Emergency Fund Calculator
Calculate your ideal emergency fund size based on your monthly expenses.
Important Notice
These calculators are for educational and informational purposes only. Results are estimates based on the information you provide and should not be considered financial, tax, or investment advice. Your actual results may vary. For personalized guidance, please consult a qualified financial advisor, tax professional, or other appropriate expert.
People Also Ask
How much emergency fund do I need?
Common guidelines suggest 3-6 months of essential expenses. Those with variable income, single income households, or job instability often target 6-12 months for additional security.
Is 3 or 6 months of expenses better?
3 months may be sufficient for those with stable employment and dual incomes. 6+ months is common among self-employed individuals, variable income situations, unstable industries, or single-income households.
Where should I keep my emergency fund?
High-yield savings accounts are commonly used for emergency funds because they are liquid, FDIC insured, and earn interest. Stock market investments carry risk of losses when funds may be needed most.
Does an emergency fund earn interest?
Yes, if stored in a high-yield savings account. Current rates vary from 4-5% APY. Emergency funds typically prioritize accessibility and safety over maximum returns.
What counts as an emergency?
True emergencies include job loss, medical expenses, urgent home or car repairs, and unexpected essential costs. Sales, vacations, and predictable expenses are not emergencies.
Should I invest my emergency fund?
Emergency funds are typically kept liquid and stable rather than invested. Market investments can lose value precisely when funds may be needed most (during recessions that often coincide with job losses).
How long does it take to build an emergency fund?
At a 20% savings rate, building 3 months of expenses takes roughly 15 months. Some start with a smaller target like $1,000 before building to 3-6 months.