Sinking fund calculator
Businesses and households use it to set aside a fixed amount each period so the full sum is ready on time.
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How to use it
- Enter target amount, annual interest rate, term, deposit frequency and payment timing.
- The result appears straight away and updates as you edit.
- Copy the result, or copy a link that keeps the same values to share it.
How it is calculated
i = r/n, N = years × n. Deposit = Target × i / ((1+i)^N − 1), divided by (1+i) for start-of-period deposits. At 0%: Target / N.
Example
Inputs: Target amount = 50,000 your currency, Annual interest rate = 4 %, Term = 5 years, Deposit frequency = Monthly, Payment timing = End of each period. Result: Deposit per period: 754.16; Total deposits: 45,249.57; Interest earned: 4,750.43.
Limits and caveats
- Assumes a fixed return and equal, uninterrupted deposits.
- The target is nominal; add inflation if the cost will rise.
Questions about this tool
What is a sinking fund?
Money set aside in fixed amounts to cover a large known cost on a known date, such as repaying bonds or renewing an asset.
How is it different from a savings goal?
Same idea, but this tool starts from zero, lets you pick deposit frequency and timing, and shows a yearly table.
Why is the deposit smaller when paid at the start?
Each deposit earns one extra period of interest, so slightly less is needed to reach the target.