Emergency Fund

Calculate how much you need for emergencies.

Formula & Methodology

Target fund = monthly essential expenses × number of months to cover (commonly 3–6).

Worked Example

$3,000/month in essential expenses × 6 months = an $18,000 emergency fund target.

Frequently Asked Questions

How many months should I save?

Three months is a baseline for stable households; six or more is safer for variable income, single earners, or high-dependency households.

What expenses should I include?

Include only essential costs like housing, food, utilities, insurance, and minimum debt payments, not discretionary spending.

Where should I keep it?

In a liquid, accessible account like a high-yield savings account, separate from everyday spending.

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