Emergency Fund Calculator

How to calculate Emergency fund calculator?

Multiply your essential monthly expenses by the number of months of coverage you want to hold.

Key formula: Emergency Fund Target = Monthly Expenses × Coverage Period (months)

Using the Emergency fund calculator calculator: an example

Example values: Monthly expenses = $3,000; desired coverage = 6 months; existing savings = $4,500.

Step-by-step calculation:

• Calculate target: $3,000 × 6 = $18,000 → Emergency fund target = $18,000.
• Subtract existing savings: $18,000 − $4,500 = $13,500 → Amount still needed to save = $13,500.
• Set a savings plan: To reach the goal in 12 months save $13,500 ÷ 12 = $1,125 per month.
• Revisit your target after major life changes or yearly to ensure it still fits your needs.

Frequently Asked Questions

Should I include non-essential spending in monthly expenses?

No. Use essential expenses only, such as rent, utilities, groceries and insurance, to size a reliable emergency fund.

How many months of expenses should I aim for?

Most people aim for 3 to 6 months. Choose a longer period if you have variable income, high job risk, or significant financial obligations.

What do I do if I already have some savings?

Subtract existing savings from the target to find the amount still needed, then create a monthly saving plan to reach that gap.