Free Emergency Fund Calculator
Enter your monthly essential expenses and current savings to see how much of an emergency fund you have and how long it will take to reach a 3 or 6 month target.
Emergency Fund Calculator
Mr B says: Three months is a starting point. If you're self-employed, have dependants, or work in a volatile industry, aim for six. Security has a dollar value.Why 3–6 months of expenses, not income
The standard emergency fund guidance is based on essential monthly expenses, not your full income. That distinction matters because it's what you'd actually need to cover if income stopped — rent or mortgage, utilities, groceries, insurance and minimum debt payments — not your usual level of discretionary spending. Calculating the target from expenses rather than income usually produces a smaller, more achievable number.
What pushes the target higher than 3 months
- Variable or freelance income: Without a predictable paycheque, a larger buffer smooths over inconsistent months.
- Being the sole income earner in a household: There's no second income to fall back on if something goes wrong.
- Working in an industry with longer average job-search times: Specialised or senior roles can take longer to replace than entry-level positions.
- Dependents: More people relying on the same income means less room for disruption.
If two or more of these apply, 6–9 months is a more realistic target than the standard 3.
Where to actually keep it
An emergency fund needs to be liquid and stable, not invested for growth. A high-interest savings account, separate from your everyday spending account, is the usual choice — accessible within a day or two, but not so easily accessible that it gets absorbed into regular spending. Keeping it invested in shares defeats the purpose: the whole point is that it's there and at full value exactly when you need it, including during a downturn.
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