About the Sinking Fund Calculator
A sinking fund is money set aside in regular payments to meet a known cost later, such as a loan repayment, a roof or a new vehicle. This calculator works out the payment you need to make each time to reach your target in the time you have, assuming the savings earn a steady rate of interest. It also shows how much you pay in and how much the interest adds. Type the target amount, the interest rate, the years and how often you pay in and the sinking fund payment appears at once, with a few related figures underneath, and you can copy the result with one tap. The sums run in your browser, so nothing you enter is uploaded.
Updated October 2026
How to use the Sinking Fund Calculator
- 1Enter the target amount, the interest rate, the years and how often you pay in.
- 2Pick the units or options from the menus if the sinking fund payment tool offers them.
- 3Read the sinking fund payment in the large result box.
- 4Look at the extra rows for related figures.
- 5Press Copy result to keep the answer.
When you need the sinking fund payment
Companies use it to prepare for debt repayment, landlords and housing associations use it for repairs, and families use it for large planned costs.
Paying more often helps a little, and starting earlier helps a lot, because the interest has more time to work. With a zero rate, the payment is just the target divided by the number of payments.
How the sinking fund payment is worked out
Payment = target × i ÷ ((1 + i)^N − 1), where i is the rate per payment period and N is the number of payments. Payments are made at the end of each period. To reach 100,000 in 10 years at 5%, paying once a year, you pay 7,950.46 each year. That is 79,504.60 paid in and 20,495.40 earned as interest.
Every answer on this page comes from that one rule, so you can check any result by hand with a calculator. The figures shown underneath, such as other units, are conversions of the same answer.
- Six payment frequencies
- Interest earned shown
- Handles zero rate
Mistakes to avoid with sinking fund payment
The rate is not guaranteed, so allow a margin. The tool does not include tax or fees, and it does not adjust for inflation, which raises the real cost of the target.
On phone and computer
On a phone, type into the boxes one after another and read the sinking fund payment underneath; Copy result puts it on the clipboard for a message or a note. On a computer the inputs sit on the left and the answer on the right, so you can change one figure and watch the sinking fund payment move. The sinking fund calculator works the same on both.
Checking your sinking fund payment by hand
A good habit is to test the sinking fund calculator with a case you already know. To reach 100,000 in 10 years at 5%, paying once a year, you pay 7,950.46 each year. That is 79,504.60 paid in and 20,495.40 earned as interest.
If your own figures give a surprising answer, repeat the working yourself: Payment = target × i ÷ ((1 + i)^N − 1), where i is the rate per payment period and N is the number of payments. Payments are made at the end of each period. Small differences usually come from rounding, from mixing units, or from a typing slip in one of the inputs. A sinking fund saves toward a target, and other money tools look at the same goal. Use the Future Value Calculator for growth, the Annuity Calculator for regular payments, and the Investment Time Calculator for how long it takes.
Features
- Rate is not guaranteed
- No tax or fees included
- Start early
- Clear messages when the sinking fund payment inputs make no sense
- Copy the result with one tap
- Private: nothing is uploaded
Frequently asked questions
How do I calculate sinking fund payment?
Payment = target × i ÷ ((1 + i)^N − 1), where i is the rate per payment period and N is the number of payments. Payments are made at the end of each period. To reach 100,000 in 10 years at 5%, paying once a year, you pay 7,950.46 each year. That is 79,504.60 paid in and 20,495.40 earned as interest.
What is the formula for sinking fund payment?
Payment = target × i ÷ ((1 + i)^N − 1), where i is the rate per payment period and N is the number of payments. Payments are made at the end of each period. The sinking fund calculator applies it exactly and rounds only the displayed answer to six significant figures.
What is a sinking fund?
Money set aside regularly to pay a known future cost.
Is it the same as a savings plan?
It is a savings plan with a fixed goal and date.
What if the rate is zero?
Then divide the target by the number of payments.
Is this sinking fund calculator free and private?
Yes. It is free, needs no account and runs in your browser, so the numbers you type are not uploaded or stored.