How this calculator works
The calculator totals the essential monthly costs you enter, multiplies that figure by your chosen number of months of cover and compares the target with your current emergency savings.
It also estimates how long your regular monthly saving could take to close the gap using the savings rate entered.
How to use it
- Enter only costs you would still need to cover during an income shock.
- Choose how many months of essential spending you want available.
- Enter savings already earmarked for emergencies.
- Add the amount you can contribute each month and an optional savings rate.
- Use the result to set a first milestone rather than waiting until the entire target feels achievable.
Assumptions and limitations
There is no universal correct emergency-fund size. Job security, household income sources, insurance, dependants, health, access to credit and the variability of essential costs all matter. Investment returns are not appropriate assumptions for money that needs to be readily accessible.