How to Calculate Your Emergency Fund Target
An emergency fund is a dedicated savings reserve covering essential living expenses in the event of job loss, medical emergency, or unexpected major expenses. Financial advisors recommend 3–6 months of expenses for most people, with 6–9 months for those with variable income or dependants. This calculator supports multiple currencies.
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Formula
Emergency Fund Calculator
Calculate how large your emergency fund should be and how long to build it.
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Worked Example
Given:
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FAQs
What counts as essential monthly expenses?
Include: rent or mortgage, utilities, groceries, transportation (fuel or transit), insurance premiums, minimum debt payments, and childcare. Exclude: dining out, entertainment, subscriptions, and other discretionary spending.
Where should I keep my emergency fund?
Keep it in a high-yield savings account — accessible within 1–3 business days but separate from your everyday account to reduce temptation. Avoid investing it in stocks or bonds as the value could drop just when you need it.
Should I pay off debt or build an emergency fund first?
Build a small starter fund ($1,000–$2,000) first, then focus on high-interest debt (credit cards), then build the full 3–6 month fund, then tackle lower-interest debt and investing. Having no emergency fund means any unexpected expense goes straight onto credit cards.