Sinking fund
This will calculate: how much to set aside each period if you need so much money in the future.
Example: you need to put a new roof on a building in 10 years at an estimated cost of $20,000. How much must you invest every month, earning 5% compounded monthly, to have $20,000 in the bank in 10 years?
Please note: the result is a negative number because it is a cash outlay.
Prefer to let the site do the arithmetic? Use the sinking fund form.
- HP-12C keystrokes
- 1 10 g n
- 2 5 g i
- 3 20000 FV
- 4 PMT = -128.80
g is the blue shift key — press it immediately before n or i to enter the term in months rather than years.