Emergency Fund Calculator
Calculate exactly how much you need to save for financial emergencies
Why You Need an Emergency Fund
An emergency fund is money set aside to cover unexpected financial emergencies like job loss, medical bills, or urgent home/car repairs. It prevents you from going into debt when life throws surprises your way.
- Protects against unexpected expenses
- Prevents reliance on high-interest debt
- Provides peace of mind during financial uncertainty
Include rent/mortgage, groceries, utilities, loans, insurance, and other essential costs.
Choose longer duration if you have irregular income or high financial obligations.
Your Emergency Fund Target
This covers 6 months of essential expenses
Smart Saving Tip
Keep your emergency fund in a high-yield savings account to earn interest while maintaining easy access to your money.
Understanding Emergency Funds
How Much Should You Save?
Financial experts recommend different amounts based on your situation:
- 3 months: Minimum for those with stable jobs and low expenses
- 6 months: Standard recommendation for most people
- 9-12 months: Recommended for freelancers, business owners, or those with dependents
Where to Keep Your Emergency Fund?
Choose accounts that balance accessibility and growth:
- High-yield savings accounts: Earn 4-5% APY with FDIC insurance
- Money market accounts: Check-writing privileges with good interest
- Short-term CDs: For portions you won't need immediately
- Avoid: Stocks, crypto, or other volatile investments
How to Build Your Emergency Fund
Step-by-Step Saving Strategy
- Set your target - Use this calculator to determine your needed amount
- Start small - Aim for $500-$1,000 as an initial mini-fund
- Automate savings - Set up automatic transfers each payday
- Cut expenses - Reduce discretionary spending temporarily
- Add windfalls - Deposit tax refunds, bonuses, or gifts
- Review regularly - Adjust as your expenses change
When to Use Your Emergency Fund
Your emergency fund should only be used for true emergencies:
- Unexpected job loss
- Medical emergencies
- Essential car or home repairs
- Unexpected travel for family emergencies
Not for: Vacation planning, holiday shopping, or non-essential upgrades.
