What is a sinking fund?

A sinking fund is money set aside regularly to save for a planned future expense — like a car, vacation, or appliance. Regular monthly savings + interest accumulate toward the target by a set date.

Sinking Fund Calculator

Estimate periodic savings needed for a future expense.

This tool runs in your browser. None of your data is saved or sold.

Target amount ($)

Years to save (years)

Annual interest rate (%)

Already saved ($)

About This Calculator

A sinking fund is a savings account dedicated to a specific future expense — car insurance, home repairs, vacation, a new laptop. Instead of being surprised by large irregular costs, you spread them out as small monthly contributions. This calculator tells you exactly how much to set aside each month.

Estimates only — not financial, tax, legal, or investment advice. Verify important results with a qualified professional before making decisions.

monthly = (goal − existing) × r ÷ ((1+r)^N − 1) where r = annual rate ÷ 12, N = years × 12; total contributions = monthly × N; interest earned = goal − existing − total contributions