How much should you have in your emergency fund? Calculate based on your expenses and risk profile.
Monthly Essential Expenses
Savings Progress
Formula: Emergency Fund = Monthly Expenses × Months Coverage Time to Goal = (Target − Current) / Monthly Savings
Why You Need an Emergency Fund
An emergency fund protects you from unexpected expenses — job loss, medical bills, car repairs, home maintenance. Without one, these events often lead to high-interest credit card debt or loans.
How Much is Enough?
3 months: Dual-income household with stable employment
6 months: Most financial advisors' recommended minimum
9-12 months: Self-employed, single income, or volatile industry
Where to Keep It
High-yield savings account (currently 4-5% APY). Keep it liquid and separate from your regular checking account to avoid temptation.