Sinking Fund Calculator
A sinking fund is money set aside regularly to cover a known future expense or replace an asset. Enter your goal amount, time horizon, and expected interest rate to see how much you need to contribute each period.
About this calculator
Calculate how much to set aside periodically to reach a future savings target, such as for a car replacement, property tax bill, or business asset purchase.
Frequently Asked Questions
What is a sinking fund?
A sinking fund is a savings strategy where you set aside money regularly to accumulate a specific amount by a future date, often used for large planned expenses like replacing equipment or a down payment.
How is the contribution calculated?
The calculator uses the future value of an annuity formula, solving for the periodic payment needed to reach your goal given the interest rate and time horizon.
What if I earn no interest?
If your rate is 0%, the calculator simply divides your goal amount evenly across the number of periods.