# Sinking Fund Calculator

Sinking fund is defined as the repayment fund obtained by setting aside revenue over a period of time to fund a future capital expense or repayment of a long-term debt. It can also be used to set aside money for purposes of replacing capital equipment as it becomes obsolete, or major maintenance or renewal of elements of a fixed asset. Make use of this online sinking fund calculator to calculate the required payment based on the total accumulated, interest rate and payback period.

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Sinking fund is defined as the repayment fund obtained by setting aside revenue over a period of time to fund a future capital expense or repayment of a long-term debt. It can also be used to set aside money for purposes of replacing capital equipment as it becomes obsolete, or major maintenance or renewal of elements of a fixed asset. Make use of this online sinking fund calculator to calculate the required payment based on the total accumulated, interest rate and payback period.

Code to add this calci to your website  #### Formula:

f = a × ( ( i / 100) / ( ( ( 1 + ( i / 100 ) )n) - 1) ) Where, f = Required Payment a = Total Accumulated i = Interest Rate n = Payment Period

### Example:

Calculate sinking fund required for the total accumulation fund of Rs.50,000, interest rate of 2% and the payback period of 12months.

#### Solution:

Sinking fund (f) = 50000 × ( ( 2 / 100 ) / ( ( (1 + (2 / 100 ) )12) -1) )
= Rs.3727.97