Emergency fund calculator

How much emergency fund do you actually need?

Turn essential expenses, liquid reserves and income stability into a practical cash-runway target.

How it works

Start with risk, not a universal rule.

Runway divides liquid reserves by essential monthly expenses. The suggested target starts with income stability and adds a modest buffer when other people depend on the same income.

Formula

Emergency runway = liquid reserves ÷ essential monthly expenses

The calculation uses the values you enter and assumes the selected rates remain constant throughout the scenario.

Worked example

$15,000 of accessible savings against $2,500 of essential monthly expenses provides six months of runway. The appropriate target also depends on income stability and dependants.

Count genuinely liquid money

Use cash and accessible savings, not property or volatile long-term investments.

Use essential expenses

Include housing, food, insurance, transport, debt payments and necessary family costs.

Adjust for your reality

Variable income, dependants or a slow hiring market can justify a larger reserve.

Frequently asked questions

How to interpret the result

Is the result a prediction?

No. It is a transparent scenario based on your inputs. Returns, inflation, spending and personal circumstances can all develop differently.

How often should I update the calculation?

After a major financial change and at least a few times a year. For long-term decisions, consistent updates matter more than a one-time perfect estimate.

Does this calculator store my numbers?

No. The calculation runs in your browser. If you want history and a recurring monthly view, you can manage your figures inside Hugo.

Educational tool, not personal advice. Results use only your inputs and general assumptions. They are not investment, tax, legal or accounting advice.