Sinking fund calculator: how much to save per month
Enter a goal and a date. Get the exact amount to set aside each payday.
Quick examples:
Runs in your browser. Nothing is stored or uploaded.
Good sinking fund goals
- Car: insurance, tires, an annual service, repairs. Take last year's total and divide by twelve.
- Home: appliance replacement, property tax, a repair buffer.
- Annual subscriptions and memberships that charge once a year.
- Gifts and holidays: list the occasions and add them up, then start in January instead of October.
- Travel: flights and the first night's stay are usually due months before you leave.
- Taxes for freelancers: set aside a fixed share of each payment.
Example
Your car insurance is $720 every six months, due on 1 March. It is now November and you have saved nothing. With four months left, you need $180 a month. If you wait until January it is $360 a month for two months, which is the same money but a much heavier squeeze. That is the whole case for starting early, even with an imperfect number.
Using it in a budget
Add each goal as a sinking-fund envelope in your budget and assign the monthly amount at every payday, just like rent. In Sealed, sinking funds sit in their own section, show their target and due date, and the monthly amount is suggested for you. New to envelopes? Start with the envelope budgeting guide, or split a paycheck with the paycheck splitter.
FAQ
What is a sinking fund?
A sinking fund is money you set aside gradually for a known future expense, so the bill is already covered when it arrives.
How is the monthly amount calculated?
The calculator takes the goal minus what you have saved, divides by the number of payments between today and the due date, and rounds up to the next cent.
Should I put sinking funds in a separate account?
It can help because the money is out of sight, but it is not required. Envelopes in a budget app work the same way.
Does interest matter?
For goals under two years in a savings account the interest is small compared with the amount you save. The calculator ignores it, which leaves you slightly ahead.