Emergency Fund Calculator
Work out how large your emergency fund should be and how long it will take to build.
Please note: A planning guide, not financial advice. The right buffer depends on job security, dependants, insurance cover and access to credit, none of which this calculation can see.
What the Emergency Fund Calculator does
An emergency fund covers essential living costs when income stops. Size it on your bare-minimum monthly spending, not your usual spending — in a genuine emergency the discretionary items go first.
Formula
Target = Essential monthly expenses × Months of coverTime to build = Shortfall ÷ Monthly saving
Inputs explained
| Input | Unit | Required | Notes |
|---|---|---|---|
| Essential monthly expenses | selected currency | Yes | Rent, food, utilities, transport, insurance, minimum debt payments. Accepts more than 0. |
| Months of cover wanted | number | Yes | Accepts 1 or more, up to 24. |
| Current savings | selected currency | Optional | Accepts 0 or more. |
| Monthly amount you can save | selected currency | Optional | Accepts 0 or more. |
| Currency | one of 10 options | Optional | — |
How to use it
- Choose Currency.
- Enter Essential monthly expenses and Months of cover wanted.
- Optionally add Current savings and Monthly amount you can save.
- Select Calculate.
Worked example
Essential costs of $3,200 a month, wanting 6 months of cover, with $6,000 saved and $500 a month spare.
- Expenses
- 3200
- Months
- 6
- Current
- 6000
- Monthly
- 500
Target $19,200. You have 1.9 months of cover and need 26.4 more months of saving.
Frequently asked questions
Where should I keep it?
Somewhere liquid and safe — a high-yield savings account. Not invested in stocks, since emergencies and market crashes often arrive together.
Emergency fund or paying off debt first?
Build a small buffer of about one month first, then attack high-interest debt, then finish the fund. Without any buffer, the next surprise goes straight back on the card.