Emergency Fund Calculator
Calculate how much you need in your emergency fund and how long it will take to save it based on your monthly expenses and savings rate.
An emergency fund is money set aside in a liquid, accessible account to cover unexpected expenses — job loss, medical bills, car or home repairs — without going into debt. Financial advisors universally recommend having one before investing.
How much to save: The standard recommendation is 3–6 months of essential living expenses. Some advisors suggest up to 12 months for self-employed people, those with variable income, or single-income households.
Calculate your target: Essential monthly expenses = rent/mortgage + utilities + food + minimum loan payments + insurance + essential transport
Emergency fund target = Essential monthly expenses × 3 to 6
Worked example: Monthly essentials breakdown:
- Rent: £900
- Utilities (gas, electric, water, internet): £180
- Food and groceries: £350
- Loan minimum payments: £120
- Insurance (health, car, contents): £110
- Transport (petrol/transit): £90 Total essentials: £1,750/month
3-month target: £5,250 6-month target: £10,500
Where to keep it:
- Instant-access savings account (high-street bank or online)
- Cash ISA (UK) — interest tax-free
- Money market account (US)
- NOT in stocks or investments (value can fall when you need it most)
- NOT in a fixed-term account (withdrawal penalties defeat the purpose)
How to build it: Set up an automatic transfer on payday — pay yourself first. Even £50/month becomes £600 in a year. Use windfalls (tax refunds, bonuses) to top it up faster.
What it is NOT for: Holidays, Christmas gifts, planned car maintenance, or home improvements. Those are expected costs — save separately for them as sinking funds.