What’s an Emergency Fund?

An emergency fund is a dedicated savings account you only tap into during financial setbacks—like a job loss, medical emergency, or a major car or home repair. It’s designed to keep you from relying on high-interest debt or having to sell investments when a crisis strikes. A fully funded emergency fund is able to cover your essential expenses for three to six months and provides peace of mind during uncertain economic times and unexpected setbacks.

How to Calculate Your Emergency Fund

This tool helps you calculate how much you need to save each month to reach your emergency fund goal, offering a practical guide tailored to your unique situation. To get started, enter your information and navigate through the calculator. On the expense page, use the dropdown arrows to rename or remove expenses entirely—this ensures an accurate picture of what a fully funded emergency fund looks like for your situation.

How Much Money Should I Have in an Emergency Fund?

Most experts recommend saving enough to cover at least three months of take-home pay, but six or even twelve is ideal in some situations. This will cover every essential living expense—mortgage or rent, car payments, food, and more. The exact amount depends on your personal situation, including your job stability, dependents, and other obligations.

This calculator helps you determine the emergency fund amount that’s right for your life. Once you know your goal, take the next step with our Building Your Emergency Fund Coach to start saving with confidence.

How Do You Calculate Your Emergency Fund?

To calculate how much you need, add up your essential monthly expenses—like housing, utilities, food, and transportation—and multiply that total by the number of months you want to cover (e.g., three, six, or even twelve). That’s your savings target.

Where Should I Keep My Emergency Fund?

The ideal place for emergency savings is a high-yield savings account. It offers safety, easy access, and better returns than a traditional savings account. This allows you to keep your cash liquid and ready for whenever you need it most.

An emergency fund isn’t just a nice-to-have—it’s a financial safety net that can keep you afloat when life takes an unexpected turn. Whether you’re just starting to build one or fine-tuning your current savings strategy, this calculator will guide you every step of the way. By setting a personalized goal and storing your savings in a secure, high-yield account, you’re not just preparing for emergencies—you’re investing in peace of mind.

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Posted In: Savings