Finance

Sinking Fund Calculator

Find how much to save periodically to reach a target amount.

Required Periodic Deposit
Total Deposited
Interest Earned
Formula:
PMT = FV × r / ((1 + r)n − 1)
Where r = rate per period, n = total periods

What is a Sinking Fund?

A sinking fund is a savings strategy where you make regular deposits to accumulate a specific amount by a future date. Corporations use sinking funds to set aside money for bond repayment. Individuals use them for planned large purchases like a car, vacation, or home down payment.