Emergency Fund Calculator

Calculate how much you should save for emergencies based on your monthly expenses and financial situation. Build a safety net for unexpected costs.

Monthly Expenses

Emergency Fund Recommendations

Monthly Essential Expenses

$2,700

Recommended Emergency Fund

$16,200

6 months of expenses

Minimum Fund (3 months)

$8,100

Comfortable Fund (6 months)

$16,200

Maximum Fund (12 months)

$32,400

Savings Plan

Save $100/month:162 months
Save $250/month:65 months
Save $500/month:33 months

How to Build an Emergency Fund

An emergency fund is a savings account specifically for unexpected expenses like:

  • Job loss: Cover living expenses while searching for new employment
  • Medical emergencies: Unexpected healthcare costs not covered by insurance
  • Home repairs: Major appliance failures or structural issues
  • Car repairs: Unexpected vehicle maintenance or replacement
  • Family emergencies: Travel costs for family situations

The recommended amount varies based on your job security, family situation, and monthly expenses.

Emergency Fund Building Strategy

Step 1: Start Small

  • • Begin with $500-$1,000 as initial goal
  • • Save loose change and small amounts
  • • Use tax refunds or bonuses
  • • Sell unused items

Step 2: Automate Savings

  • • Set up automatic transfers
  • • Save a percentage of each paycheck
  • • Use high-yield savings accounts
  • • Keep funds easily accessible

Step 3: Reduce Expenses

  • • Review and cut unnecessary subscriptions
  • • Cook more meals at home
  • • Find cheaper alternatives for services
  • • Temporarily reduce entertainment spending

Step 4: Increase Income

  • • Take on freelance or part-time work
  • • Sell skills or services
  • • Rent out space or belongings
  • • Ask for a raise or promotion

Frequently Asked Questions

Where should I keep my emergency fund?

Keep it in a high-yield savings account that's easily accessible but separate from your checking account to avoid temptation.

Should I invest my emergency fund?

No, emergency funds should be in safe, liquid accounts. The goal is preservation and accessibility, not growth.

What counts as an emergency?

True emergencies are unexpected, necessary, and urgent expenses like job loss, medical bills, or major repairs.