Safety net

Emergency fund calculator

The usual advice is three to six months of expenses. That is right, but only if you size it off the essentials — the bills that do not stop when the income does. Sizing it off total spending inflates the target by a third and discourages the person who most needs the fund.

Your position

Currency

Changes the symbol on your figures. It does not convert them — there is no exchange rate here.

Rent or mortgage, food, utilities, insurance, transport, minimum debt payments. Not holidays or restaurants.

Leave at zero if you are not adding to it yet.

Months of cover

Three if your income is stable and salaried. Six or more if it is variable, or if you are the only earner.

Your target

Still to save

Months covered today

Full at this rate

This calculator needs JavaScript to recalculate. The figures above are a worked example, and every assumption behind them is written out below.

What this assumes

The target is essential outgoings only. In a month with no income the holidays and the restaurants stop on their own, and funding them is what makes the target look impossible.

No interest is assumed on the fund itself. It should be somewhere you can reach in a day, which usually means somewhere paying very little — and a fund that is invested is not an emergency fund, because emergencies and market falls arrive together.

What counts as essential

In

  • Rent or mortgage
  • Groceries
  • Utilities
  • Insurance
  • Transport to work
  • Minimum debt payments
  • Childcare
  • Phone

Out

  • Restaurants
  • Holidays
  • Subscriptions you would cancel
  • Clothes
  • Gym
  • Extra debt payments
  • Investing

The line is not “could I live without this” but “would I still be paying this in the month I lost my job”. Minimum debt payments are in. Anything above the minimum is out, because you would pause it.

Three months or six?

The honest answer depends on how long it would take you to replace your income, not on a rule. Three months is reasonable for a salaried role in a field that is hiring. Six is the sensible default. Nine to twelve makes sense if you are self-employed, on commission, the only earner in a household, or in a specialised role where the next job takes a while to find.

If you are in a country where losing your job also means losing your health insurance, size upward.

Build it before you invest, and before you overpay debt

An emergency fund is the thing that stops an unexpected bill becoming credit card debt at 22%. Without one, a boiler failure undoes a year of overpayments. The usual sequence is: a small starter fund, then any debt above roughly 8–10% interest, then the full fund, then investing.

Common questions

Should my emergency fund be invested?
No. Emergencies and market falls have an unhelpful habit of arriving together — a recession causes both the redundancy and the 30% drop. An emergency fund needs to be worth what it says on the day you need it, which means cash, in an account you can reach within a day.
Should I build the fund or pay off debt first?
Usually a small starter fund first — enough to absorb a car repair without borrowing — then attack anything above roughly 8 to 10% interest, then finish the full fund. Overpaying a credit card while having nothing in reserve tends to end with the card being used again.
Does a mortgage payment count as essential?
Yes. It is the bill that does not pause when the income does, and it is usually the largest single reason the fund needs to be the size it is.
What if I cannot get anywhere near three months?
Then the target is not three months, it is the next thousand. Almost all the benefit of an emergency fund comes from its first portion — the difference between nothing and one month is far larger than the difference between five months and six.

The app this comes from

The hard input here is the first one

Almost nobody knows their essential monthly outgoings to within a few hundred, because essentials and everything else arrive on the same statement. Separating them is exactly what a spending log is for.

Not out yet. TLDR Money International is in build for the United States and the United Kingdom first, on iPhone and Android. There is nothing to download and nothing to sign up to — when there is, this page will say so.

Last reviewed 20 August 2026. The arithmetic behind this page is covered by automated tests that run on every deploy.