Work out sinking fund contribution instantly with clear inputs, formula shown and shareable results.
A sinking fund saves deliberately for a known future cost — a car replacement, a roof, a school fee. Crediting what you already hold first, the monthly contribution is the annuity payment that closes the remaining gap.
Sinking fund
Monthly = [Target - B(1+r)^n] / {[((1+r)^n - 1)/r](1+r)}
Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.
Saving earns interest; borrowing pays it. On a predictable expense the sinking fund is strictly cheaper.
Match the asset to the horizon — deposits for under three years, a conservative mix beyond that.