Enter a goal savings amount, annual interest rate, compounding frequency, and number of periods. The calculator will evaluate and display the required monthly payment to reach the savings goal.

## Sinking Fund Formula

The following formula is used to calculate the periodic payment amount to reach a savings goal.

PMT = FV * i / (1+i)^n – 1

- Where PMT is the periodic payment
- FV is the savings goal amount
- n is the number of periods
- I is the annual interest rate or return

## What is a sinking fund?

A sinking fund is a financial term that describes a periodic payment to a savings fund in order to reach a certain savings amount. In other words, if you want to save 30,000 over 5 years, the sinking fund would be the amount you need to contribute each year or period.

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