Solverly

Emergency Fund Calculator

The Emergency Fund Calculator shows a right-sized cash buffer—how many months of essential expenses to keep and the dollar amount to target. It’s useful when planning for job loss, medical bills, unexpected repairs, or variable income, so you can decide how much to hold in cash without over-parking money.

This tool helps you turn a broad savings goal into a practical plan: set a target, choose a timeline, and see how consistent deposits get you there. The aim is simple—build resilience before you need it—so you can handle surprises without debt, avoid selling investments at the wrong time, and protect your long-term goals with a calm, well-funded safety net.

Enter your monthly expenses to set a 3–12 month emergency fund goal and see how much to save each month to stay protected.

Enter your numbers

Quick breakdown

Goal size
$21000.00
Shortfall
$19500.00
12-mo plan (per month)
$1590.42
If we save (optional)
—
Time to goal
—
Projected date
—

Results interpretation

The goal is a simple product of expenses and target months. The shortfall shows how much we still need. We also estimate a per-month amount to hit the goal in twelve months and give a table for different horizons. If we provide a planned monthly savings, we show a timeline and a projected date.

  • 3–6 months fits stable incomes with strong insurance.
  • 9–12 months fits variable income, single-income households, or dependents.
  • Yield slightly lowers the needed contribution; safety and liquidity matter more than chasing returns.

How it works

We size the fund and model growth with a monthly contribution and an annual yield. The contribution table solves for the monthly amount needed to reach the goal over common horizons.

Formulas, assumptions, limitations

Goal: G = expenses × targetMonths.

Contribution for horizon T: if i = APY/12, then C = (G − P(1+i)^T) · i / ((1+i)^T − 1); if i = 0, C = (G − P)/T.

Time to goal given C: if i > 0, n = ln((G + C/i) / (P + C/i)) / ln(1+i); if i = 0, n = (G − P)/C.

Assumptions: contributions at month-end; yield compounds monthly; no taxes or withdrawals during build.

Limitations: actual yields vary; emergencies may arrive before the target is met—build steadily and reassess after life changes.

Use cases & examples

Dual-income household

Expenses $4,200 • Target 4 months → Goal $16,800. With $3,000 saved at 4% APY, 12-mo plan needs ≈ $1,169/mo.

Single income with dependents

Expenses $3,800 • Target 9 months → Goal $34,200. With $5,000 saved, $2,450/mo builds the fund in 12 months.

Timeline from contribution

Expenses $2,900 • Target 6 months → Goal $17,400. Saving $500/mo at 3.5% APY reaches the goal in ~26 months.

Monthly needed by horizon

Horizon (months)Monthly amount
3$6473.38
6$3218.02
9$2132.94
12$1590.42
18$1047.96
24$776.79

Emergency fund FAQs

What expenses do we include?

Include essentials: housing, utilities, food, transportation, insurance, and minimum debt payments.

Should we keep the fund separate?

Yes—dedicate a savings account so we don’t accidentally spend it.

Can we use CDs?

Short CDs can work, but keep enough liquid for same-day access. Laddering balances yield and access.

Do we adjust for inflation?

Revisit the target annually; as expenses change, the dollar goal moves too.

What if we have high-interest debt?

Build a starter fund (e.g., $1,000–$2,000), then prioritize high-interest debt while slowly growing the fund.

Is a line of credit a substitute?

Credit can be a backup, but it’s not a replacement—limits can be cut when we need them most.

Emergency Funds That Work: Building Resilience One Month at a Time

We treat the emergency fund as a household shock absorber. The goal is simple: cover essential bills if income stops or an unexpected expense arrives, without liquidating long-term investments or taking on costly debt. A clear target and a consistent, automatic transfer usually beat complicated strategies.

Picking the right target

Three months fits steady paychecks and strong insurance. Six months is a common middle ground. Nine to twelve months fits variable income, seasonal work, or single-income households. If we’re in a field with frequent layoffs, we lean higher.

Where to keep it

High-yield savings accounts are simple and liquid. Some households mix a checking buffer for same-day needs with a savings account for the bulk. Money market funds are fine if settlement times and protections match our comfort.

Automate and escalate

We automate transfers on payday and increase them after raises or when a debt is paid off. Windfalls like bonuses or tax refunds can accelerate progress, especially early on.

After we hit the goal

Keep the fund topped off. From there, route extra savings to higher-priority goals: investing for retirement, paying down debts, or big planned purchases.

Common pitfalls

  • Counting discretionary items as “emergency.”
  • Chasing yield at the expense of access.
  • Letting spending creep raise expenses without updating the target.

Putting it all together

With a target, a transfer, and a timeline, we turn uncertainty into a plan we can follow. The numbers in our calculator make the trade-offs visible and help us stick with steady progress month after month.