Emergency Fund Calculator
Calculate your ideal emergency fund based on monthly expenses and create a savings plan to reach your goal.
Your Emergency Fund Goal
Recommended Emergency Fund
$21,000
6 months of expenses
Your Progress
24%
$5,000
$21,000
Amount Needed to Reach Goal
$16,000
Save to fill the gap
Savings Plan to Reach Goal
Monthly
$1,333
Weekly
$308
Bi-Weekly
$615
Daily
$44
Monthly Expenses
$3,500
Target Fund
$21,000
Current Saved
$5,000
Current Coverage
1.4 months
Tips for Building Your Emergency Fund
- Set up automatic transfers to your savings on payday
- Keep your emergency fund in a high-yield savings account (4-5% APY)
- Start with a $1,000 mini emergency fund if the full goal feels overwhelming
- Only use this fund for true emergencies - job loss, medical bills, major repairs
Emergency Fund Essentials
The 3-6 Month Rule
3-6 mo
Most financial experts recommend saving 3-6 months of essential expenses. Choose 3 months if you have stable income and low expenses, or 6+ months if you're self-employed or have dependents.
Where to Keep It
Keep your emergency fund in a high-yield savings account (currently offering 4-5% APY). Avoid CDs or investments - you need quick, penalty-free access. Look for FDIC-insured accounts for protection.
What Counts as Emergency
True emergencies include: job loss, medical emergencies, major car repairs, essential home repairs. Not emergencies: vacations, shopping, regular bills, or predictable expenses. Define your criteria before you need it.
Frequently Asked Questions
Financial experts recommend having 3-6 months of essential living expenses in an emergency fund. If you have variable income, are self-employed, or have dependents, consider saving 6-12 months. Your emergency fund should cover housing, utilities, food, transportation, insurance, and debt payments.
Include essential monthly expenses: rent or mortgage, utilities (electricity, water, gas, internet), groceries, transportation (car payment, insurance, gas), health insurance premiums, minimum debt payments, and any other necessary recurring costs. Do not include discretionary spending like entertainment or dining out.
Keep your emergency fund in a high-yield savings account that offers easy access and FDIC insurance. Avoid investing emergency funds in stocks or locking them in CDs. The goal is liquidity - you need quick access without penalties. Current high-yield savings accounts offer 4-5% APY.
Building a 3-month emergency fund typically takes 12-18 months if you save 10-15% of your income. For a 6-month fund, expect 2-3 years. Start with a goal of $1,000 for starter emergencies, then work toward your full target. Automate your savings to make consistent progress.