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Emergency fund calculator
Your emergency fund target in months of essential costs, and how long it takes to get there.
With $3,000 of essential costs a month, six months of cover is $18,000. Starting from $5,000 and saving $500 a month, it takes 26 months to get there.
Your emergency fund target
$18,000
You have $5,000, enough for 1.7 months of essential costs.
Saving $500 a month, you reach it in 26 months.
| Months covered | Target | Still to save | Time at your saving |
|---|---|---|---|
| 3 months | $9,000 | $4,000 | 8 months |
| 6 months | $18,000 | $13,000 | 26 months |
| 9 months | $27,000 | $22,000 | 44 months |
| 12 months | $36,000 | $31,000 | 62 months |
How many months
An emergency fund covers essential costs while income stops, for example after a job loss. Three to six months is the range most often given; a single income, irregular pay or a long job search in your field are reasons to aim higher. In early retirement a cash reserve also lets you avoid selling investments right after a fall.
Only essential costs
Count what you could not cut in a hard month: rent or mortgage, food, utilities, insurance, transport and minimum debt payments. Leaving out travel and eating out keeps the target realistic.
Questions people ask
How much emergency fund should I have?
Enough for the months you choose times your essential costs: at $3,000 a month, $9,000 for three months, $18,000 for six and $36,000 for twelve.
How much emergency fund should I have in retirement?
Retirees often keep one to two years of withdrawals in cash so that a market fall does not force a sale. With $40,000 of yearly spending that is $40,000 to $80,000; see sequence of returns risk for why the first years matter.
Related
The FIRE calculator works out the portfolio your spending needs once the emergency fund is in place.
Last reviewed by Asier Fernández, editor, on . Educational information only, not financial advice. How we calculate