Emergency Fund Calculator
The Emergency Fund Calculator turns your monthly expenses into a concrete savings target based on how many months of coverage you want, using common 3–6 month guidelines.
What this means
An emergency fund covers unexpected expenses without borrowing. Most advisors suggest 3–6 months of essential expenses; higher-income or less stable jobs may want more.
How we calculate it
Formula
Target = monthly essential expenses × months of coverage.Worked example
$3,000 of monthly essential expenses and a 6-month target:
- 1Target = $3,000 × 6 = $18,000
Important assumptions
- The target covers essential expenses only.
- The fund earns interest but that is not modeled here.
Frequently asked questions
How many months should I save?
3 months as a starting floor, 6 months for more stability, and more if your income is variable. Start smaller and build up.
Where should I keep my emergency fund?
In an accessible, low-risk account like a high-yield savings account. It must be liquid when you need it, not invested in volatile assets.