Sinking Fund Calculator

A sinking fund builds a target sum through equal periodic deposits, with interest doing part of the work. It is the mirror image of loan amortization. The computation rests on PMT = future value × r ÷ ((1 + r)^n − 1). To have 50,000 in 4 years at 6% annual (r = 0.005, n = 48): PMT = 50,000 × 0.005 ÷ ((1.005)^48 − 1) = 50,000 × 0.005 ÷ 0.2705 ≈ 925 per month, of which interest contributes about 5,600. Each input you type is substituted the instant you release the key, and the result is expressed in exactly the units or currency you chose.

1. 1

   Step 1

   Start with the primary figures the Sinking Fund Calculator asks for.

2. 2

   Step 2

   Your values are substituted into PMT = future value × r ÷ ((1 + r)^n − 1).

3. 3

   Step 3

   Read off the computed result.

4. 4

   Step 4

   Vary one input at a time to see its effect.

• Using nominal annual r

• Ignoring the interest earned

• Missing deposits