Sinking Fund Calculator

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

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.

Keeping several funds at once? Print the free tracker: one card per fund, with the goal, due date and monthly amount, twelve boxes to log deposits and a bar to color in.

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.