What is the difference between an Emergency Fund and a Sinking Fund?

An Emergency Fund is for 'Unknown Unknows' (job loss, health). A Sinking Fund is for 'Known Knowns' (a planned vacation, annual car insurance, or a house downpayment).

Where should I park my Sinking Fund?

Since these are short-to-medium term goals, use Liquid Mutual Funds, Arbitrage Funds, or high-interest Savings Accounts to ensure capital safety and quick access.

Sinking Fund Calculator

Save for big-ticket goals (Travel, Wedding, Downpayment) by calculating monthly contributions adjusted for inflation.

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Quick Summary: Sinking Fund Calculator

A sinking fund is a strategic way to save for a specific future expense by breaking it down into manageable monthly 'EMIs to yourself'. For a ₹10 Lakh wedding in 3 years, a sinking fund factors in 6% inflation to show you exactly how much to save today to avoid debt later.

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Regulatory Disclaimer

Last verified May 2026

Statutory Disclosure

Nature:Calculator platform and is NOT a SEBI-registered Investment Adviser. All calculations are indicative.

Risk:"Investments in securities market are subject to market risks. Read all related documents carefully before investing."

Consult a SEBI-registered IA or CA for personalised advice.

9 out of 10 traders in F&O incurred net losses (SEBI 2023). Tax estimates based on IT Act 2025. Trezoriq is not liable for financial decisions based on results.