Formula - Sinking Fund Payment | Propertylogy

Formula – Sinking Fund Payment

By on November 30, 2018

SFP = 1/[[(1+r)n-1]/r]

Where SFP = Sinking fund payment

R = periodic interest rate

n = number of periods

A sinking fund refers to the series of payments that has to be made in order to reach a specified amount of money.

This equation for calculation works out the mortgage payment amounts required in the future.

For example, if you need to attain an accumulation of $10,000 in 5 years, how much do you need to save each month, taking into account compounded interest?

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