What this calculator does

An emergency fund is cash set aside for essential costs if income falls or an urgent bill appears. This calculator turns monthly essentials into a target buffer and shows the gap from current savings.

Formula used

Target fund equals monthly essential costs multiplied by target months. Savings gap equals target fund minus current savings. Time to target equals the gap divided by monthly saving.

How to read the result

A higher target may suit people with variable income, dependants, older cars, home repairs or limited family support. A lower target may be enough when income is stable and essential costs are low.

Assumptions

  • Uses essential monthly costs, not full lifestyle spending.
  • Does not include interest earned on the emergency fund.
  • Assumes the same monthly saving is made every month.

Sources and checks

This calculator uses a standard public formula. Where rules or thresholds can change, source links are listed on the relevant page.

Frequently asked questions

Should I use gross income or expenses?

Expenses usually make a better target because the fund is there to cover bills, food, transport and other essentials during a disruption.