Sinking Fund For Society Calculator

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

About Sinking Fund For Society Calculator

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.

Formulas

Fund growth

Each year: balance = (balance + annual contribution) x (1 + interest rate)

Annual contribution

Contribution = construction cost x annual rate

Worked example

With the default values below, Sinking Fund For Society Calculator returns Fund value at the end of the period of $6,287,239.19. Change any input above and every figure here is recalculated in your browser.

Inputs used

Construction cost of the buildingminimum 0.01: 60,000,000
Annual contribution rateaccepts 0.01–5 %: 0.75 %
Accumulation periodaccepts 1–100 years: 10 years
Interest earned on the fundaccepts 0–20 %: 6 %

Results

Fund value at the end of the period: $6,287,239.19
Annual contribution: $450,000.00
Total contributions: $4,500,000.00
Interest earned: $1,787,239.19

Step by step

1Values used
2Fund growth
3Annual contribution
4Fund value at the end of the period= 6,287,239.19
5Annual contribution= 450,000.00
6Total contributions= 4,500,000.00
7Interest earned= 1,787,239.19

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 or tax 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.

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 is the Sinking Fund For Society figure worked out?

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.

Why base it on construction cost rather than market value?

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.

What values do I need to enter?

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.