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How to Use Our Emergency Fund Calculator

3 min read

How to Use Our Emergency Fund Calculator

An emergency fund is the foundation of financial security. Our Emergency Fund Calculator helps you determine exactly how much you need based on your personal circumstances.

What to Enter

  • Monthly Essential Expenses -- Your non-negotiable monthly costs: rent/mortgage, utilities, groceries, insurance, minimum debt payments, and transportation. Do not include discretionary spending like dining out or entertainment.
  • Number of Months -- How many months of coverage you want. The standard recommendation is 3-6 months, but your situation may call for more.
  • Employment Stability -- Stable employment, freelance/contract work, or single-income household. Less stability means a larger fund.
  • Current Savings -- What you already have set aside.

Understanding Your Results

Target Emergency Fund -- Your recommended total based on your expenses and months of coverage.

Current Gap -- How much more you need to save to reach your target.

Monthly Savings Plan -- How much to save per month to reach your target within a specified timeframe.

How Much Is Enough?

  • 3 months: Minimum for dual-income households with stable jobs
  • 6 months: Standard recommendation for most people
  • 9-12 months: Recommended for single-income households, freelancers, or those in volatile industries

Where to Keep It

Your emergency fund should be in a high-yield savings account -- accessible within 1-2 business days but separate from your checking account to reduce temptation. Current high-yield accounts offer 4-5% APY, so your emergency fund works for you while it waits.

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