How Much Emergency Fund Do You Need? — Step-by-Step Guide
Learn how to calculate your emergency fund target based on your expenses and income situation. Includes advice on where to keep it and how to build it faster.
Step 1: Enter your monthly essential expenses Include only true necessities: rent/mortgage, utilities, groceries, transport, insurance, and minimum debt payments. Do not include discretionary spending like dining out or subscriptions.
Step 2: Select your risk profile Choose 3 months (stable dual income), 6 months (single income or standard employment), or 9 months (freelance, contract, or variable income). Higher income uncertainty requires a larger buffer.
Step 3: See your emergency fund target The calculator multiplies your monthly essentials by your chosen number of months. This is your target balance.
Step 4: Enter your current savings Enter what you already have set aside in an emergency-only account. The calculator shows the gap you need to close.
Step 5: Set a monthly contribution Enter how much you can save toward your emergency fund each month. The calculator shows exactly how many months it will take to reach your target.