Understand the result
Base the target on the bills that would survive a crisis
Emergency-fund rules of thumb are usually expressed in months of expenses, but the useful number is the dollar amount behind that rule. This calculator builds the target from the essential expenses you enter instead of guessing from income.
The result also shows how many months your current savings already cover and, if you are below the target, estimates the time required at your entered monthly saving pace.
What usually belongs in essential expenses
- Housing and utilities
- Basic food and household needs
- Insurance and medical costs
- Transportation needed for work or family
- Minimum required debt payments
- Other obligations that would continue during an income interruption