Sinking Fund (SF) Calculator

Calculate sinking fund contributions. Enter target amount, interest & time period to determine contribution needed with our Sinking Fund Calculator.

Result Contribution $0 U S S F_factor 0

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Contribution Formula

Contribution = Money to accumulate * (Interest / ((Interest + 1) ^ (Compound frequency * Period) - 1 ))

$100,000 * (0.05 / ((0.05 + 1) ^ (12 * 10) - 1)) = $14.37

U S S F_factor Formula

Ussf Factor = Contribution / Money to accumulate

USSF Factor = $25 / $10,000 = 0.0025.

Meaning

A Sinking Fund (SF) is a fund set aside to pay for future expenses, such as loan repayments or capital expenditures. It's a reserve of money that accumulates over time, allowing you to gradually pay off debts or cover large costs without having to make a single lump payment.