Sinking Funds Calculator: Plan Your Monthly Savings
Use this sinking funds calculator to list predictable upcoming expenses, enter each target amount, add what you have already saved, and set a due date. It calculates the exact amount to save each month for every fund, helping you prepare for planned costs without dipping into your emergency savings.
What is a sinking fund?
A sinking fund is money you put aside gradually for a specific expense you know is coming — Christmas, a holiday, car repairs, insurance premiums, a new phone. Instead of getting hit with a €1,500 bill in December, you save €125/month starting in January.
How is a sinking fund different from an emergency fund?
An emergency fund is for unexpected events (job loss, medical bill, urgent car repair). A sinking fund is for expenses you can predict on the calendar. Keep them separate — mixing them makes it too tempting to raid the emergency fund for a holiday.
Which sinking funds should everyone have?
- Christmas / holiday gifts — most-common budget blower
- Annual insurance premiums — car, home, travel
- Car maintenance — tires, service, MOT/TÜV
- Holiday / vacation
- Birthdays (yours, kids, partner, parents)
- Home maintenance — boiler, appliances, small repairs
Where should I keep sinking fund money?
A separate savings account, ideally a high-yield one, so it earns interest and stays out of sight. Some banks let you create named sub-accounts (Monzo Pots, Revolut Vaults, Ally Buckets) — perfect for this.