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Finance Calculators

Sinking Fund Calculator

Verified formula Updated Jun 2026 Private — runs on your device

Enter details
₹
%
10 years
1 years40 years
Verified formula Private

Annual deposit needed

₹69,029

For general information only — not financial, tax, legal or medical advice. Verify before you rely on it.

How to use the Sinking Fund Calculator

The Sinking Fund Calculator works out your annual deposit needed in an instant. Enter target amount, annual interest rate and time to reach target and the result updates as you type — it is free, needs no sign-up, and runs entirely in your browser so your figures stay private.

  1. Enter the target amount.
  2. Enter the annual interest rate.
  3. Set the time to reach target.
  4. Read off your annual deposit needed — the calculator updates automatically, with no button to press.

Formula

The Sinking Fund Calculator uses the formula:

Annual deposit needed = Target amount × (Annual interest rate ÷ 100) ÷ ((1 + Annual interest rate ÷ 100)^(Time to reach target) - 1)

Worked example

For example, with target amount of ₹1,000,000, annual interest rate of 8% and time to reach target of 10 years, the annual deposit needed is ₹69,029.

Inputs used
Target amount ₹1,000,000
Annual interest rate 8%
Time to reach target 10 years
Results
Annual deposit needed ₹69,029

Results are estimates for educational use, not professional advice.

Key terms explained

Interest rate
The percentage charged on a loan or paid on savings, usually quoted per year (per annum).

Frequently asked questions

It is money set aside regularly to reach a future target, such as replacing equipment or repaying a debt.

It uses the future-value-of-an-annuity formula in reverse. To reach 10,00,000 in 10 years at 8%, you deposit about 69,029 a year.

A sinking fund plans a fixed deposit so you arrive at exactly the target on time, with interest doing part of the work.

Yes. A higher rate or longer time means interest covers more of the target, reducing the deposit you need to make.

Enter the target amount. Enter the annual interest rate. Set the time to reach target. Read off your annual deposit needed — the calculator updates automatically, with no button to press.

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