Sinking Fund

Free Sinking Fund calculator with clear step-by-step results.

About Sinking Fund

A sinking fund spreads a large known future cost into regular deposits.

Formula

Monthly saving = annuity payment to reach the goal

Worked example

With the default values below, Sinking Fund returns Monthly Saving Needed of $943.98. Change any input above and every figure here is recalculated in your browser.

Inputs used

Savings goalminimum 0 $: 12,000 $
Months to reach itaccepts 1–1,200: 12
Starting balanceminimum 0 $: 500 $
Annual interestaccepts 0–15: 3

Results

Monthly Saving Needed: $943.98
Months Until Goal: 12.2
Interest Earned: $0.00

Step by step

1Values used
2Formula
3Monthly Saving Needed= $943.98
4Months Until Goal= 12.2
5Interest Earned= $0.00

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax or fees or charges into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

How does this calculator work?