Emergency Fund Calculator
By FiscallyAI Editorial (AI-assisted) • Updated 2026-02-19 • Educational tool
Calculate your emergency fund target and create a savings plan to reach it.
Rent, utilities, food, insurance, transportation, minimum debt payments
High-yield savings accounts offer 4-5% APY
Your Emergency Fund Plan
Emergency Fund Target
$18,000
6 months of expenses
Current Progress
You're 3% of the way there!
Why You Need an Emergency Fund
An emergency fund is your financial safety net. Without one, unexpected expenses force you into debt — often high-interest credit card debt that's hard to escape.
What Counts as an Emergency?
- Job loss or reduced hours
- Unexpected medical bills
- Car repairs
- Home repairs (broken furnace, leaky roof)
- Family emergency requiring travel
NOT emergencies: Vacations, holiday gifts, new phone, "great sale" — these should be planned separately with sinking funds.
How Much Do You Actually Need?
| Situation | Target |
|---|---|
| Stable job, single, no dependents | 3 months |
| Typical household | 6 months (recommended) |
| Variable income (freelance, commission) | 6-9 months |
| Single income family | 9-12 months |
| High-risk industry | 12 months |
Where to Keep Your Emergency Fund
- High-yield savings account — Best option. FDIC insured, earns 4-5% APY, easily accessible
- Money market account — Similar to HYSA, may have check-writing
- Not recommended: Checking (too easy to spend), investment accounts (can lose value), CDs (locked away)
Tips to Build Your Fund Faster
- Start small — Aim for $1,000 first, then build to full target
- Automate — Set up automatic transfers on payday
- Use windfalls — Tax refund, bonus, gift → emergency fund
- Temporarily pause other savings — Focus on emergency fund first
- Side income — Put extra earnings toward the fund
What to Do After You Hit Your Goal
- Keep the money in a HYSA — don't invest your emergency fund
- Redirect that monthly savings to other goals (retirement, investments)
- Revisit annually — if expenses increase, increase your target
- If you use it, rebuild it — that's what it's for
Disclaimer: This calculator is for educational purposes only. Your actual emergency fund needs may vary based on your specific situation. Not financial advice.