Emergency Fund Calculator
How much to set aside to cover several months of expenses.
Result
Emergency fund target
3,000,000
How it works
An emergency fund is the money that stands between an unexpected bill and a debt. The target is simply your monthly expenses times the number of months you want covered: 1,200 a month over six months means 7,200 set aside. Base the figure on expenses, not income — what you must pay to keep living, which is what a job loss actually threatens. And count the essentials only: rent, food, utilities, transport, insurance, minimum loan payments. The fund exists to cover survival, not lifestyle. Three to six months is the usual range, tilted by how stable your income is. A salaried employee in a stable sector can sit at three; someone self-employed, on commission or with irregular income should aim for six to twelve. Keep it liquid and boring — instantly accessible, not invested in anything that can fall exactly when you need it.
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Frequently asked questions
How many months should I save?
Three to six months for most; aim higher with unstable income or dependents.
Where should I keep it?
Somewhere safe and easy to access, separate from your day-to-day spending.
Should I build the fund before paying off debt?
Usually build a small starter fund first — one month of expenses — then attack high-interest debt hard, then finish the fund. Without any buffer, the next surprise simply becomes new debt.
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