Work out sinking fund for society instantly with clear inputs, formula shown and shareable results.
A sinking fund accumulates for major periodic works: structural repairs, lift replacement, waterproofing and external painting. Statutory guidance commonly sets the contribution at 0.25 to 0.75 percent of construction cost a year. Because the fund is invested, interest compounds and contributes a meaningful share of the eventual balance.
Fund growth
Each year: balance = (balance + annual contribution) x (1 + interest rate)
Annual contribution
Contribution = construction cost x annual rate
Each year: balance = (balance + annual contribution) x (1 + interest rate). A sinking fund accumulates for major periodic works: structural repairs, lift replacement, waterproofing and external painting.
Because the fund pays for repairs to the structure, and repair cost tracks construction cost. Market value moves with land, which is irrelevant to maintenance liability.
This calculator takes 4 inputs: Construction cost of the building, Annual contribution rate, Accumulation period, Interest earned on the fund. The pre-filled defaults are a realistic worked example — replace them with your own site or project figures.