Sinking Fund Calculator

A sinking fund is a fund formed by setting aside a certain amount of money periodically so that you have enough to pay for some large expense in the future.
For example, suppose you want to contribute a certain amount of money each month to a sinking fund so that you have $10,000 by the end of one year to afford to buy a new car in cash. The following formula can help you determine how much you should contribute to the fund each month:
Required contribution = total * interest / ((1 + interest)periods-1)
where
  • total is the total amount you wish to accumulate.
  • interest is the interest rate you earn on your savings.
  • periods is the total number of periods you wish to make contributions in.
To calculate the required contribution for each period to accumulate a certain amount of money in a sinking fund, simply fill in the values below and then click the “Calculate” button.

Required Contribution each period: $741.41


Zach

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