Sinking Fund Calculator

Calculate regular payments needed to reach your financial goals. Plan for future expenses, debt repayment, or savings targets.

✓ Regular Payments ✓ Goal Planning ✓ Interest Growth

Sinking Fund Calculator

Calculate

Fund Details

Amount you want to accumulate

Expected annual return

Years to reach your goal

Payment Options

Sinking Fund Formula

Future value of annuity calculation

Formula:

PMT = FV / [((1 + r)^n - 1) / r]
Where PMT = Payment, FV = Future Value, r = rate per period, n = number of periods

Quick Examples

Emergency Fund
$10,000 in 2 years at 3%
Car Purchase
$25,000 in 5 years at 5%
House Down Payment
$100,000 in 10 years at 6%

Benefits

Disciplined Saving: Regular deposits build habits
Interest Growth: Earn returns on deposits
Goal Achievement: Reach specific targets
Debt Avoidance: Pay cash instead of borrowing

Sinking Fund Tips

🎯 Set Clear Goals: Define specific targets
📅 Automate Deposits: Set up automatic transfers
📈 Choose Right Account: High-yield savings or CDs
🔄 Review Regularly: Adjust as needed
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Understanding Sinking Funds

A sinking fund is a strategic savings approach where you make regular deposits to accumulate money for a specific future expense or goal.

  • Planned Savings: Systematic approach to reach goals
  • Interest Earnings: Money grows over time
  • Debt Prevention: Avoid borrowing for planned expenses
  • Financial Discipline: Builds consistent saving habits

Common Uses

Emergency Fund

Build 3-6 months of expenses for unexpected situations.

Major Purchases

Save for cars, appliances, or home improvements.

Vacation Fund

Plan and save for dream vacations or travel.

Education Costs

Save for tuition, books, and education expenses.