Emergency Fund Calculator
Find out how much you should save for emergencies based on your expenses and risk profile.
Your Situation
Recommended Emergency Fund
$24,000
6 months of expenses
Current Savings
$8,000
Coverage
2 mo
Gap
$16,000
Progress
Starter
3 mo
$12,000
Solid
6 mo
$24,000
Secure
6 mo
$24,000
Risk Assessment: Medium
Single income with stable employment
Disclaimer
- Recommendations are guidelines — your personal comfort level matters.
- Keep emergency funds in high-yield savings or money market accounts.
- Reassess after major life changes (job change, new baby, home purchase).
Why You Need an Emergency Fund
An emergency fund is money set aside to cover unexpected expenses — job loss, medical bills, car repairs, or home emergencies. According to a 2025 Bankrate survey, 56% of Americans cannot cover a $1,000 emergency with savings. Without a financial cushion, unexpected costs often end up on high-interest credit cards, creating a debt spiral that is difficult to escape.
How Much Emergency Fund Do You Need?
The right amount depends on your situation. Here are general guidelines based on employment stability and household structure:
| Situation | Recommended | Why |
|---|---|---|
| Dual-income household, stable jobs | 3 months | Lower risk of total income loss |
| Single-income household | 6 months | No backup earner |
| Freelancer / self-employed | 9-12 months | Irregular income, no unemployment benefits |
| Single with dependents | 6-9 months | Higher responsibility, less flexibility |
Where to Keep Your Emergency Fund
Your emergency fund should be liquid and accessible — not invested in volatile assets. The best options include high-yield savings accounts (currently 4-5% APY), money market accounts, and short-term Treasury bills. Avoid CDs with early withdrawal penalties unless using a ladder strategy. Never keep your emergency fund in brokerage accounts where market drops could reduce your safety net right when you need it most.
Building Your Emergency Fund Step by Step
Start with a mini goal of $1,000, then work toward one month of expenses. Automate transfers on payday — even $50/week adds up to $2,600/year. Use windfalls (tax refunds, bonuses) to accelerate progress. Once you reach your target, redirect that automatic savings toward retirement or other goals.
CFPB — Start Small, Save Up Program→Frequently Asked Questions
Is $1,000 enough for an emergency fund?
$1,000 is a good starting point, but it is not enough for most emergencies. A single ER visit can cost $2,000+, and job loss typically lasts 2-3 months. Aim for 3-6 months of essential expenses as your full target.
Should I pay off debt before building an emergency fund?
Build a small emergency fund ($1,000-$2,000) first, then focus on high-interest debt. Without any emergency savings, an unexpected expense will force you back into debt. Once high-interest debt is gone, build the fund to its full target.
Can I invest my emergency fund?
The core emergency fund (3-6 months) should stay in a high-yield savings account. If you have more than 6 months saved, the excess can be invested conservatively. But never invest money you might need within the next 6 months.
Want to compare savings options? Try our CD & Savings Calculator to see how your emergency fund can earn interest while staying safe.