Sinking Fund Calculator
Turn a known future expense into a monthly contribution, while accounting for money already set aside.
Use this for a known future cost such as an insurance premium, repair, holiday, or annual fee.
Your inputs stay on this page and are not saved.
$2,000.00 remains after the amount already saved.
- Contributions
- 10
- Final contribution
- $200.00
How the calculation works
Remaining cost = upcoming expense minus money already set aside, with a minimum of zero. Monthly contribution = remaining cost ÷ contributions left, rounded up to the next cent.
This is a cash contribution plan with no interest or investment return. The final contribution is adjusted so the total does not exceed the target.
Reference: CFPB: Savings plan tool
Sinking Fund Calculator FAQs
What is a sinking fund?
A sinking fund is money set aside gradually for a known future expense. Examples include an annual insurance bill, vehicle repair, holiday spending, or a planned home expense.
How do I calculate a monthly sinking fund contribution?
Subtract money already reserved from the expected expense, then divide the remainder by the number of contributions left. The calculator rounds up to the next cent.
Is a sinking fund the same as an emergency fund?
No. A sinking fund prepares for a known or expected cost. An emergency fund protects against uncertain events and income disruptions.
Where should I keep sinking fund money?
Use an account or category where the money remains accessible for its deadline and can be clearly separated from everyday spending. Consider fees, withdrawal limits, and deposit insurance.
What if I miss a contribution?
Enter the current amount saved and the smaller number of contributions remaining. The monthly requirement will increase unless you lower the target or move the deadline.
Should I include interest in the plan?
This calculator leaves interest out for a conservative contribution plan. If your account earns interest, the actual final contribution may be slightly smaller.