Emergency Fund Calculator
Size the cash cushion you need from your essential expenses, then see how long it takes to get there.
How much cash should you keep on hand?
An emergency fund is measured in months of essential spending, not in a round number. Enter what you truly must pay each month and the target sizes itself.
Understanding emergency funds
Why months, not a round number
A flat figure such as $10,000 means very different things to a household with $1,200 of essentials and one with $4,000. Sizing the fund in months of essential spending keeps it tied to the thing it protects: your ability to keep the lights on while income is interrupted.
It also self-corrects. When your rent rises or a car loan ends, the target moves with it.
Choosing 3, 6 or 12 months
- 3 months: two stable incomes, no dependants, low fixed costs, in-demand skills
- 6 months: the default for a single salaried earner with ordinary commitments
- 12 months: self-employed, commission-heavy, seasonal or single-income households with dependants
- Add to it if your industry is shrinking, you have a chronic health condition, or you own an older home or vehicle
Where the money should sit
The fund has one job: be there, in full, on the day you need it. That rules out shares, long lock-in deposits and anything with an exit penalty. A high-yield savings account, instant-access account or money market fund keeps the cash liquid while still earning something.
Interest rates move constantly, so treat the rate in this calculator as an estimate and confirm the current figure with your provider.
Build it in stages, and refill it
- Reach a starter buffer of about one month of essentials — this stops small shocks becoming new debt
- Clear high-interest debt, since credit card rates usually beat any savings rate
- Return and finish the full target, automating the transfer on payday
- After you spend from it, treat rebuilding as a bill until the balance is back