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Sinking Fund Contribution Calculator

Work out sinking fund contribution instantly with clear inputs, formula shown and shareable results.

About Sinking Fund Contribution Calculator

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.

Formula

Sinking fund

Monthly = [Target - B(1+r)^n] / {[((1+r)^n - 1)/r](1+r)}

Worked example

With the default values below, Sinking Fund Contribution Calculator returns Monthly Contribution Needed of $12,121.63. Change any input above and every figure here is recalculated in your browser.

Inputs used

Amount Neededminimum 0
2,000,000
Already Savedminimum 0
250,000
Expected Annual Returnaccepts 0–100 %
7 %
Years Until Neededaccepts 1–40
8

Results

Monthly Contribution Needed
$12,121.63
Growth Of What You Have
$436,956.61
Total You Will Contribute
$1,163,676.36
Contribution From Returns
$399,367.03

Step by step

  1. 1Values used
  2. 2Sinking fund
  3. 3Monthly Contribution Needed= 12,121.63
  4. 4Growth Of What You Have= 436,956.61
  5. 5Total You Will Contribute= 1,163,676.36
  6. 6Contribution From Returns= 399,367.03

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.
  • 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.
  • 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.

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.

Frequently Asked Questions

Why not just borrow when the cost arrives?

Saving earns interest; borrowing pays it. On a predictable expense the sinking fund is strictly cheaper.

Where should the money sit?

Match the asset to the horizon — deposits for under three years, a conservative mix beyond that.

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