Calculator
Emergency fund calculator
An emergency fund covers essential monthly expenses when life throws surprises. Enter your essentials to see recommended target levels.
Updated July 2026
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Starter target (1 month)
$3,000
You have 0.5 months covered
Standard target (3 months)
$9,000
Extended target (6 months)
$18,000
Months to standard target
19 months
How it works
Starter = Essentials × 1 | Standard = Essentials × 3–6 | Extended = Essentials × 6–12
- List essential monthly expenses only: rent/mortgage, utilities, groceries, insurance, minimum debt payments, transport.
- Skip discretionary spending — restaurants, subscriptions, hobbies pause in a real emergency.
- Starter target: 1 month of essentials. Get here first before anything else.
- Standard: 3 months if stable income; 6 months for freelancers or single-income households.
- Extended: 6–12 months for high-volatility incomes or nearer to retirement.
Worked examples
- $3,000 essentials: starter $3,000, standard $9,000–18,000, extended $18,000–36,000.
- Starter fund typically takes 3–12 months to build with focused effort.
- Even a partial fund materially reduces stress and prevents new debt from surprise expenses.
Frequently asked questions
How much emergency fund is enough?
1 month starter; 3–6 months standard; 6–12 months for freelancers or single-income households. Extending the fund makes sense as income volatility rises.
Where should I keep it?
In a high-yield savings account — same-day access, FDIC-insured (or your country's equivalent), earning meaningful interest. Not stocks, not crypto, not long-term CDs.
Should I invest my emergency fund?
No. Its whole purpose is to be there in cash the day you need it. Investing it defeats the purpose — bear markets and job losses often arrive together.
Related
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Full framework for building one.
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Educational information only. Not personalised financial advice. Consult a qualified professional for decisions specific to your situation.