Emergency Fund Calculator
Calculate your personalized emergency fund target based on your unique circumstances
An emergency fund is your financial safety net for unexpected expenses like job loss, medical bills, or major repairs. While the common advice is to save 3-6 months of expenses, the right amount for you depends on your job stability, family situation, and overall financial risk. Our calculator provides personalized recommendations based on your unique circumstances.
Open Source & Transparent
All calculations are open source and verifiable on GitHub. We believe in transparency and welcome contributions to improve our tools.
Your Recommended Emergency Fund
🏁 Getting Started!6 months coverage
$27,000
Current Savings
$5,000
Gap to Goal
$22,000
Coverage Now
1.1 months
Time to Goal
40 months
Monthly Essential Expenses
Enter expenses you must pay even during an emergency
Your Current Situation
Your Risk Profile
moderate Risk
Score: 5/10 • Recommended: 6 months
Risk Factors
- • Single income household
Protections
- • Stable W-2 employment
Quick Stats
Recommendations
📈 Focus on reaching 3 months of expenses before investing aggressively
💰 Keep your emergency fund in a high-yield savings account (4-5% APY currently available)
👥 Consider building toward 6+ months since you have a single income
💡 Try to increase savings to at least 10% of income for faster progress
Where to Keep Your Fund
Keep your emergency fund liquid and accessible. A high-yield savings account offers the best balance of returns and accessibility.
Why You Need an Emergency Fund
An emergency fund is money set aside specifically for unexpected financial emergencies. Unlike savings for goals like a vacation or down payment, an emergency fund is your financial safety net that protects you from going into debt when life throws curveballs.
Without an emergency fund, a single unexpected expense—like a job loss, medical emergency, or major car repair—can derail your entire financial plan and push you into high-interest credit card debt. Having adequate emergency savings provides peace of mind and financial stability.
What Counts as an Emergency?
✓ True Emergencies
- • Job loss or significant income reduction
- • Medical emergencies and unexpected bills
- • Major car repairs needed for work
- • Critical home repairs (roof, HVAC, plumbing)
- • Emergency travel for family crisis
- • Unexpected legal expenses
✗ Not Emergencies
- • Planned purchases or upgrades
- • Vacation or entertainment
- • Sales or "good deals"
- • Gifts or holiday expenses
- • Regular maintenance costs
- • Discretionary spending
How Much Emergency Fund Do You Need?
The right emergency fund size depends on your personal risk factors. Here's a general guide:
3 Months of Expenses
Suitable for those with stable employment and low financial risk.
- • Dual-income household
- • Stable government or union job
- • No dependents
- • Good health and insurance
- • Low debt obligations
6 Months of Expenses
The standard recommendation for most individuals and families.
- • Single income household
- • Private sector employment
- • One or two dependents
- • Average health situation
- • Moderate debt payments
9 Months of Expenses
Recommended for higher-risk employment situations.
- • Commission-based income
- • Freelance or gig workers
- • Specialized career (longer job search)
- • Multiple dependents
- • Chronic health conditions
12 Months of Expenses
Maximum security for high-risk or unique situations.
- • Self-employed or business owner
- • High-layoff industry (tech, etc.)
- • Nearing retirement
- • Single parent with dependents
- • Significant health concerns
Building Your Emergency Fund: A Step-by-Step Approach
Start with a Starter Fund
Begin by saving $1,000 as a mini emergency fund. This covers small emergencies while you work on larger goals.
Build to One Month
Your next milestone is one full month of essential expenses. This gives you breathing room for larger emergencies.
Reach Three Months
Three months is the minimum recommended for most people. At this point, you have basic financial security.
Achieve Your Target
Continue building until you reach your personalized target based on your risk factors (3-12 months).
Maintain and Replenish
Once funded, replenish any withdrawals as quickly as possible and adjust your target as circumstances change.
Where to Keep Your Emergency Fund
Your emergency fund should be easily accessible but separate from your everyday spending. Here are the best options:
High-Yield Savings
Best for most people. Currently earning 4-5% APY.
✓ FDIC insured • ✓ Instant access • ✓ No risk
Money Market Account
Similar to HYSA with potential for higher rates.
✓ FDIC insured • ✓ Check writing • ✓ Competitive rates
Treasury Bills
Government-backed with competitive yields.
✓ State tax exempt • ✓ Very safe • ✓ 4-12 week terms
Avoid: Investing your emergency fund in stocks, long-term CDs, or anything that could lose value or has withdrawal penalties.
Common Emergency Fund Mistakes to Avoid
✗ Keeping It in Checking
Too easy to spend accidentally. Keep it separate in a dedicated savings account.
✗ Investing in Stocks
Markets can crash when you need money most. Keep emergency funds in stable, liquid accounts.
✗ Using It for Non-Emergencies
That sale isn't an emergency. Reserve this fund only for true unexpected expenses.
✗ Not Adjusting Over Time
Reassess your target when circumstances change (new job, family changes, etc.).
Frequently Asked Questions
What if I can't afford to save for an emergency fund? ▼
Start with whatever you can, even $25-50 per paycheck. Automate transfers to make it easier. Look for areas to cut back temporarily, and consider side income. Even a small emergency fund provides some protection.
Should I stop 401(k) contributions to build my emergency fund? ▼
Don't stop contributions entirely—at minimum, contribute enough to get your employer match (that's free money). However, you might temporarily reduce contributions above the match level while building a starter emergency fund.
Does my emergency fund count toward my net worth? ▼
Yes, your emergency fund is an asset and counts toward your net worth. However, it should be mentally "reserved" and not considered available for spending or investing.
Can I use my Roth IRA as an emergency fund? ▼
You can withdraw Roth IRA contributions (not earnings) without penalty, but this should be a last resort. Once withdrawn, you can't put the money back (contribution limits still apply), and you lose years of tax-free growth.
How often should I review my emergency fund target? ▼
Review annually or whenever major life changes occur: job change, marriage/divorce, new baby, buying a home, or significant changes in income or expenses.
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