# What emergency fund do I need?

Works out an emergency fund target from essential monthly expenses and the months to cover, what is still to save, and how many months of saving it takes.

- Page: https://www.acalculator.org/finance/emergency-fund-calculator
- JSON spec: https://www.acalculator.org/finance/emergency-fund-calculator.json
- Version: 1f9de6560392

## Default answer

Example with the default inputs (Housing $1,500.00, Food $500.00, Transportation $400.00, Insurance and health $300.00, Debt and other $300.00, Months to cover 6, Already saved $2,000.00, Saving each month $500.00): Covering $3,000.00 a month for 6 months needs an emergency fund of $18,000.00; $16,000.00 is still to save.

## Inputs

| Key | Label | Description |
| --- | --- | --- |
| home | Housing | Rent or mortgage payment, property tax and utilities each month. |
| food | Food | Groceries and essential household supplies each month. |
| car | Transportation | Car payment, fuel, transit and parking each month. |
| ins | Insurance and health | Health, car, home and life insurance and medical costs each month. |
| other | Debt and other | Minimum debt payments, child care, phone and other must-pay bills each month. |
| m | Months to cover | How many months of essential expenses the fund should hold: often 3 to 6. |
| saved | Already saved | Money already set aside for emergencies. |
| save | Saving each month | How much you can add to the fund each month. Leave empty to skip the timeline. |

## Outputs

| Key | Label | Description |
| --- | --- | --- |
| target | Emergency fund target | Essential monthly expenses × months to cover. |
| expenses | Essential expenses per month | The sum of the five expense boxes. |
| gap | Still to save | The target minus what is already saved, or $0 once it is reached. |
| monthsToGoal | Months to reach the target | Still to save ÷ saving each month, rounded up to a whole month. |
| covered | Months covered now | Already saved ÷ essential monthly expenses. |
| funded | Share of the target saved | Already saved ÷ target, in percent. |

## Method

Target = (housing + food + transportation + insurance + other) × months; still to save = max(0, target − saved); months to reach it = still to save ÷ monthly saving, rounded up.

## Assumptions

- Only essential expenses count: what you must pay each month if your income stopped.
- The fund earns no interest, and expenses stay the same while you save.
- Saving amounts are deposited once a month; the last month may need less than the full amount.

## Worked examples

1. home = $1,500.00, food = $500.00, car = $400.00, ins = $300.00, other = $300.00, m = 6, saved = $2,000.00, save = $500.00 gives expenses = $3,000.00, target = $18,000.00, gap = $16,000.00, monthsToGoal = 32, covered = 0.666667, funded = 11.111111%. Source: FDIC Consumer Resource Center, Saving for the Unexpected and Your Future (at least six months of living expenses), https://www.fdic.gov/consumer-resource-center/2025-01/saving-unexpected-and-your-future.
2. home = $1,200.00, food = $450.50, car = $0.00, ins = $210.25, other = $139.25, m = 3, saved = $1,000.00, save = $250.00 gives expenses = $2,000.00, target = $6,000.00, gap = $5,000.00, monthsToGoal = 20. Source: FINRA, Financial Foundations: Start an Emergency Fund (three to six months of living expenses), https://www.finra.org/investors/personal-finance/start-emergency-fund.
3. home = $2,000.00, food = $600.00, car = $300.00, ins = $100.00, other = $0.00, m = 6, saved = $18,000.00, save = $300.00 gives target = $18,000.00, gap = $0.00, monthsToGoal = 0, covered = 6, funded = 100%. Source: FDIC Consumer Resource Center, Saving for the Unexpected and Your Future (at least six months of living expenses), https://www.fdic.gov/consumer-resource-center/2025-01/saving-unexpected-and-your-future.
4. home = $1,000.00, food = $0.00, car = $0.00, ins = $0.00, other = $0.00, m = 4.5, saved = $0.00, save = $0.07 gives target = $4,500.00, monthsToGoal = 64,286. Source: FINRA, Financial Foundations: Start an Emergency Fund (three to six months of living expenses), https://www.finra.org/investors/personal-finance/start-emergency-fund.

## FAQ

### How much should I have in an emergency fund?

FINRA says financial planners often recommend three to six months of living expenses, and the FDIC suggests at least six months. With $3,000 of essential expenses a month, that is $9,000 to $18,000.

### Which expenses should I count?

Only what you must pay each month if your income stopped: rent or mortgage, utilities, groceries, transport to work, insurance, medical costs and minimum debt payments. Leave out eating out, holidays and other spending you could pause.

### Should I save three months or six?

Fewer months can be enough with two steady incomes and stable jobs. Aim higher with one income, irregular pay, self-employment or dependants; FINRA notes that variable incomes may need a larger reserve.

### How long will it take to build my emergency fund?

Divide what is still to save by what you can put away each month, and round up. $16,000 still to save at $500 a month takes 32 months. A small start still helps: the CFPB notes that even a small amount gives some security.

### Where should I keep an emergency fund?

Somewhere safe and quick to reach. The FDIC suggests a federally insured product such as a savings account or a certificate of deposit. Avoid money you would have to sell investments to get at in a hurry.

### Does this calculator count interest?

No. It assumes the fund earns nothing and your expenses stay the same, so the timeline is a little cautious. Interest on a savings account shortens it slightly.

## Sources

- FINRA, Financial Foundations: Start an Emergency Fund (three to six months of living expenses). https://www.finra.org/investors/personal-finance/start-emergency-fund (retrieved 2026-10-01)
- FDIC Consumer Resource Center, Saving for the Unexpected and Your Future (at least six months of living expenses in a federally insured product). https://www.fdic.gov/consumer-resource-center/2025-01/saving-unexpected-and-your-future (retrieved 2026-10-01)
- CFPB, An essential guide to building an emergency fund. https://www.consumerfinance.gov/an-essential-guide-to-building-an-emergency-fund/ (retrieved 2026-10-01)