// savings planning

Sinking Fund Calculator

Set a savings goal and find your required contribution — or tell us what you can save and discover when you'll reach your goal.

Your Goal

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Target Amount

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Target Date

Your Savings Plan

Enter your goal and click Calculate to see your savings plan.

What Is a Sinking Fund?

A sinking fund is money you set aside consistently over time for a specific, future expense — things like a car, vacation, holiday gifts, home repair, or annual insurance premium. Instead of scrambling or going into debt when the bill arrives, a sinking fund means the money is already there.

The name comes from accounting: businesses "sink" money into a fund to retire debt or cover future obligations. For personal finance, it's simply a dedicated savings bucket with a target and a deadline.

How the Calculation Works

Remaining = Target − Amount already saved Monthly contribution = Remaining ÷ Months until goal Biweekly contribution = Remaining ÷ (Months × 26 / 12) Weekly contribution = Remaining ÷ (Months × 52 / 12)

Common Sinking Fund Goals

Holiday gifts — start in January, save a fixed amount each month until December.
Car insurance — if you pay annually, divide the premium by 12 and save that each month.
Vacation — pick your trip date and total budget, then calculate the monthly savings needed.
Home repairs — most experts recommend saving 1–2% of your home's value annually for maintenance.
New device or upgrade — instead of buying on credit, save for it first.

Sinking Fund vs Emergency Fund

An emergency fund covers unexpected expenses — job loss, medical bills, unexpected car repair. A sinking fund covers expected future expenses. Both are important and serve different purposes. Use an emergency fund calculator to size your safety net separately from sinking funds.

Save for Goals Automatically

Hunter Vault's Money Vaults let you create dedicated savings buckets with targets and progress tracking. Reach goals faster by watching your progress grow. Free, offline, private.

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This calculator provides savings estimates for informational purposes only. Results do not account for interest earned on savings, inflation, or changing circumstances. This is not financial advice.