How much should I keep in an emergency fund?

Most experts suggest 3 to 6 months of essential living expenses.

Where should I keep my emergency fund?

Use a high-interest, easily accessible bank account separate from day-to-day funds.

What counts as an emergency expense?

Only essentials: basic housing, food, utilities, medication/insurance, and minimum loan payments.

How often should I review my fund?

Annually, or after a big change in income/lifestyle.

Can I invest my emergency fund?

Prefer easy-access cash to preserve flexibility; avoid risking the principal.

Emergency Fund Timer

Calculator

Estimate how long your emergency fund will last given your monthly expenses.

Free to useNo data storedAI insightsUpdated: March 2026

An emergency fund gives financial breathing room if you lose your job, face unexpected bills or need to cover living costs in a crisis. Use our calculator to estimate exactly how long your current savings will last and see if you need to top up your buffer.

Enter Your Details

Real-World Examples

Job Loss Scenario

Jess has $8,000 in emergency savings and monthly expenses of $3,200.

Inputs Used:

emergencyFund:8,000monthlyExpenses:3,200monthsToSimulate:3

Jess’s fund will last roughly 2.5 months. She needs to boost savings to cover a 3-month safety net.

Medical Leave Scenario

Sam prepares for a possible 4-month medical absence with $16,000 in savings, $3,900 monthly expenses.

Inputs Used:

emergencyFund:16,000monthlyExpenses:3,900monthsToSimulate:4

Sam’s buffer will last just over 4 months, providing reasonable confidence for his time off.

Frequently Asked Questions

Glossary

Emergency Fund

Savings reserved strictly for financial emergencies like job loss, illness, or urgent bills.

Living Expenses

Monthly essentials: rent, food, utilities, insurance, loan repayments.

Buffer

An extra savings layer that protects you from financial shocks.

Safety Net

Funds set aside to cover living costs so you aren’t forced to borrow, liquidate investments or sell assets.

Related Tools

Budget Planner 50/30/20

Work out monthly income allocations for needs, wants, savings.

Savings Goals Tracker

Set and monitor progress towards multiple savings targets.

How to Use

1Enter your total emergency fund (cash savings set aside for emergencies only).
2Input your current average monthly living expenses.
3(Optional) Adjust the 'Simulate For' field to project over different timeframes.
4See how many months your emergency fund will last—and whether it covers the recommended 3–6 month safety net.
5Check your buffer against big changes (job loss, medical leave, etc).

Key Information

Financial advisors recommend 3–6 months of living expenses as a healthy emergency fund.
Emergency funds are for essentials: rent/mortgage, groceries, utilities, medical, insurance, loan repayments.
Review and adjust your fund size at least yearly or after major life changes.
Keep the fund in a high-interest, accessible savings account.

Pro Tips

Automate a small transfer after every payday until the fund reaches target size.
If your buffer drops (due to an emergency), top it up as soon as possible.
Name your savings account 'Buffer' or 'Peace-of-mind Fund' so you aren't tempted to dip in.

Avoid These Mistakes

Mixing emergency savings with daily transaction accounts (temptation to spend).
Setting the target too low (less than one month’s basics).
Forgetting to update expense numbers when lifestyle changes.

Disclaimer: Results are estimates only. This tool does not consider personal debt, investment income, or changing expenses. Speak to a financial adviser for tailored advice.

Last updated: March 2026