Emergency Fund Calculator
An emergency fund is your financial safety net for unexpected expenses or job loss. This calculator helps you determine the right amount based on your expenses, income stability, and personal factors.
How We Calculate This
Recommended months of coverage is calculated based on income stability (3-12 months base), adjusted for dependents (+1 month per 2 dependents), and reduced by 1 month for dual-income households.
Frequently Asked Questions
How many months of expenses should I save?
The standard recommendation is 3-6 months. Freelancers, single-income households, or those with dependents should aim for 6-12 months. Very stable income earners might be okay with 3 months.
Where should I keep my emergency fund?
Use a high-yield savings account for easy access and decent returns. Avoid investing emergency funds in stocks or locking them in CDs - you need immediate access when emergencies happen.
Should I pay off debt or build emergency fund first?
Build a starter emergency fund ($1,000-2,000) first, then tackle high-interest debt. Once debt is paid, build your full emergency fund. This prevents new debt from emergencies.
What counts as an emergency?
Job loss, medical emergencies, major car repairs, and essential home repairs. Vacations, holidays, and predictable expenses are not emergencies - budget for those separately.
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You might also find these calculators helpful: Savings Goal Calculator, and Net Worth Calculator.