Emergency Fund Calculator
Determine how much you need for an emergency fund based on your monthly expenses. Get recommendations for the best short-term investment options to park your emergency savings.
Calculate Your Emergency Fund
Enter your monthly expenses and savings goals to determine how much you need for emergencies and how to reach your goal.
How to Use This Calculator
Step 1: Enter Monthly Expenses
Calculate your total monthly living expenses including housing, utilities, food, transportation, insurance, debt payments, and other essential costs. Be thorough but realistic.
Step 2: Choose Months to Cover
Select how many months of expenses you want to cover. Most financial experts recommend 3-6 months. If you have variable income or work in an unstable industry, consider 6-12 months.
Step 3: Enter Current Emergency Fund
If you already have money saved for emergencies, enter that amount. This helps calculate how much more you need to save.
Step 4: Set Monthly Savings
Enter how much you can realistically save each month toward your emergency fund. This helps calculate how long it will take to reach your goal.
Understanding the Results
Recommended Emergency Fund: Your monthly expenses multiplied by the number of months you want to cover.
Time to Reach Goal: How long it will take to build your emergency fund based on your monthly savings rate.
Investment Suggestions: Recommendations for where to park your emergency fund. Emergency funds should be easily accessible, so high-interest savings accounts (HISAs) are typically recommended over GICs or other locked investments.
Savings Strategy: A plan to help you reach your emergency fund goal, including monthly contribution amounts and timeline.
Why Emergency Funds Matter
An emergency fund provides a financial safety net for unexpected expenses like job loss, medical emergencies, or major repairs. It prevents you from going into debt and gives you peace of mind. Keep your emergency fund in a high-interest savings account (HISA) where it's easily accessible but still earns interest.
⚠️ Important Disclaimer
This calculator provides estimates for educational purposes. Your actual emergency fund needs may vary based on your personal circumstances, job stability, and financial obligations. Always consult with a financial advisor for personalized advice.