How big should your safety net be? Turn monthly essential expenses into a target fund, see how many months you already cover, and plan the gap.
Emergency fund target
How to use this tool
Housing, food, utilities, transport, insurance and minimum payments only.
3 for stable income, 6 as the common default, more for freelance or single-income households.
Only money that is instantly accessible and earmarked for emergencies.
To see how many months the gap will take to close.
Formula & worked example
Monthly essentials of $3,000 with a 6-month target give a $18,000 emergency fund. With $6,000 already saved you cover 2.0 months, have $12,000 left to save, and reach the target in 24 months at $500 a month.
Limitations — read this before you rely on it
Counts only essential expenses (housing, food, utilities, transport, insurance, minimum debt payments) — use essentials, not total spending, or the target will be overstated. It does not model income loss timing, insurance payouts or access delays; keep the fund liquid and separate from investments.
Frequently asked questions
3–6 months of essentials is the usual guidance: 3 for stable dual incomes, 6 or more for single incomes, freelancers, or volatile jobs. 12 months suits very irregular income.
Housing, food, utilities, transport, insurance and minimum loan payments — the costs you cannot pause. Discretionary spending (eating out, subscriptions, holidays) is not part of the target.
In an instantly accessible savings account, separate from everyday spending. It should not be invested in shares or locked deposits — the point is availability in a crisis.
Build a small starter fund first (often one month of essentials), then attack high-interest debt, then finish the full fund. Without any buffer, every surprise goes back on a card.
When it hits your target, redirect the monthly amount to investing or debt. Revisit the target after rent rises, a job change, or a new dependant — the target moves with your essentials.