Emergency Fund Calculator

This emergency fund calculator helps you determine how much you should save for unexpected expenses and financial emergencies. Enter your monthly expenses, desired coverage period, and current savings to calculate your emergency fund target and savings plan.

Include essential expenses like housing, food, utilities, transportation, insurance, and debt payments
Financial experts typically recommend 3-6 months for stable income, 6-12 months for variable income
Interest rate on your emergency savings account

How the Emergency Fund Calculator Works

The emergency fund calculator uses the following steps to determine your emergency savings target and plan:

1. Calculate Target Emergency Fund

First, we determine how much you should have saved based on your monthly expenses and desired coverage period:

Target Emergency Fund = Monthly Expenses × Coverage Months

2. Calculate Current Progress

Next, we calculate your current progress toward your emergency fund goal:

Current Progress (%) = (Current Savings ÷ Target Emergency Fund) × 100

3. Calculate Amount Needed

We determine how much more you need to save to reach your target:

Amount Needed = Target Emergency Fund - Current Savings

4. Calculate Time to Reach Goal

Based on your monthly contribution and interest rate, we calculate how long it will take to reach your goal:

Time to Reach Goal = Calculated using compound interest formula with regular deposits

Emergency Fund Recommendations

Financial experts typically recommend different emergency fund sizes based on your situation:

  • 3 months: Minimum recommendation for those with stable income and low financial risk
  • 6 months: Standard recommendation for most households
  • 9-12 months: Recommended for self-employed individuals, freelancers, or those with variable income

Where to Keep Your Emergency Fund

Your emergency fund should be:

  • Easily accessible (liquid)
  • Low-risk
  • Separate from your regular checking account

Good options include high-yield savings accounts, money market accounts, or short-term CDs.