Emergency fund calculator
Fund target in months of expenses, and progress towards it.
Fill in the fields and the result will appear here automatically.
An emergency fund translates a chosen number of months into a cash target using current expenses. Expenses of 85,000 require 510,000 for six months; income alone does not set this target. The shortfall, coverage and progress are separate. Both coverage and progress are capped at the chosen goal: five months of savings against a four-month goal shows four months and 100%. Reaching that goal does not guarantee protection from every emergency or imply that the excess should be invested.
How it works
Formula and logic
Target T = monthly expenses E × M months of cover. Shortfall = max(T−S,0), where S is saved. Progress = min(S/T×100%,100%); covered months = min(S/E,M). Expenses must be positive, months at least 1 and savings nonnegative. Fractional cover such as 2.5 months is allowed. Savings above the goal neither reduce the target nor increase the two capped rows. All money uses one currency and today’s prices.
Example
Expenses of 85,000 with a six-month goal need 510,000; 210,000 saved covers 2.471 months. Expenses of 50,000, a four-month goal and 250,000 saved give a 200,000 target, zero shortfall, 100% progress and coverage capped at four months.
Fields and units
- Monthly expenses — $
- Months of cover wanted — months
- Already saved — $
How to use
- — Enter your real monthly expenses, not your income.
- — Choose how many months of cover you want.
- — Enter what you have already set aside for this purpose.
- — Count only money you could actually reach within a day or two.
Method and limitations
- Calculation method
- Formula and logic
- Data or methodology source
- CFPB, United States: a reserve for unplanned expenses and an individual target
- Limitation
- Current expenses and a chosen target, without earnings or future contributions. Inflation, accumulation time, withdrawal restrictions and storage risk are not modelled. 100% means reaching the chosen amount, not universal financial safety.
FAQ
How many months should the fund cover?
Choose the months for your necessary expenses, income stability and possible unexpected costs. The default of six is a numerical example, not a personal recommendation. The calculator does not determine a universally sufficient reserve.
Should I use expenses or income?
Expenses, and the real ones. Income overstates the target for anyone who saves part of it, and the fund exists to cover what you must spend, not what you happen to earn.
Where should the fund be kept?
Somewhere reachable within a day or two and not exposed to price swings. A fund you cannot access on the day you lose your job is not performing its only function.
Why is progress capped at a hundred per cent?
It measures progress towards the selected goal. Expenses of 50,000, a four-month goal and 250,000 saved give a 200,000 target, no shortfall, 100% progress and four covered months. Total holdings cover five months, but this row is goal-capped.