This emergency fund calculator works out how much you should keep in emergency savings, based on your essential monthly costs and how many months you want to cover. It also shows how many months you are covered now and how long it will take to reach your goal.
| Cost | Per month |
|---|---|
How much should be in an emergency fund?
The usual guideline is three to six months of essential expenses. Use the lower end if you have a stable job and two incomes, and the higher end, or more, if you have a single income, dependents, an uncertain job or self-employment income.
Count only essentials you would still pay if you lost your income: housing, utilities, food, insurance, transport and minimum debt payments.
Worked example
With $3,250 a month of essential costs, a six-month fund is $19,500. With $5,000 already saved and $500 added each month, it would take 29 months (2 years and 5 months) to reach the goal.
Where to keep it
- A high-yield savings account or money market account at an insured bank.
- Separate from your everyday account, so you are less tempted to spend it.
- Not in stocks, which can fall in value just when you need the money.
Build it in steps
Start with a small first goal, such as $1,000 or one month of costs, then keep going. Even a small fund prevents many emergencies from turning into high-interest debt.
Frequently asked questions
Should I pay off debt or build an emergency fund first?
Many planners suggest a small starter fund first, then paying down high-interest debt, then building the full fund, so a surprise bill does not go straight onto a credit card.
What counts as an emergency?
Unexpected, necessary costs such as job loss, medical bills, urgent car or home repairs. Holidays and planned purchases are better saved for separately.
Is six months of expenses too much?
Not if your income is uncertain. If your job is very secure and you have other resources, three months may be enough.
Should my emergency fund earn interest?
Yes, ideally in a high-yield savings account, but safety and quick access matter more than the rate.
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Sources
Last reviewed: October 2026. For information only; not financial, tax or legal advice.