Emergency Fund Calculator
An emergency fund is one of the most important foundations of personal finance. It provides a financial safety net for unexpected expenses like job loss, medical emergencies, or urgent home repairs. Use this calculator to determine how much you should save and track your progress toward your goal.
Want to learn more? Read our comprehensive guide on Emergency Funds to understand why this financial buffer is essential and strategies for building one.
How to Use the Emergency Fund Calculator
This calculator helps you determine your ideal emergency fund target and shows how long it will take to reach your goal based on your current savings rate. Simply enter your monthly expenses, current savings, desired coverage period, and monthly contribution to see a clear picture of your emergency fund journey.
The results show your target amount, current progress, and a visual projection of your savings growth over time. The chart displays your savings trajectory alongside your target, making it easy to see when you'll reach your goal.
Understanding the Input Fields
Monthly Expenses
This field represents your total essential monthly expenses. Include costs that you would need to cover even during a financial emergency: rent or mortgage, utilities, groceries, insurance premiums, minimum debt payments, and transportation. These are the expenses you'd still need to pay if you lost your income.
Don't include discretionary spending like entertainment or dining out. In an emergency, you'd likely cut these expenses first. Focus on the bare minimum you need to maintain your household and meet obligations.
Current Emergency Savings
Enter the amount you currently have saved specifically for emergencies. This should be money that's easily accessible, typically in a high-yield savings account or money market account. Don't include retirement accounts, investment portfolios, or funds earmarked for other goals.
If you're starting from zero, that's perfectly fine. Many people begin their emergency fund journey with nothing saved, and this calculator will show you exactly how long it will take to build your safety net.
Target Months of Expenses
Financial experts generally recommend saving 3-6 months of expenses for your emergency fund. The right number depends on your personal situation.
Consider saving closer to 3 months if you have stable employment, dual household income, or low fixed expenses. Aim for 6 months or more if you're self-employed, work in a volatile industry, have dependents, or are the sole income earner. Some people prefer even larger emergency funds of 9-12 months for additional peace of mind.
Monthly Savings Contribution
This is the amount you can consistently set aside each month toward your emergency fund. Be realistic about what you can afford without straining your budget. Consistency matters more than the amount, so even small contributions add up over time.
If you're unsure how much you can save, try using the as a starting point, which suggests putting 20% of your income toward savings and debt repayment.
Where to Keep Your Emergency Fund
Your emergency fund should be kept somewhere safe, accessible, and separate from your regular checking account. High-yield savings accounts are popular because they offer better interest rates than traditional savings accounts while maintaining FDIC insurance protection and easy access.
Money market accounts and short-term certificates of deposit (CDs) are other options, though CDs may have early withdrawal penalties. Avoid keeping your emergency fund in investments like stocks, as market fluctuations could reduce your fund's value right when you need it most.
Building Your Emergency Fund: Tips for Success
Starting an emergency fund can feel overwhelming, especially if you're building from scratch. Consider automating your savings by setting up automatic transfers from your checking account to your emergency fund on payday. This "pay yourself first" approach makes saving effortless and consistent.
If you receive windfalls like tax refunds, bonuses, or gifts, consider directing a portion to your emergency fund. These irregular income sources can significantly accelerate your progress without affecting your monthly budget.