Emergency Fund Calculator
How much you should set aside before anything else. Enter your fixed monthly costs and what you've already saved, and see the target amount, what's left, and how many months until you get there at your own pace.
How we calculated this
Target = fixed monthly expenses × months of cushion. Remaining = target minus what you've already saved (never below zero). Months to reach it = remaining ÷ how much you save per month, always rounded up, so you never fall short of the goal.
Why 6 months, and when to adjust it
6 months of essential expenses is the most commonly cited figure, and it's a solid starting point for most situations: it covers the typical gap between losing an income and finding another, without having to resort to credit or sell something on bad terms. But it's not a fixed number for everyone. If you have stable employment in a low-turnover field, no dependants, and another income at home that keeps coming in even if yours stops, 3 months may be enough -- the real risk of needing the whole fund at once is lower. If, on the other hand, you're self-employed or have variable income, you're the household's only income, or you have children or other dependants to support, it makes more sense to aim for 9 or even 12 months. There's no single right answer -- what matters is being honest about how predictable your income is and how many people depend on it.
Where to keep your emergency fund
The rule is simple: it has to be liquid. That means you need to be able to access the money within a few days, with no penalties and no risk of it being worth less than you put in. A plain savings account or a short-term term deposit both work. It's not the place for stocks, ETFs, crypto, or any product whose value could drop right when you need it most -- the goal of this money isn't to earn the highest possible return, it's to be there when the rest of your budget doesn't stretch far enough.
What counts as an emergency (and what doesn't)
An emergency is an unexpected, necessary expense: losing your job, an urgent repair on the car you need for work, a leak at home, a health expense not covered by insurance. A promotion you "can't miss," an unexpected windfall, or a spontaneously decided holiday isn't an emergency -- that's regular budgeting, not this fund. Keeping that distinction clear is what stops the fund from being drained for reasons that were really just a lack of planning in that month's budget.
What this calculator doesn't do
It doesn't know whether you have other debt that might be worth prioritising before filling this fund completely, doesn't know your specific health or family situation, and doesn't replace thinking carefully about what you actually need. It's a starting point built from one number -- your essential expenses -- not a complete financial plan.
Frequently asked questions
How many months of expenses should I save?
6 months of essential expenses is the most common starting point. Lean closer to 3 months if you have stable employment, no dependants, and a second income at home. Lean closer to 9 or 12 months if you're self-employed or have irregular income, you're the household's only income, or you have dependants to support.
Where should I keep my emergency fund?
Somewhere liquid -- meaning you can withdraw it within a few days, with no penalty and no risk of it being worth less than you put in: a plain savings account or a short-term term deposit. It's not money for stocks, ETFs, or any investment product, even if the expected return looks better -- the point of this fund is to be there when you need it, not to grow.
What actually counts as an emergency?
An unexpected, necessary expense: losing your job, an urgent repair (car, home), a health expense not covered by insurance. A sale you "can't miss" or a spontaneous holiday isn't an emergency -- that's regular budgeting, not this fund.
Related tools
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Otterbond lets you set this fund up as a goal with a monthly amount and a target date, and you record each deposit to track progress, no spreadsheets required.
Try it freeEstimates based on general personal-finance rules, not financial, legal or tax advice.