What is an emergency fund?

An emergency fund is a sum of money set aside to cover unforeseen and unavoidable expenses, such as job loss, medical emergencies, major car repairs, or home issues. It acts as a financial safety net, preventing you from going into debt or dipping into your long-term savings.

Use this calculator to estimate the amount of your emergency fund. Enter your average monthly expenses, the number of months you wish to cover (usually 3 to 6 months), your current savings, and optionally, an amount you can save each month or a target period to reach your goal.