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Emergency Fund Calculator

Your target from essential spending, current cover, and the month you get there.

Target
$21,000
Still needed
$13,000
Currently covers
2.3 mo
Time to target
1y 8m

The target is a multiple of essential spending, not your normal budget. In the situation this money is for, discretionary spending is the first thing to go, so sizing the fund against a typical month overstates it badly and makes the goal feel unreachable. Keep it somewhere boring and instant: a high-yield savings account, not the market.

GuideHow Big Should an Emergency Fund Be?Cash set aside to cover essential expenses through a job loss or unexpected bill, held somewhere safe and immediately accessible.

Worked example. With $3,500 of essential monthly spending, six months of cover is $21,000. Holding $8,000 today covers 2.3 months. Adding $600 a month in an account paying 4.5% gets you there in 20 months rather than the 22 it would take with no interest.

Frequently asked questions

Three months or six?

Six is the common default. Three can be enough with very stable dual income and no dependants; nine to twelve is more appropriate for a single earner, commission income, or a specialised role where finding the next job takes longer. The variable that matters is how long your income could realistically be interrupted.

Essential spending or total spending?

Essential. Housing, food, utilities, insurance, minimum debt payments, transport. In the situation this money exists for, subscriptions and dining out are the first things to go, and sizing the fund against a normal month makes the target far larger than it needs to be.

Where should I keep it?

A high-yield savings account or money market fund: instant access, no market risk. Not in stocks, because the times you need it most are exactly the times markets are down, and not in anything with a withdrawal penalty.

Emergency fund or pay off debt first?

The common approach is a small starter fund of $1,000 to $2,000, then attack high-interest debt, then finish the full fund. Carrying a 24% credit card balance while holding cash at 4.5% costs you money, but having no buffer at all guarantees the next surprise goes on that card.

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Calculators model hypothetical outcomes from the inputs you provide. They are informational only, not financial, investment, tax, or legal advice.