Emergency Fund Calculator
Calculate how much you need in your emergency fund and how far you are from the goal.
$19,800
target fund (6 months of expenses)
Time to reach goal:
Saving $200/month: 74 months
Saving $500/month: 30 months
Saving $1,000/month: 15 months
Formula
Calculates the recommended emergency fund size based on your monthly expenses and desired safety margin.
Emergency Fund = Monthly Expenses × Number of Months (3–6)
Worked Example
Your monthly expenses are $4,000:
- Conservative (3 months): $12,000
- Moderate (4 months): $16,000
- Recommended (6 months): $24,000
- High earner (12 months): $48,000
Common Questions
How many months should I save?
Minimum 3 months if you have stable income. Recommended 6 months for job security/health concerns. Self-employed or high-income earners: 9–12 months.
Where should I keep it?
High-yield savings account (4–5% APY) or money market fund. NOT investments—you need quick access, not growth.
What counts as an emergency?
Job loss, medical bills, major car/home repairs. NOT: vacation, Black Friday sales, or discretionary spending.
Key Takeaways
- An emergency fund prevents high-interest debt during hardship—it's not optional.
- Start small (1 month), then build to 3–6 months. Don't max retirement accounts until you have this cushion.
- Keep it liquid and accessible; high-yield savings accounts earn 4%+ with zero risk.