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Emergency fund calculator
How much money to keep for a job loss or a surprise bill, based on your essential costs, and how long it takes to get there.
Short answer: an emergency fund should usually cover three to six months of essential expenses: housing, food, utilities, transport, insurance and minimum debt payments. Choose the higher end if your income is irregular or others depend on you. Multiply your essential monthly costs by the number of months to get your target.
How many months is right for you?
| Your situation | Months of essentials |
|---|---|
| Stable job, two incomes in the household, no dependants | 3 |
| One income, or children or others who rely on you | 6 |
| Irregular, seasonal or commission-based income | 9 |
| Self-employed, or a job that would take a long time to replace | 12 |
These are common rules of thumb, not advice for your situation.
Build it in steps
- Start with one month. One month of essentials covers most car repairs, vet bills and broken phones.
- Automate a monthly amount. Even a small transfer on payday adds up without a decision each time.
- Park windfalls here. Tax refunds, bonuses and gifts get you there faster.
- Refill after you use it. That is what it is for. Use it, then rebuild it.
Paying off debt at the same time? The debt payoff calculator shows how the order of payments changes your debt-free date.
Frequently asked questions
How much should I have in an emergency fund?
A common guideline is three to six months of essential expenses. Aim for the higher end if your income is irregular, you are self-employed, or others depend on you. Count only costs you would still have to pay if your income stopped.
What counts as an essential expense?
Rent or mortgage, utilities, groceries, transport you need, insurance, phone, childcare and minimum debt payments. Leave out eating out, subscriptions you could cancel, and savings contributions.
Where should I keep my emergency fund?
In an easy-access savings account separate from your spending account, so you can reach it in a day or two but are not tempted to spend it.
Should I build an emergency fund or pay off debt first?
A common approach is to save a small starter fund first, then pay off high-interest debt, then finish the full fund. Without any buffer, one surprise bill tends to go straight back on a credit card.
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