposit
$457.32
Weekly equivalent
$105.53
Total you deposit
$8,231.70
Interest earned
$268.30
Existing savings at the deadline
$530.87

Quick answer

A sinking fund spreads a known future cost across the months before it lands: deposit = goal ÷ the future value factor of a monthly savings stream.

PMT = FV × r ÷ ((1 + r)^n − 1)

How to use the Sinking Fund Calculator

  1. 1Enter the total cost you are saving toward.
  2. 2Enter how many months you have before the bill lands.
  3. 3Add any money already set aside and the rate your savings earn.

Worked example

Using the values the calculator loads with:

Inputs

  • Amount you need9000 $
  • Months until you need it18
  • Interest rate on savings4 %
  • Already set aside500 $

Results

  • Monthly deposit$457.32
  • Weekly equivalent$105.53
  • Total you deposit$8,231.70
  • Interest earned$268.30
  • Existing savings at the deadline$530.87

Frequently asked questions

What is a sinking fund used for?

Predictable, lumpy costs — insurance renewals, car tyres, property tax, Christmas — that wreck a monthly budget when they arrive all at once.

Where should the money sit?

In a separate high-yield savings account named for the goal, so it earns interest and is not spent by accident.

About this calculator

Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.