Emergency Fund Calculator: How Much Should I Save?
Inputs
Results
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| Month | Projected balance | Target |
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Methodology and formulas
Target = essential monthly expenses × months of cover.
Current coverage = current savings / essential monthly expenses.
Shortfall = target - current savings, floored at zero.
Zero-interest timeline = shortfall / monthly contribution.
APY projection applies optional monthly compounding to estimate the chart and time to goal.
Deadline mode solves the monthly contribution needed by the selected date.
Worked example: if essential expenses are £2,000 per month and the target is 6 months, the emergency fund target is £12,000. With £3,000 saved, current coverage is 1.5 months and the shortfall is £9,000.
Methodology, review, and sources
Last updated: June 23, 2026. This calculator is educational only and is not financial, tax, or investment advice.
Assumptions: essential expenses are the bills you would keep paying in an emergency; the target range uses 3-6 months as a common baseline and 6-12 months for higher-risk situations; APY is optional and projected monthly; taxes, fees, inflation, and account withdrawal limits are not modelled.
Review note: the formulas are deterministic and run in your browser. Review the inputs against your own budget before relying on the result.
Emergency fund guide
What counts as an emergency?
An emergency is urgent, necessary, and hard to delay: a job loss, essential car or home repair, medical bill, emergency travel, or an income gap. Planned purchases, holidays, routine upgrades, and predictable annual bills belong in separate sinking funds.
How much should I save?
A common target is 3-6 months of essential expenses. Include housing, utilities, groceries, transport, insurance, minimum debt payments, childcare, medical costs, and any other bills you must keep paying. Exclude spending you could pause during a crisis.
When is 3 months enough?
Three months may be reasonable when income is stable, there are multiple earners, expenses are flexible, insurance deductibles are manageable, and you have other reliable support.
When is 6-12 months safer?
Lean higher if you are self-employed, work on commission, have dependants, own a home, rely on one income, face high deductibles, or work in a field where finding a new role can take longer.
Where should I keep it?
Prioritise safety and access. A separate insured savings account or money market account is usually a better fit than stocks, long-term bonds, or fixed accounts with penalties.
How do I rebuild it after use?
Treat replenishment as the next short-term goal. Pause lower-priority savings, direct windfalls to the fund, and keep automatic transfers running until the target is restored.
Emergency fund FAQ
How many months should my emergency fund cover?
Start with 3-6 months of essential expenses. Consider 6-12 months if your income is variable, you are self-employed, you have dependants, or one income supports the household.
Is £1,000 enough to start?
Yes. A starter fund of £1,000, $1,000, or €1,000 can handle many smaller shocks while you build toward one month, three months, and then your full target.
Should I save an emergency fund or pay debt first?
Many households build a small starter fund first, then split extra cash between high-interest debt and emergency savings. Keep minimum debt payments in your essential expenses.
Should emergency savings include rent or mortgage?
Yes. Include rent or mortgage, utilities, groceries, transport, insurance, minimum debt payments, childcare, medical costs, and other bills you must keep paying.
Where should I keep the money?
Use an account that is safe and easy to access, such as an insured savings or money market account. Avoid locking emergency cash into volatile investments or accounts with withdrawal penalties.
How often should I review the fund?
Review it at least once or twice a year and after major changes such as moving, changing jobs, having a child, buying a home, or changing insurance deductibles.
How much do self-employed people need?
Self-employed and contract workers often target 6-12 months of essential expenses because income, taxes, and benefits can be less predictable.