Emergency fund calculator
Figure out how much you should have set aside for the unexpected — job loss, a medical bill, a broken-down car — and how close you already are, based on your own situation.
How this calculator works
A short refresher before you play with the numbers above.
Essential expenses only
The fund only needs to cover survival costs — rent, food, utilities, transport, insurance, minimum debt payments — not your normal discretionary spending.
3–6 months is the usual range
A stable, dual-income household can often get by on 3 months. A single or variable income usually calls for more.
Risk factors stack
Freelance income, dependents, and a layoff-prone industry each add their own cushion on top of the baseline — they're not mutually exclusive.
Keep it liquid, not invested
An emergency fund belongs somewhere you can withdraw immediately without loss — a savings account or money market fund, not locked-up investments.
Frequently asked questions
How much should I have in an emergency fund?
A common starting point is 3-6 months of essential expenses, adjusted up if your income is variable, you're the sole earner, or you support dependents. There's no single right number — it depends on how quickly you could replace lost income and how flexible your expenses already are.
Should I count all my expenses, or just the essentials?
Just the essentials — rent or mortgage, utilities, food, transport, insurance, and minimum debt payments. Discretionary spending (eating out, entertainment, subscriptions) is usually the first thing to cut in an emergency, so it shouldn't inflate your target.
Where should I keep my emergency fund?
Somewhere liquid and low-risk — a savings account or a money market fund you can withdraw from within a day or two without penalty or loss. It shouldn't be tied up in shares, a fixed deposit with an early-withdrawal penalty, or anything else that could lose value right when you need it.
What counts as an emergency?
Job loss, an unexpected medical bill, an urgent car or home repair, or any expense that's both necessary and unplanned. A planned expense you simply didn't budget for well — like an annual insurance renewal — is a budgeting gap, not an emergency.
Why do risk factors add months instead of a fixed extra amount?
Because the risk they represent scales with your expenses, not a flat number. Someone with higher essential costs and a volatile income needs a proportionally bigger cushion than someone with lower costs and the same risk profile — expressing it in months keeps the target scaled to your actual situation.