How this calculator works
Target = essential bills × months of cover (3 months is the usual starting point, 6 for variable income). Time to build it is the gap divided by what you can put aside.
- Target = essential monthly bills × months of cover.
- Still to save = target − already saved.
- Months to build = still to save ÷ monthly savings, rounded up.
Worked example
With these inputs: essential monthly bills $2,400; months of cover 3; already saved $500; you can save per month $250.
The result is target fund $7,200.00, with still to save $6,700.00 and covered today 0 months.
How many months of cover?
Three months of essential bills is the usual starting target. Six months or more makes sense if your income varies (freelance, commission, seasonal work), if you're the only earner, or if your job would be slow to replace.
Count only essentials: housing, utilities, groceries, insurance, transport and minimum debt payments. In a real emergency, the extras stop.
Know your essential bills exactly
The target is only as accurate as your essential-bills number. Adding your bills to a bill tracker gives you a real monthly total instead of a guess. Keep the fund in a separate high-yield savings account so it's easy to reach but not mixed with spending money.
A money market account is a common home for the fund: easy to reach and paying interest. The money market calculator shows what your fund earns at your account's APY against the FDIC national average, and the CD ladder calculator staggers anything beyond the first months of the fund so a CD matures on a schedule.
Frequently asked questions
How much should I have in an emergency fund?
Three to six months of essential expenses is the common guideline. If your essentials are $2,400 a month, that's $7,200 to $14,400.
Should I save an emergency fund or pay off debt first?
Many people build a small starter fund first (often around one month of essentials) so a surprise doesn't go on a credit card, then focus on high-interest debt, then finish the full fund.
Where should I keep my emergency fund?
Somewhere safe and easy to reach, like a high-yield savings account. Keep it out of investments that can drop in value right when you need them.