How It Works
The target is your monthly essential expenses multiplied by however many months of coverage you're aiming for. If you enter a monthly savings amount, the calculator also estimates how many months it would take to close the gap between your current savings and that target.
The right number of months to target varies by situation — job stability, whether you have dependents, and whether you have other income sources all matter, which is why this calculator treats the months-of-coverage figure as an adjustable guideline, not a fixed rule.
Formula
- MonthlyEssentialExpenses — What you'd need to cover necessities if income stopped
- TargetMonths — How many months of coverage you're aiming for
Example
Example inputs: $3,000/mo essential expenses, $4,000 current savings, 6-month target, $500/mo savings contribution.
Result: Target emergency fund: $18,000.00. Amount still needed: $14,000.00 — about 28 months to reach at this savings rate.
Frequently Asked Questions
Why 3-6 months?
It's a commonly cited range from sources like the CFPB and many financial educators, meant to cover a period of job loss or major unexpected expense — not a rule tailored to your specific situation. Some people target more (e.g. single income, freelance/variable income) or less.
Where should an emergency fund be kept?
This calculator doesn't recommend a specific account, but emergency funds are typically kept somewhere accessible and low-risk, like a high-yield savings account, rather than invested in the market.
Should I build an emergency fund before investing?
That's a common personal-finance sequencing question this calculator doesn't answer — it only shows the size of the target and the time to reach it, not how to prioritize it against other goals.
This calculator provides estimates for informational purposes only and should not be considered financial, tax, or legal advice.