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Free · 3–6 months · HYSA-ready
Emergency fund calculator
Figure out your emergency fund target (3–6 months of essential expenses), the monthly contribution to get there, and the APY making your safety net work for you.
How many months of expenses do you need?
- Dual-income household, stable jobs: 3 months
- Single income or one earner self-employed: 4–5 months
- Variable income (commission, contract, freelance): 6 months
- Industry layoff risk or pre-retirement: 6–12 months
- Fully retired: 1–2 years in cash + bonds to avoid sequence-of-returns risk
What counts as 'monthly expenses'?
Only essentials — what you'd actually spend if you lost your income tomorrow. Not your full lifestyle.
- Rent or mortgage + utilities
- Groceries (cut by ~30% in true emergency)
- Health insurance + minimum medical costs
- Minimum debt payments
- Transportation (gas + insurance, not new car payments)
Strip Netflix, dining out, gym, travel. For most households, true essentials are 60–70% of normal spending.
Time to fund vs monthly savings
| Target fund | $300/mo | $500/mo | $1,000/mo |
|---|---|---|---|
| $5,000 | 17 mo | 10 mo | 5 mo |
| $10,000 | 33 mo | 20 mo | 10 mo |
| $15,000 | 50 mo | 30 mo | 15 mo |
| $20,000 | 67 mo | 40 mo | 20 mo |
Times include interest earned at 4.5% APY in a HYSA.
Emergency Fund Calculator FAQ
Where should I keep my emergency fund?
A high-yield savings account (HYSA) at 4–5% APY. FDIC-insured, no market risk, liquid in 1–3 business days. Don't keep it in a checking account (you'll spend it) or invested (it could be 30% down right when you need it).
Should I build an emergency fund before paying off debt?
Yes — at least $1,000 baseline first (Dave Ramsey's Baby Step 1). Then attack high-interest debt. Then build the full 3–6 month fund. Skipping the starter buffer means every minor crisis goes on a credit card and the debt cycle compounds.
Should I invest my emergency fund?
No. Emergencies happen on someone else's timeline, not yours — often during a recession when the market is also down 30%. Keep it in cash. The 4% APY you sacrifice vs investing is a small price for the certainty.
Can I count my Roth IRA contributions as my emergency fund?
Roth contributions (not earnings) can be withdrawn anytime, penalty-free. Some people treat it as a backup. The risk: withdrawing during a downturn locks in losses and you can't re-contribute beyond the annual limit. Build a real HYSA fund first.
How do I know if my emergency fund is enough?
Multiply your stripped-down monthly essential expenses (not lifestyle) × 3 to 6. If you can't quickly name your essential monthly number, track 3 months of spending and that's your starting point.
When should I tap my emergency fund?
Real emergencies only: job loss, medical bill, urgent car/home repair that prevents work. Not vacations, holidays, planned home upgrades, or known expenses. After use, refill it as fast as you built it.