Emergency Fund Calculator
Calculate how much you need in your emergency fund based on your essential monthly expenses. Track your progress and see how long until you reach your goal.
Monthly Essential Expenses
Savings Information
Your 6-Month Emergency Fund Target
$21,000
Based on $3,500/month in essential expenses
Progress23.8%
Priority alert! You need $16,000 to be prepared.
Current savings cover 1.4 months of expenses
Monthly Expenses
$3,500
Current Savings
$5,000
Amount Needed
$16,000
Time to Goal
32 months
What is an Emergency Fund?
An emergency fund is money set aside to cover unexpected expenses or financial emergencies. It acts as a safety net, helping you avoid debt when life throws curveballs like job loss, medical bills, car repairs, or home maintenance.
How Much Do You Need?
| Situation | Recommended | Why |
|---|---|---|
| Dual income, stable jobs | 3 months | Lower risk, two income sources |
| Single income household | 6 months | Standard recommendation for most |
| Variable/commission income | 9 months | Income unpredictability needs buffer |
| Self-employed/freelancer | 12 months | Highest income volatility |
What to Include
- +Housing (rent or mortgage)
- +Utilities (electric, gas, water)
- +Food and groceries
- +Transportation costs
- +Insurance premiums
- +Minimum debt payments
What NOT to Include
- -Entertainment and subscriptions
- -Dining out
- -Vacation savings
- -Shopping and retail
- -Gym memberships
- -Non-essential services
How to Build Your Emergency Fund
- 1.Start small: Even $500-$1,000 can cover many minor emergencies.
- 2.Automate savings: Set up automatic transfers on payday.
- 3.Use a separate account: Keep it in a high-yield savings account.
- 4.Save windfalls: Put tax refunds and bonuses directly into your fund.
- 5.Cut expenses temporarily: Reduce discretionary spending until you reach your goal.
- 6.Only use for emergencies: Define what qualifies as an emergency and stick to it.
Where to Keep Your Emergency Fund
Good Options
- + High-yield savings account
- + Money market account
- + Short-term CDs (laddered)
Avoid
- - Stocks or volatile investments
- - Long-term CDs (penalties)
- - Under your mattress (no interest)