Lake sedimentation has a fundamental impact on lake lifetime. In this paper, we show how sensitive calculation of the latter is to the quality of data available and assumptions made during analysis. Based on the collection of a large new dataset, we quantify the sediment masses (1) mobilized on the hillslopes draining towards Lake Tana (Ethiopia), (2) stored in the floodplains, (3) transported into the lake, (4) deposited in the lake and (5) delivered out from the lake so as to establish a sediment budget. In 2012–2013, suspended sediment concentration (SSC) and discharge measurements were made at 13 monitoring stations, including two lake outlets. Altogether, 4635 SSC samples were collected and sediment rating curves that account for land cover conditions and rainfall seasonality were established for the 11 river stations, and mean monthly SSC was calculated for the outlets. Effects of the floodplain on rivers' sediment yield (SY) were investigated using measurements at both sides of the floodplains. SY from ungauged rivers was assessed using a model that includes catchment area and rainfall, whereas bedload and direct sediment input from lake shores were estimated. As a result, the gross annual SY was c. 39.55 (± 0.15) Mt, dominantly from Gilgel Abay and Gumara Rivers. The 2.57 (± 0.17) Mt sediment deposited in floodplains indicate that the floodplains serve as an important sediment sink. Moreover, annually c. 1.09 Mt of sediment leaves the lake through the two outlets. Annual sediment deposition in the lake was c. 36.97 (± 0.22) Mt and organic matter accumulation was 2.15 Mt, with a mean sediment trapping efficiency of 97%. Furthermore, SSC and SY are generally higher at the beginning of the rainy season because soils in cultivated fields are bare and loose due to frequent ploughing and seedbed preparation. Later in the season, increased crop and vegetation cover lead to a decrease in sediment production. Based on the established sediment budget with average rainfall, the lifetime of Lake Tana was estimated as 764 to 1032 years, which is shorter than what was anticipated in earlier studies. The sedimentation rate of Lake Tana (11.7 ± 0.1 kg m−2 yr−1) is in line with the sedimentation rates of larger lakes in the world, like Lake Dongting and Lake Kivu. Copyright © 2017 John Wiley & Sons, Ltd.