Emergency fund calculator
Size a cash buffer against what you actually have to spend, not what you earn, and see how long it takes to fill.
Emergency fund target
$9,600.00
3 months of essential spending — you have 1.3 months covered
- Still to save
- $5,600.00
- Time to fully fund
- 14 months
- Months covered now
- 1.3
| Essential spending a month | $3,200.00 |
|---|---|
| Recommended months (stable) | 3 |
| Target | $9,600.00 |
| Already saved | -$4,000.00 |
| Gap | $5,600.00 |
A stable two-earner household needs 3 months of essentials; self-employed income pushes it to 9, because the gap between jobs is longer.
Do you qualify
How this is calculated
Months, not a round number
The target is a multiple of essential spending: 3 months on a stable salary, 6 for variable or single-earner income, 9 for self-employed. Each dependant adds half a month, capped at 3 extra so the target stays reachable.
target = essential spending × monthsEssential is narrower than you think
Essentials are the payments that continue whether or not you have income: housing, food, utilities, transport, insurance, minimum debt repayments. Subscriptions, dining and holidays are not. For most households essentials are 60–70% of total spending, so sizing the fund from the full budget overshoots by a third.
Worked example: $3,200 of essentials a month, stable salary
| Essential spending | $3,200 |
|---|---|
| Income | Stable, two earners |
| Already saved | $4,000 |
| Target | $9,600 |
|---|---|
| Gap | $5,600 |
| At $400 a month | 14 months |
The same household with self-employed income needs $28,800 — the buffer scales with how long the income could stop, not with the spending itself.
What this assumes
- Essential spending stays flat during an emergency.
- The fund sits in cash you can reach same-day.
- No income at all during the covered period.
- Insurance excesses are paid from the fund.
Where this commonly goes wrong
- Sizing the fund from gross income rather than essential spending overshoots by 40% or more for most households.
- Money in a term deposit or a 30-day notice account is not an emergency fund — the emergency will not wait.
- Health and car insurance excesses are the most common first claim on the fund and are usually left out of the target.
Questions
How many months should an emergency fund cover?
Three months of essential spending if you have stable salaried income and another earner in the household. Six if your income is variable or you are the only earner. Nine or more if you are self-employed, where the gap between contracts is the real risk.
Where should I keep an emergency fund?
In a separate high-interest savings account at a different institution from your everyday account. Separate enough that you do not spend it by accident, reachable enough that you have the money the same day you need it.
Should I build this before paying off debt?
Build a small buffer of about one month first, then attack high-interest debt, then finish the fund. Without any buffer the next unexpected bill goes back on the card you are trying to clear.
Does a credit card count as an emergency fund?
No. A card converts an emergency into a debt at 18–22%, and limits get cut precisely when the economy turns. It is a last resort behind the fund, not a substitute for it.
What counts as essential spending?
What you would still have to pay with no income: housing, food, utilities, transport, insurance and minimum debt repayments. Streaming, gym, dining and holidays are not essential in the month the income stops.
Is a bigger fund always better?
No. Beyond about twelve months, cash loses buying power to inflation faster than it earns interest. Once the fund is full, further savings do more work invested or paid against a mortgage.
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Sources
This calculator does arithmetic on the figures you enter. It does not account for tax, fees, or your personal circumstances.
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