An Emergency Fund Calculator
An emergency fund is cash set aside to cover essential spending if income stops or a large bill lands. The standard target is three to twelve months of essentials, depending on how secure your income is.
Recommended fund for the horizon
$18,000.00
- Three-month fund
- $9,000.00
- Six-month fund
- $18,000.00
- Twelve-month fund
- $36,000.00
- Months to goal
- 43.3333
- Years to goal
- 3.6111
Values update as you type. This calculator covers the single scenario its formula assumes — see Common Mistakes for what it leaves out.
The formula this calculator uses
Fund = monthly essential expenses x months of cover
- expenses
- Essential monthly spending
- months
- Months of cover you want
- savings
- What you already have set aside
- contribution
- Amount added each month
How to check the result by hand
- 1
Add up essential monthly spending
Include housing, food, transport, insurance, utilities and minimum debt payments. Exclude discretionary spending that could be cut in an emergency.
- 2
Choose the number of months
Three months for a secure dual income, six for most households, twelve for a single or variable income.
- 3
Multiply to get the target
Essential spending times the months of cover gives the fund size. Compare it with the three, six and twelve month figures to see the range.
- 4
Find the gap from current savings
Subtract what you already have set aside. That gap is what the monthly contribution has to close.
- 5
Work out the time to goal
Divide the gap by the monthly contribution to get the months to reach the target, then automate the transfer so it happens.
For worked examples, common mistakes and the limits of this formula, read the full How To Calculate An Emergency Fund page.