Sinking funds calculator
Sinking funds turn the bills that "come out of nowhere" — annual premiums, gifts, repairs — into small monthly amounts. List them once and see exactly what to set aside each month.
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Same bills, very different months
Three example bills: $1,200 insurance in March, $900 of car work in August, $800 of gifts in November. Toggle to see what your budget feels like with and without sinking funds.
Nine calm months and three that break the budget — the classic reason savings get raided.
What belongs in a sinking fund
Anything that is predictable but not monthly. Go through last year's bank statements and pick out the big one-off debits. Typical funds:
- Annual or six-monthly insurance premiums, car registration, subscriptions billed yearly
- Car maintenance, tyres and repairs
- Home maintenance — a common rule of thumb is 1–2% of the home's value a year
- Gifts, birthdays and holidays
- Medical deductibles and dental work
- Replacing a phone or laptop
- Travel and back-to-school costs
Bigger, one-time goals such as a house deposit deserve their own goal in the tracker, where you can log deposits and watch progress against a date.
Questions people ask
What is a sinking fund?
Money you set aside a little at a time for a specific expense you know is coming — an annual insurance premium, holiday gifts, a car repair, a new laptop. When the bill arrives, the money is already there.
How is a sinking fund different from an emergency fund?
An emergency fund is for the unexpected: job loss or a medical bill. A sinking fund is for the expected, even if the exact date or amount is fuzzy. Keeping them apart stops planned spending from draining your safety net.
How do I calculate a sinking fund?
Take the expected cost, subtract anything already saved, and divide by the months until you need it. A $1,200 annual premium due in 12 months is $100 a month.
Where should I keep sinking funds?
Many banks let you open several free savings "buckets" or sub-accounts under one high-yield account, which makes each fund visible. One account with a spreadsheet — or this page — works too.
How many sinking funds should I have?
As many as you have irregular, predictable costs, but most people start with four to eight: car, insurance, gifts, travel, home maintenance, medical deductibles, pets and technology.