Emergency Fund Calculator
How big should your safety net be — and when will you actually have it? Size the fund in months of essential expenses, then see the date your current savings pace gets you there.
Your numbers
Bare-bones essentials only: housing, utilities, food, insurance, transport, minimum payments — not your full spending.
Your result
Interest is credited monthly at your APY. Keep the fund in a separate high-yield savings account — reachable in an emergency, but not one tap away from everyday spending.
How big should an emergency fund be?
The target is simple multiplication: essential monthly expenses × months of coverage. The right coverage depends on how replaceable your income is. Dual-income households with stable jobs often target 3 months; single earners, freelancers, commission-based workers, and anyone in a volatile industry should aim for 6–12.
Target = essential monthly expenses × months of coverage. The timeline above grows your savings month by month — contribution plus interest at your APY — until the balance reaches the target.
An emergency fund is not an investment. Its job is to be there, in cash, on the worst week of your year — which is why it belongs in an insured savings account earning a fair APY, not in the stock market, where a job loss and a market drop tend to arrive together.
Frequently asked questions
Should I build the fund before paying off credit card debt?
Build a small starter fund first — $1,000 or one month of expenses — so the next surprise doesn't go straight back on a card. Then attack high-APR debt, then finish the full fund. Paying 25% APR while holding a large cash fund earning 4% loses money every month; having no cushion at all loses the whole plan at the first car repair.
What counts as an emergency?
Job loss, a major car or home repair, a medical bill, essential travel for a family crisis. Not sales, vacations, or predictable annual bills — those deserve their own small sinking funds so the emergency fund stays untouched for real emergencies.
Where should I keep the money?
An FDIC-insured high-yield savings account, ideally at a different bank than your checking so transfers take a day or two — instant enough for a real emergency, slow enough to stop impulse use. Avoid accounts with withdrawal penalties or market risk.