Financial Calculators
Annual Expenses Sinking Fund Calculator
The premium, the fees, the trip home. Known a year ahead, still a shock every time.
Set aside every month
₹12,500
₹1,50,000 of annual bills, spread evenly
- Per week
- ₹2,885
- Per day
- ₹411
- Total per year
- ₹1,50,000
Annual bills are the usual reason an emergency fund gets raided or a credit card gets used. Park the monthly amount in a liquid fund or a sweep-in account and let the bills draw from it. It is not an investment; it is plumbing.
These figures are for illustrative purposes only and are not investment advice. Please consult your investment adviser for investment related advice.
Budget the lumpy months
Most household budgets work on a monthly rhythm, but some of the biggest bills come once a year: insurance premiums, school and college fees, the annual trip, property tax, the festival spend. When they land, the emergency fund gets raided or the credit card gets used, and the SIP is the next thing to be paused. A sinking fund fixes this by dividing the year's known bills into a monthly amount set aside in advance.
The calculator totals four categories of annual bills and gives the monthly, weekly and daily equivalents. Park the monthly amount in a liquid fund or a sweep-in account and pay the bills from there.
Annual total, spread evenly
Total = premiums + fees + travel + other\nMonthly = total / 12; weekly = total / 52; daily = total / 365Worked example: Rs 45,000 of insurance premiums, Rs 60,000 of school fees, Rs 25,000 of travel and Rs 20,000 of other annual bills total Rs 1,50,000 a year: Rs 12,500 a month, Rs 2,885 a week, or Rs 411 a day.
Frequently asked questions
Is this the same as an emergency fund?
No. An emergency fund is for the unknown: a job loss, an illness. A sinking fund is for the known: bills that will arrive on a date. Keeping them separate is what keeps the emergency fund intact.
Where should the money sit?
Somewhere safe and liquid: a liquid or overnight mutual fund, or a bank account with a sweep-in FD. Not equity, and not the same account as daily spending.
What if the bills are not spread evenly?
The monthly amount still works as long as you start a few months before the first big bill, or seed the fund with a small lumpsum. Once it is running, the timing evens out.
Should this come before or after the SIP?
Before, in sequence, because it is what protects the SIP. In amount it is usually much smaller than the SIP, and it stops growing once the year's bills are covered.
Plumbing first, then investing.
We help households set up a sinking fund and an emergency fund so the investment plan is never the thing that gives way.