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Sinking funds calculator
Save a little every month for the big costs you know are coming, so they stop wrecking the month they land in.
Short answer: a sinking fund is money saved monthly for a known future cost. For each cost, divide what you still need by the months until it is due, then add the results together. That total is what to set aside every month, on top of your regular budget.
Common sinking funds
- Car: insurance, servicing, tyres, registration.
- Home: repairs, appliances, yearly fees.
- Gifts and holidays: birthdays, the end-of-year season, weddings.
- Travel: the summer trip, visiting family.
- Yearly bills: annual subscriptions, memberships, school costs.
- Health: dentist, glasses, a new phone when the old one gives up.
Running sinking funds without spreadsheets
- Move the total on payday. One transfer into one savings account.
- Track each fund by name. On paper, in the printable budget template, or in an app.
- Pay the bill from the fund. When the cost arrives, take it from its fund, not from this month's spending money.
Frequently asked questions
What is a sinking fund?
A sinking fund is money you set aside a little at a time for a cost you know is coming, like car insurance, holiday gifts or a yearly subscription. When the bill arrives, the money is already there.
How is a sinking fund different from an emergency fund?
An emergency fund is for costs you cannot predict, like losing your job. A sinking fund is for costs you can see coming but that do not arrive every month.
How much should I put in each sinking fund?
Divide what you still need for the cost by the number of months until it is due. The calculator does this for each fund and adds them up.
Where do I keep sinking funds?
Many people use one savings account and track each fund on paper or in an app. Some banks let you split one account into named pots, which makes it easier.
Related free tools
Savings goal calculator
How much to save each month, or how long a goal will take.
Emergency fund calculator
Your safety-net target from essential costs, and how long it takes to build.
Subscription cost calculator
Add up streaming, apps and memberships per month and per year.
Printable budget template
One-page monthly budget sheet: fill it in on screen, then print.