Emergency Fund Calculator | Months of Expenses Target
Calculate an emergency savings target from monthly essential expenses, coverage months, and current savings gap.
Emergency Fund Plan
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Calculate an Emergency Fund Target
Enter monthly essential expenses, desired months of coverage, and current savings to estimate the emergency fund target and remaining savings gap.
Coverage Months Depend on Risk
Freelancers, single-income households, renters, families, and people with variable income may choose different coverage targets. Use the result to start a safer cash reserve plan.
About This Tool
Emergency Fund Calculator determines how much money you should keep as an emergency reserve based on your monthly essential expenses and your desired number of months of coverage. Financial advisors typically recommend three to six months of expenses.
When to Use It
Use this when starting to build an emergency fund and you need a concrete savings target, when reviewing whether current savings are sufficient after a change in expenses, or when allocating a windfall.
How to Use
- Enter your monthly essential expenses: rent, food, utilities, transport, insurance.
- Select the number of months of coverage you want.
- Click Calculate to see your emergency fund target.
Frequently Asked Questions
How many months of expenses should an emergency fund cover?
Three months is the minimum for someone with stable employment. Six months is recommended for variable income, self-employment, or dependants.
What counts as an essential expense?
Rent or mortgage, utilities, groceries, transport for work, minimum debt payments, and insurance premiums. Exclude discretionary spending.
Where should I keep my emergency fund?
A high-interest savings account that is accessible immediately but separate from your daily spending account is the standard recommendation.