Cash Reserve Ratio
Determine the optimal split between cash reserves and invested assets based on your income stability, expense volatility, and risk profile.
Financial Disclaimer
This calculator is for educational purposes only and does not constitute financial advice. Results are estimates based on the inputs provided. Consult a qualified financial advisor before making investment or financial planning decisions.
Inputs
Results
Recommended Cash Reserve
$15,360
Recommended Invested
$34,640
How to Use This Calculator
- Enter your total liquid assets (checking, savings, money market) and monthly expenses.
- Rate your income stability (1 = very variable, 5 = very stable) and expense volatility.
- Set the number of months of expenses you're targeting for your cash reserve.
- Review Months Covered vs your target to see whether you're over- or under-reserved.
- Check Opportunity Cost of Excess Cash to see how much idle cash is costing you versus investing at 7%.
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