How this calculator works
Checking has one job: pay everything that leaves it between two paydays without dipping below zero. So the balance you need right after payday is one pay period of bills and spending, plus a floor you never spend — your cushion or the bank's minimum balance, whichever is higher. Money above that line can go to savings.
- Per pay period = (monthly bills + monthly spending) × 12 ÷ paychecks per year (52 weekly, 26 every two weeks, 24 twice a month, 12 monthly).
- Floor = the larger of your safety cushion and the bank's minimum balance for avoiding a monthly fee.
- Keep right after payday = per pay period + floor. Just before the next payday the balance should be back near the floor.
Worked example
With these inputs: bills paid from checking each month $2,100; card and debit spending each month $900; how often you're paid Every 2 weeks; safety cushion you never touch $500; bank's minimum balance to avoid a fee $0.
The result is keep in checking right after payday $1,884.62, with leaves checking each pay period $1,384.62 and lowest point, just before payday $500.00. Bills rarely land evenly. If several big ones fall in the same pay period, plan that period with the Bill Due Date Planner.
Why pay frequency changes the answer
Two people with the same $3,000 of monthly outgoings need very different checking balances. Paid every two weeks, about $1,385 leaves checking between paychecks; paid monthly, the whole $3,000 does. The table under the result shows all four schedules side by side so you can see the effect of your own.
Averages hide timing. If rent and the car payment both fall in the first pay period of the month, that period needs more than the average. List your bills by due date with the Bill Due Date Planner or the bill calendar and size the heaviest period, not the typical one.
How big should the cushion be?
The cushion is there for timing — a bill that clears a day early, a paycheck that lands a day late, a card authorisation hold at a gas pump. It isn't an emergency fund. Many people pick a round number they'd notice going missing, such as a few hundred dollars, or one large bill. Emergency savings belong in a separate savings account where they're not spent by accident; the Emergency Fund Calculator sizes that.
If your bank charges a monthly maintenance fee below a minimum balance, the calculator uses the higher of the two as your floor, so the fee never triggers.
What to do with money above the target
Money sitting above the target is doing nothing for your bills. Moving it on payday to savings, a sinking fund for yearly bills, or extra debt payments puts it to work. This calculator doesn't recommend any account or product — compare terms yourself before you move money.
Sources
Frequently asked questions
How much money should I keep in my checking account?
Enough to cover one pay period of bills and spending plus a cushion. With the example — $2,100 of bills and $900 of spending a month, paid every two weeks, a $500 cushion — that's $1,884.62 right after payday, falling to about $500 before the next one.
Is it bad to keep too much in checking?
It isn't risky, but checking accounts usually pay little or no interest, so money well above your target could earn more in savings or cut interest on debt. Keep the target plus cushion and move the rest on payday.
Should my emergency fund be in checking?
Usually not. Keeping it in a separate savings account makes it less likely to be spent on everyday things. The checking cushion only covers timing gaps between bills and paydays.
What if I'm paid monthly?
Then one paycheck carries the whole month, so the balance right after payday has to cover every bill and all spending until the next one: $3,500 in the example. Spreading due dates across the month doesn't reduce that, but it keeps the balance from swinging to zero early.
Does this include bills paid by credit card?
Count what actually leaves checking. If bills go on a card, count the card payment instead of the individual bills, so nothing is counted twice.