Emergency Fund Calculator
Find out how much you should keep in your emergency fund based on your real monthly expenses. See how many months your savings cover today, how much you still need and how long it will take to reach your goal.
Estimate only. Assumes you save the same amount at the end of each month and the APY stays the same. Interest is not adjusted for taxes.
Your goal at 3, 6, 9 and 12 months
How much each level of protection costs for your expenses, and how long it takes to reach at your current savings rate.
| Months covered | Target | Still needed | Time to reach |
|---|
How much should be in an emergency fund?
The most common guideline is three to six months of essential expenses. Where you land in that range, or beyond it, depends on how quickly you could replace your income and how many people depend on it:
- 3 months: two steady incomes, a secure job, good insurance and few dependents.
- 6 months: a single income, children or other dependents, or a job that could take a while to replace.
- 9 to 12 months: self-employed or freelance work, commission or seasonal pay, a health condition, or an older home or car that may need costly repairs.
If the full amount feels out of reach, start with a starter fund of $1,000 to $2,000, or one month of expenses. That covers most car repairs, medical bills and appliance failures. According to the Federal Reserve’s latest household survey, 63% of adults would cover a $400 emergency expense with cash or its equivalent, and 55% have set aside three months of expenses in an emergency fund.
Which expenses to count
Base your fund on what you must keep paying if your income stopped tomorrow, not on your normal spending. This usually makes the goal smaller and easier to reach.
| Include | Leave out |
|---|---|
| Rent or mortgage, property tax | Dining out and takeout |
| Utilities, phone and internet | Streaming and other subscriptions |
| Groceries | Travel and entertainment |
| Car payment, gas, transit | Retirement and other savings |
| Health, car and home insurance | Extra debt payments above the minimum |
| Minimum debt payments, child care | Shopping you could pause |
If you lose a job with employer health coverage, remember that insurance may cost more on your own. Unemployment benefits can help, but they usually replace only part of your pay and can take weeks to arrive.
Where to keep your emergency fund
An emergency fund should be safe, easy to reach and separate from the money you spend every day:
- High-yield savings account. The most popular choice. Online banks have recently paid around 4% APY, far more than the national average savings rate of 0.38% reported by the FDIC.
- Money market account. Similar rates, sometimes with check writing or a debit card.
- Short-term CDs or Treasury bills. Can work for the part of a large fund you are unlikely to need soon, but early withdrawals may cost interest.
Make sure the bank is FDIC-insured, or the credit union NCUA-insured. Deposits are protected up to $250,000 per depositor, per insured bank, for each account ownership category. Avoid keeping your emergency fund in stocks or crypto, since their value can drop just when you need the money.
How the calculator works
The calculator adds up your essential expenses, multiplies them by the number of months you choose and compares the result with what you have saved. It then adds your monthly savings plus interest, month by month, until you reach the goal.
The monthly rate is the equivalent of your APY, so interest compounds the way most savings accounts pay it.
Worked example: $3,250 a month in essentials
A household spends $1,500 on rent, $250 on utilities, $500 on groceries, $350 on transportation, $300 on insurance, $200 on minimum debt payments and $150 on other essentials. They have $5,000 saved and can add $400 a month to a savings account paying 4% APY.
- Essential expenses per month$3,250
- Six-month goal: $3,250 × 6$19,500
- Savings cover today1.5 months
- Still needed$14,500
- Time to reach at $400/month2 years 10 months
- Monthly saving to finish in 12 months$1,170
A three-month fund of $9,750 would take about 1 year, so a sensible plan is to reach that first, then keep going toward six months. Putting part of a pay raise or a tax refund into the fund can cut the time a lot.
Frequently asked questions
How much should I have in my emergency fund?
A common guideline is three to six months of essential expenses. If your essentials cost $3,250 a month, that is $9,750 to $19,500. Aim for more, six to twelve months, if you have a single income, work for yourself, have irregular pay or support others.
What expenses count toward an emergency fund?
Count only what you must keep paying if your income stops: rent or mortgage, utilities, groceries, transportation, insurance, minimum debt payments and other necessities. Leave out things you could pause, such as dining out, subscriptions, travel and extra debt payments.
Where should I keep my emergency fund?
Keep it somewhere safe and easy to reach, separate from your everyday checking account. High-yield savings accounts and money market accounts at FDIC-insured banks or NCUA-insured credit unions are common choices. Avoid investing it in stocks, since the value can fall right when you need the money.
Should I pay off debt or build an emergency fund first?
Many people start with a small starter fund of $1,000 to $2,000 or one month of expenses, then focus on high-interest debt, and then build the full fund. Without any cushion, a surprise bill often ends up back on a credit card.
How long does it take to build an emergency fund?
It depends on your target and how much you can save. Saving $400 a month with $5,000 already set aside, reaching a $19,500 six-month fund takes about 2 years 10 months at 4% APY. Saving your tax refund or part of a raise can shorten that.
This calculator is for educational purposes only and is not financial advice. Savings rates change and are not guaranteed. Your ideal emergency fund depends on your income, job security, health, insurance and family situation. Sources: Federal Reserve, Economic Well-Being of U.S. Households in 2025; FDIC deposit insurance and national rates.