Emergency Fund Calculator - 3, 6, 12 Month Emergency Savings

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What this means

How Much Emergency Fund Do You Need?

An emergency fund protects you from job loss, medical bills, and unexpected expenses. The key is matching your target to your specific financial situation and risk tolerance.

Building the right emergency fund

An emergency fund protects you from job loss, medical bills, and unexpected expenses. A common guideline is 3–6 months of expenses: 3 months for stable dual‑income households, 6 months for variable income, and up to 9–12 months for single‑income or self‑employed households. This calculator sets a target and a realistic monthly plan to reach it.

Enter monthly expenses, choose your target months, and include what you’ve already saved. You can add sinking fund categories (like car repairs) to separate long‑term one‑off costs from true emergencies. If you carry high‑interest debt, consider balancing debt payoff with a modest starter fund.

Once your baseline safety net is in place, review your plan quarterly and increase savings during higher‑income periods. For investing long‑term surpluses, use the Compound Interest calculator.

Frequently Asked Questions

How much should my emergency fund be?

A common rule is 3–6 months of essential expenses. Use the calculator above to model 3, 6, or 12 months and see your emergency fund ratio. For stable dual-income households, 3 months may be sufficient. For single-income or variable income households, 6-12 months is recommended. The calculator will show you exactly how much to save based on your monthly expenses.

What is an emergency fund ratio?

It's your emergency savings divided by monthly essential expenses. A ratio of 3.0 means you have 3 months of expenses saved, 6.0 means 6 months, and so on. Generally, a ratio of 3-6 is considered healthy, while 6+ provides extra security for high-risk situations.

Is 6 months always necessary?

Not always. Stable income may justify 3 months; variable income or dependents may call for 6–12 months. Consider your job security, industry stability, and family situation when determining your target.

Where should I keep emergency funds?

High‑yield savings accounts are the most common choice—they're liquid and typically pay better interest than checking while keeping funds safe and accessible.

Should I invest my emergency fund?

Generally no. Emergency funds should be stable and liquid so they're available when needed. Invest only money you won't need for several years.

How do sinking funds differ from emergency funds?

Sinking funds cover expected but irregular costs (car repairs, medical, travel). Emergency funds cover true surprises like job loss or major emergencies.

How do I start building an emergency fund?

Start with a $1,000 starter fund, then build to 1 month of expenses, then work toward your full target. Use the calculator to set realistic monthly savings goals and track your progress over time.

What expenses should I include in my emergency fund calculation?

Include essential expenses like housing, food, utilities, transportation, insurance, and minimum debt payments. Exclude discretionary spending like entertainment, dining out, and non-essential subscriptions.

How often should I review my emergency fund?

Review your emergency fund at least quarterly, or whenever your income or expenses change significantly. Adjust your target and monthly savings goals accordingly.

6-Month Emergency Fund Calculator

A 6-month emergency fund is often recommended for households with variable income, single earners, or those in industries with seasonal fluctuations. It provides a comfortable buffer for job searches, medical emergencies, or major home repairs. Use the calculator above and set your target to 6 months to see your specific needs.

Emergency Savings Calculator

Emergency savings are your financial safety net for unexpected expenses. For example, if your monthly expenses are $4,000, a 6-month emergency fund would be $24,000. This covers essential costs like housing, food, utilities, and transportation during difficult times.

Use the calculator above to determine your specific emergency savings target based on your actual expenses and risk tolerance.

Emergency Fund Ratio

Your emergency fund ratio = (Emergency fund ÷ Monthly expenses). A ratio of 3.0 means you have 3 months of expenses saved, 6.0 means 6 months, and so on. Generally, a ratio of 3-6 is considered healthy, while 6+ provides extra security for high-risk situations.

Note: These are general guidelines. Your specific needs may vary based on job stability, family size, and other factors.

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