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Emergency Fund Calculator
Enter your essential monthly costs and how many months you want to cover. You get a target, the gap and the time it takes to close it.
| Cover | Fund size |
|---|---|
| 3 months | $7,500 |
| 6 months | $15,000 |
| 9 months | $22,500 |
| 1 year | $30,000 |
Example
Covering 6 months of $2,500 in expenses takes $15,000. With $3,000 saved you have 1.2 months covered and $12,000 to go. Saving $400 a month gets you there in 2 years 6 months.
How the emergency fund calculator works
The target is your essential monthly expenses multiplied by the number of months you want to cover. Essentials are the bills you would still pay with no income: housing, food, utilities, insurance, transport and minimum debt payments.
The time to get there is the gap divided by what you save each month. Interest is left out, because an emergency fund is usually kept somewhere safe and easy to reach, where it earns little.
Three to six months is the usual guide. People with irregular income, one earner in the household or dependants often aim for more.
Common questions
Where should I keep an emergency fund?
Somewhere you can reach quickly without risk of loss, such as an instant-access savings account. It is insurance, so safety matters more than the return.
Should I pay off debt or build the fund first?
A common approach is to build a small starter fund, then pay off high-interest debt, then finish the fund. Without any cushion, an unexpected bill usually goes straight onto a card.
Do I count all my spending?
Count only what you could not cut. In an emergency you would pause holidays and subscriptions, so the fund does not need to cover them.