Sinking Fund Calculator (Monthly Saving for a Future Cost)
Enter the target amount, the date it is due and the interest rate to find the monthly deposit.
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Sinking Fund Calculator (Monthly Saving for a Future Cost) by TheCalcTools
How the Sinking Fund Calculator (Monthly Saving for a Future Cost) works
A sinking fund sets money aside regularly so a known future cost is paid without borrowing. The deposit is the payment whose future value, plus what you already have, equals the target: D = (target − FV of savings) × i ÷ ((1 + i)^n − 1).
Businesses use sinking funds to repay bonds; households use them for cars, holidays, insurance premiums and home repairs.
The formula
Worked example
Using the default values shown in the calculator:
| Target amount | $15000 |
|---|---|
| Months until it is needed | 36 |
| Interest earned (yearly) | 4 % |
| Already saved | $2000 |
- To have 15,000 in 36 months at 4%, with 2,000 saved, deposit $333.81 a month.
Result:
| Monthly deposit | $333.81 |
|---|---|
| Total you deposit | $12,017.22 |
| Interest earned | $982.78 |
| Current savings grow to | $2,254.54 |
Frequently asked questions
How is this different from an emergency fund?
An emergency fund is for unknown costs. A sinking fund is for a known cost on a known date.
Sources and further reading
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This calculator gives estimates for information only. It is not financial advice, and your lender's or provider's figures will govern. Rates, fees and rules vary. See our disclaimer.