Sinking Fund Calculator NZ

This calculator works out the regular amount to set aside for the predictable big bills that hit New Zealand households every year, things like council rates, house and contents insurance, and car registration, warrant of fitness and servicing. Rather than being caught out when one of these lands, a sinking fund lets you save toward them steadily so the money is already there when needed. You enter your expected yearly cost for rates, insurance, car running costs, and any other annual expenses such as school fees or subscriptions billed yearly. The calculator adds these together and shows the total to save each year, then breaks that figure down into what to set aside per week, per fortnight and per month, so you can match it to how often you get paid. For example, yearly costs totalling $7,600 work out to roughly $146 a week, $292 a fortnight or $633 a month. Once you have your figure, transfer it automatically into a separate savings account each pay cycle so the cash is ring-fenced and you are not tempted to dip into it. Review the amounts at least once a year, since rates, insurance premiums and vehicle costs tend to rise, and adjust your sinking fund accordingly. These figures are indicative only and depend on your own bills, so plug in your real numbers rather than relying on the examples shown.

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Set the amount aside in a separate account so it is there when the bills land. Review yearly as costs change. A sinking fund is one of the simplest ways to avoid bill shock. Estimate only.