Sinking Fund Payment
Calculate sinking fund payment needed to repay debt. Formula: Payment = FV / [(1+r)^n - 1] / r.
Formula
Sinking Fund Payment = FV / [((1+r)^n - 1) / r]
$100k in 10 years @ 5%
Inputs
- Future Value to Accumulate ($): 100000
- Interest Rate (% annual): 5
- Number of Payments: 10
~$7,951/year
Frequently asked questions
When used?
Bond redemption funds, corporate debt repayment reserves, large capital replacement.