Emergency Fund Calculator
Calculate how much you need in your emergency fund based on your monthly expenses, job stability, and personal situation. Get a personalized recommendation and track your progress toward financial security.
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Your Situation
Recommended Emergency Fund
3 to 6 months of expenses
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Emergency Fund Guidelines
Why 3-6 Months?
The standard recommendation is 3-6 months of expenses. This covers most job losses (average unemployment is 5-6 months) and unexpected emergencies without being excessive.
Where to Keep It
Keep your emergency fund in a high-yield savings account. It should be easily accessible but separate from your checking account to avoid temptation. Don't invest it in stocks.
What Counts as Emergency
True emergencies: job loss, medical emergencies, essential car/home repairs, unexpected travel for family emergencies. NOT emergencies: vacations, sales, planned expenses, wants.
Frequently Asked Questions
How much should I have in my emergency fund?
Most experts recommend 3-6 months of essential expenses. However, the right amount depends on your situation:
- 3 months: Dual income, stable jobs, no dependents
- 6 months: Single income, moderate job stability
- 9-12 months: Self-employed, unstable industry, single parent
Where should I keep my emergency fund?
Keep your emergency fund in a high-yield savings account (HYSA):
- Easily accessible within 1-2 days
- FDIC insured up to $250,000
- Earns interest (currently 4-5% APY)
- Separate from checking to avoid temptation
Don't invest it in stocks or lock it in CDs—liquidity is essential.
What counts as an emergency?
True emergencies:
- Job loss or significant income reduction
- Medical emergencies and unexpected health costs
- Essential car repairs needed for work
- Critical home repairs (roof leak, broken furnace)
- Unexpected travel for family emergencies
NOT emergencies: Vacations, sales, gifts, planned expenses, wants
Should I pay off debt or build emergency fund first?
Build a starter emergency fund of $1,000-2,000 first, then focus on high-interest debt. Without any emergency fund, you'll likely go deeper into debt when emergencies happen. Once high-interest debt is paid, build your full 3-6 month emergency fund.