How the sinking fund calculator works
For each fund, the calculator takes your goal, subtracts what you've already saved, and divides the rest by the number of pay periods left before the due date.
Amount per period = (goal − saved so far) ÷ periods until the due date
It then adds up every fund, so you know the one number to move into savings each payday.
How to use it
- Choose how often you save: monthly, twice a month, every two weeks or weekly.
- Edit the starter funds or add your own. Give each a goal amount and the month you need the money.
- Enter anything you've already saved toward a fund.
- Read your total per period, then set up an automatic transfer for that amount.
A worked example
You want $600 for holiday gifts in 10 months and you've saved $100. You still need $500, so you set aside $50 a month.
Add a $1,200 car insurance premium due in 6 months and that fund needs $200 a month. Your total is $250 a month across both funds. That's far easier than finding $1,200 in a single paycheck.
Sinking fund categories worth setting up
- Car: repairs, tires, registration and annual insurance
- Home: maintenance, appliances, property tax
- Gifts and holidays: birthdays, weddings and year end celebrations
- Travel: flights, hotels and spending money
- Health: dental work, glasses and deductibles
- Kids and school: uniforms, fees, camps and supplies
- Annual subscriptions: software, memberships and domain renewals
Fit sinking funds into your budget
Treat the total as a fixed bill. In a zero based budget, add one line per fund. In a 50/30/20 budget, sinking funds sit inside the 20% savings bucket, or under needs when the cost is essential, like insurance.
Frequently asked questions
What is a sinking fund?
A sinking fund is money you save a little at a time for a specific cost you know is coming, such as car repairs, holiday gifts, insurance premiums or a vacation. When the bill arrives, the cash is already there.
How is a sinking fund different from an emergency fund?
An emergency fund covers surprises like a job loss or a medical bill. A sinking fund covers costs you can predict. Keeping them separate stops planned expenses from draining your safety net.
How many sinking funds should I have?
Most households do well with four to eight. Start with the costs that hurt most when they land, usually car repairs, gifts, annual insurance and travel. Add more once the habit sticks.
Where should I keep sinking fund money?
A separate savings account works well because the money stays out of sight but easy to reach. Many banks let you create named sub accounts, one per fund. Cash envelopes also work for smaller goals.