🪣Sinking Fund Calculator

About this tool

List each upcoming expense with its cost, how much you've already saved and the date you need it. Set the interest rate your savings earn. The calculator shows the months left, what's still to save and the monthly amount for each fund, plus one total to transfer every payday.

Why sinking funds work

Many "unexpected" expenses are really predictable: annual car insurance and servicing, holidays, birthdays and Christmas, school fees, a new phone or laptop, home and appliance repairs, and vet bills. A sinking fund spreads each one over the months before it's due, so when the bill arrives the money is already there and nothing goes on a credit card. For each fund, the monthly amount is what you still need divided across the months remaining, slightly less if the money earns interest in the meantime. For example, £900 of car insurance due in six months with £150 already saved needs about £124 a month at 3%. Add up all your funds for a single monthly figure, set up a standing order on payday, and keep the money separate, either in a savings account with named pots or one account with a simple tally. This differs from an emergency fund, which covers genuine surprises like job loss and should be left untouched, and from general savings goals, which may not have a fixed date. Review the funds when a cost changes, and roll any leftover into next year's. Honest limits: months are counted as whole calendar months, rates may change, and interest may be taxable. Works in any currency. The savings goal calculator, the budget planner and the emergency fund calculator are related, and How to set a savings goal: the arithmetic, the interest, and the habits that make it stick has more tips.

Frequently asked questions