Emergency Fund Calculator
Enter your essential monthly expenses and what you save. In the default example the target is $21,000.00, you have 1.1 months covered and you reach the goal in 40 months.
How the emergency fund calculator works
An emergency fund is cash you set aside for unplanned costs such as a job loss, a medical bill or a major repair. This calculator turns that idea into numbers. You enter your essential monthly expenses, choose how many months you want to cover, and add what you already have saved and what you can add each month. It shows your target, how much is still missing and how long it will take.
Use essential expenses only: rent or mortgage, utilities, groceries, insurance, minimum debt payments, transportation and similar must-pay items. Leave out dining out, subscriptions and other costs you could cut in a crisis.
The formulas
The time to reach your goal is found by repeating the last line month by month until the balance reaches the target. The monthly rate is derived from the APY you enter. Set the APY to 0 if your savings earn nothing.
Example: This is an illustration. With $3,500 of essential expenses a month and a six-month goal, the target is $21,000.00. Saving $4,000 already leaves $17,000.00 to go and covers 1.1 months of expenses, which is 19.05% of the goal. Adding $400 a month with a 3 percent APY gets there in 40 months.
How many months should you pick?
There is no single correct number. The Consumer Financial Protection Bureau says the right goal depends on your situation, and suggests thinking about the unexpected expenses you have had in the past and what they cost. It also notes that even a small amount gives some financial security. People with a variable income, a single income in the household or dependents often choose a larger cushion.
Keep the money somewhere you can reach quickly and that is not at risk of loss, such as an insured savings account. To plan the monthly amount, our budget template for Excel and savings tracker template may help. This tool is general information, not financial advice.
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Frequently asked questions
How much should be in an emergency fund?
It depends on your situation. A common approach is to multiply essential monthly expenses by the number of months you want covered. The default example uses $21,000.00 as the target.
Should I use essential or total expenses?
Essential expenses only, because in an emergency you would cut optional spending.
How long will it take to build my fund?
It depends on how much you save each month. The default example takes 40 months at $400 a month.
Where should I keep an emergency fund?
Somewhere accessible and low risk, such as an insured savings account, so the money is there when you need it.
Should I save an emergency fund before paying off debt?
Many people build a small starter fund first, then pay down debt. The right order depends on your interest rates and risks.
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