Sinking Fund Calculator
Pick a goal and a date. See exactly how much to put aside each month to get there.
Quick answer
A sinking fund is money you save a little at a time for a known future cost. Monthly saving = (goal − amount already saved) ÷ months left. To have 6,000 in 12 months with 500 already saved, put aside about 458.33 a month — or 448.32 if the account pays 4% interest.
Any currency.
0 if kept as cash.
Save each month
448.32
- Save each week
- 103.46
- Total you deposit
- 5,379.89
- Interest earned
- 120.11
Deposits at the end of each month, interest compounded monthly.
Monthly saving needed, starting from zero, 4% interest
| Goal | 6 months | 12 months | 24 months | 36 months |
|---|---|---|---|---|
| 1,000 | 165 | 82 | 40 | 26 |
| 2,500 | 413 | 205 | 100 | 65 |
| 5,000 | 826 | 409 | 200 | 131 |
| 10,000 | 1,653 | 818 | 401 | 262 |
| 20,000 | 3,306 | 1,636 | 802 | 524 |
How it works
A sinking fund turns a big, predictable bill into small monthly amounts. Instead of paying for next year's car insurance, a holiday, school fees or a new laptop with a credit card, you divide the cost by the months you have left and save that much each month in a separate pot.
It is different from an emergency fund. An emergency fund covers things you cannot predict, like losing your job. A sinking fund covers things you can — you know roughly what they will cost and when. Most budgets have several: one each for the car, gifts, travel and home repairs.
If you keep the money in an account that pays interest, it does some of the work for you; the calculator includes that. Over longer periods the interest adds up — see how much with the compound interest calculator, or check how fast a rate doubles money with the rule of 72. Saving toward a house deposit? Pair this with the mortgage calculator to see the monthly payment you are working toward.
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Frequently asked questions
What is a sinking fund?
Money saved in small regular amounts for a specific future expense, so you can pay it in full when it arrives instead of borrowing.
Sinking fund vs emergency fund — what is the difference?
A sinking fund is for planned costs you can see coming. An emergency fund is for surprises. You need both, kept separately.
Where should I keep a sinking fund?
In an easy-access savings account that pays interest, separate from your everyday account so you do not spend it by accident.