Emergency Fund Calculator
Emergency Fund Calculator
How big should your emergency fund be, and how far are you?
"Essential expenses" means what it would actually cost to keep the lights on and food on the table - rent or mortgage, utilities, groceries, insurance, minimum debt payments - not your full current spending. Keep this fund in something boring and instantly accessible (a high-yield savings account), not invested.
Frequently asked questions
What's a reasonable percentage of income to save each month?
A commonly cited target is 20% of take-home income toward savings and investments, though the right number depends heavily on your expenses, debt, and goals. Starting with any consistent amount and increasing it over time matters more than hitting a specific percentage from day one.Read more: Emergency Fund Calculator: How Many Months Do You Actually Need?
How do I build a budget that actually sticks?
Budgets that fail are usually too restrictive to sustain. Tracking actual spending for a month before setting targets, building in a discretionary/fun category rather than eliminating it entirely, and automating savings so it happens before you can spend it all tend to work better than a rigid, all-or-nothing budget.Read more: The Least Exciting Account That Saves You From Everything
What's the 50/30/20 rule?
A simple budgeting guideline: roughly 50% of take-home income to needs (rent, utilities, groceries), 30% to wants (dining out, entertainment), and 20% to savings and debt repayment beyond the minimum. It's a starting framework, not a strict rule -- adjust the splits to your actual cost of living.Read more: Net Worth Calculator: The One Number That Tracks Real Progress
How much should I keep as an emergency fund?
A common guideline is 3-6 months of essential expenses, held somewhere liquid and low-risk rather than invested for growth. Build it before aggressively investing elsewhere -- it's what keeps a job loss or medical bill from forcing you to sell investments at a bad time.Read more: Inflation Calculator: What Today’s Dollar Will Buy Later
Estimates only, not financial advice. See our Disclaimer.
