Emergency Fund Calculator

Estimates only. This calculator does not include interest earned on your savings, so you may reach your goal a little sooner.

How this emergency fund calculator works

Add up the costs you could not skip if your income stopped, such as housing, food and insurance. Choose how many months of those costs you want to be able to cover, and enter how much you have saved and how much you can set aside each month. The calculator shows your goal and how long it will take to reach it.

What counts as an essential expense?

Include only what you must pay to keep your life running: housing, utilities, groceries, transportation to work, insurance and healthcare, and the minimum payments on your debts. Leave out things you could pause in an emergency, such as dining out, subscriptions and travel.

How many months should I save?

A common guideline is three to six months of essential expenses. People with a less predictable income, a single income in the household or dependants may prefer to aim for more. If you are just starting out, a smaller first target, such as one month of expenses, can feel more achievable.

Example

Your essential expenses total 3,200 a month, and you want to cover 6 months. Your goal is 19,200. You already have 2,000, so you still need 17,200. Saving 400 a month, you will reach it in 43 months, which is 3 years and 7 months. A 3-month goal would be 9,600, and a 12-month goal would be 38,400.

Where to keep your emergency fund

• Somewhere safe and easy to reach. A savings account is a common choice, because you can get the money quickly when you need it.
• Separate from everyday spending. A different account makes it less tempting to dip into.
• Not in risky investments. Emergencies can happen when markets are down, so stability matters more than returns here.
• In an account with a decent rate. A higher-yield savings account lets your fund grow a little while it waits.

Frequently asked questions

What counts as an emergency?

Losing your job, an urgent medical bill, a major car or home repair. A sale or a vacation is not an emergency.

Should I build an emergency fund or pay off debt first?

Many people save a small starter fund first so that an unexpected bill does not go back on a credit card, then work on high-interest debt while continuing to build the fund. The right order depends on your situation.

What if I use the money?

That is what it is for. After an emergency, refill the fund step by step. Change the amount saved so far above to see how long it takes.