Sinking Funds Calculator

How to use it

A sinking fund is money you set aside a little at a time for a cost you can see coming: a six-month insurance bill, holiday gifts, car repairs or a trip. Instead of one big hit, the cost is spread across the paychecks between now and the due date. This calculator does that split for you.

1. Pick how often you're paid

Choose Weekly, Every two weeks, Twice a month or Monthly. The calculator uses an average number of paychecks per month: 52 ÷ 12 for weekly pay, 26 ÷ 12 for every-two-weeks pay, 2 for twice a month and 1 for monthly. Because weekly and every-two-weeks pay are averaged over the year, some real months have an extra paycheck.

2. Add your goals

Add one row per goal:

• Goal: a name, such as "Car insurance".
• Target: the full amount you'll need.
• Saved so far: anything already set aside for it.
• Needed by: the date you need the money.

The row then shows Months left and the amount to set aside per paycheck. Use + Add a goal for more rows. A goal with no date shows "add a date" until you pick one.

3. Read the totals

Under the table you'll see Still needed, all goals, the total to set aside per paycheck, and roughly what that comes to per month.

How the math works

For each goal, still needed = target − saved so far (never below $0). Months left counts whole calendar months from today to the date, and a month only counts once its day of the month is reached. Per paycheck = still needed ÷ (months left × paychecks per month). Per month = still needed ÷ months left. Both are rounded up to the cent, so the plan never comes up a few cents short. If the date is less than a month away, the whole amount still needed shows as due now.

4. Size an emergency fund

The emergency fund section works a little differently. Enter:

• Essential costs per month: rent, food, utilities, insurance and minimum debt payments, for example.
• Months to cover: how many months of essentials you'd like the fund to cover. Three to six months is a range people often use; the number is up to you.
• Saved so far and You can add per month.

You'll see the target (essential costs × months to cover), what's still to save, how many months of essentials your savings cover today (rounded down to a tenth of a month), and the time to reach it at your monthly amount, rounded up to a whole month.

Keep in mind

These are planning estimates. The per-paycheck figure assumes you set aside the same amount from every paycheck until the due date, and it doesn't include interest your savings might earn. Weekly and every-two-weeks pay are averaged, so the real number of paychecks before a date can be a little higher or lower than the calculator's count.

Worked example

These are the numbers loaded by Try an example, paid every two weeks, with each date set that many months from today:

• Car insurance (6-month bill): $720 target, $120 saved, due in 6 months. $600 still needed over 13 paychecks: $46.16 per paycheck ($100 a month).
• Holiday gifts: $900 target, $150 saved, due in 12 months. $750 over 26 paychecks: $28.85 per paycheck ($62.50 a month).
• Car repairs: $1,000 target, $400 saved, due in 10 months. $600 over about 21.7 paychecks: $27.70 per paycheck ($60 a month).
• Vacation: $1,500 target, nothing saved, due in 9 months. $1,500 over 19.5 paychecks: $76.93 per paycheck ($166.67 a month).

Still needed across all goals: $3,450. Set aside per paycheck: $179.64, which is about $389.17 a month.

Emergency fund: $2,800 of essential costs a month × 3 months = an $8,400 target. With $1,500 saved, $6,900 is still to save. $1,500 covers 0.5 months of essentials today, and adding $250 a month reaches the target in 28 months.

FAQ

What's the difference between a sinking fund and an emergency fund?

A sinking fund is for a cost you know is coming, with a rough amount and date. An emergency fund is a cushion for costs you can't predict, so it's measured in months of essential expenses instead of a due date.

Why is the per-paycheck amount rounded up?

Rounding up to the next cent means that if you set aside that amount every time, you reach the target instead of landing a few cents short.

I'm paid every two weeks. Why doesn't the paycheck count match my calendar?

The calculator averages 26 paychecks over 12 months (about 2.17 a month). Your real count before a date depends on where your paydays fall, so it can differ a little.

Does this include interest on my savings?

No. The amounts assume no interest or growth, which keeps the estimate simple.

Is my information saved?

No. Nothing you type is stored by the site or sent anywhere; the calculator runs in your browser and clears the form each time the page loads.