Sinking Fund Calculator
Find the monthly amount to set aside so a future expense is fully funded by the date you need it.
Quick answer
A sinking fund is a regular saving set aside to reach a target by a date. The payment is (target - current savings x (1 + i)^n) x i / ((1 + i)^n - 1), where i is the monthly rate and n the number of months.
Sinking Fund Calculator
Required Monthly Contribution
—
Total Contributions
—
Interest Earned
—
Current Savings at Target Date
—
Shortfall to Fund
—
Fund Progress
| Period | Contributed (₹) | Interest (₹) | Balance (₹) |
|---|
Assumptions & method
- Monthly rate i = annual rate ÷ 12, compounded monthly. Number of deposits n = months until needed.
- Shortfall = target − current savings × (1 + i)^n.
- End-of-month deposits: payment = shortfall × i ÷ ((1 + i)^n − 1). Start-of-month deposits: that amount ÷ (1 + i). At 0% the payment is shortfall ÷ n.
- Interest in the table includes growth on your current savings. Contributions exclude the savings you already hold.
- The rate is fixed. Inflation, tax and fees are not included. Results are estimates.
Results are estimates based on the figures you enter. They are not guarantees and not financial advice.
How a sinking fund works
A sinking fund spreads a large future cost over many small, regular deposits. Instead of finding the whole amount at once, you save a fixed sum every month and let interest cover part of the gap. This calculator starts from your target and the time you have, grows any savings you already hold at the expected rate, and works out the monthly contribution that closes the remaining shortfall. You can choose whether deposits happen at the start or end of each month. The table tracks the balance so you can check progress along the way.