🏦 Sinking Fund Calculator
Enter your savings goal, expected annual interest rate, and time frame to find how much you need to deposit each month to reach your target.
What is a sinking fund?
A sinking fund is a savings strategy where you set aside equal periodic deposits, which earn interest over time, to reach a specific future goal — such as replacing equipment, paying off a bond, or funding a large purchase.
How this calculator works
This calculator solves for the required periodic deposit using the sinking fund formula: PMT = FV × r ÷ [(1 + r)n – 1], where FV is your target amount, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of monthly deposits. It also shows the total amount you’ll deposit versus how much comes from interest.
- Deposits are assumed to be made monthly, at the end of each month.
- A higher interest rate or longer time frame reduces the size of the deposit needed to reach the same goal.
This calculator is for general educational and planning purposes only and is not financial advice.