Free calculator

Emergency Fund Calculator

Enter your essential monthly costs, what you’ve saved and what you can add each month to see how big an emergency fund to aim for, and how long it would take to get there.

Your emergency fund target

$18,000

6 months of $3,000 essential costs

Time to reach it: 2 years 7 months; by May 2029
Still to save: $16,000
Covered today: 0.7 months; of essential costs
Interest earned: $746; on the way

A 6-month emergency fund for $3,000 a month of essential costs is $18,000. Starting from $2,000 and saving $500 a month, you’d reach it in 2 years 7 months, by May 2029. You’d put in $17,500 in total, counting what you have now, and 3% APY would add about $746 of interest.

Milestones on the way

Measure	Amount	Time to reach
1 month of costs	$3,000	2 months
3 months of costs	$9,000	1 year 2 months
6 months of costs	$18,000	2 years 7 months

Your emergency fund over time

Month by month until it reaches $18,000: the money you put in, and the balance once interest is added.

Balance
You put in

What the finished fund is made of

Money you put in: $17,500(96%)
Interest: $746(4%)

Month by month

31 months of saving

What this calculator assumes

The target is your essential costs for one month multiplied by the number of months you choose. Your costs stay the same while you save, so rising prices aren’t included.
You add the same amount at the end of every month, starting next month, take nothing out, and stop once the balance reaches the target.
Interest is added once a month at the rate that adds up to the APY over a year, so a year’s interest matches the APY the bank shows. If your bank works out interest daily and pays it monthly, the result is almost the same.
The APY stays the same the whole time. Savings rates can go up or down whenever the bank changes them.
There are no fees, and the figures are before any tax on the interest.

These are estimates to help you understand the numbers, not financial advice. Check the exact figures with your lender or a qualified adviser before making a decision.

What an emergency fund is

An emergency fund is money set aside only for unplanned costs: a car repair, a medical bill, a broken appliance or a gap in income after losing a job. The Consumer Financial Protection Bureau (CFPB) describes it as a cash reserve kept apart from everyday spending, so a surprise doesn’t have to go on a credit card or loan.

That matters because borrowing makes a one-off cost bigger. Put a $1,000 repair on a card you can’t clear, and interest is added every month until it’s paid off.

How much to aim for

The usual rule of thumb is three to six months of expenses. FINRA, which oversees US brokerage firms, says that’s what financial planners often recommend, and that people with income that varies from month to month, or jobs that would be hard to replace quickly, may need more.

This calculator counts months of essential costs rather than everything you spend. If your income stopped, you’d still pay rent, groceries, utilities, transportation, insurance and the minimum on your debts, but you could probably pause eating out and subscriptions. That gives a smaller, more reachable target.

Six months can feel a long way off. The milestone table breaks the target into steps, starting with one month of costs, so you can see progress along the way. The CFPB also points out that even a small amount set aside gives you some protection.

How the calculator works

The target is your monthly essential costs multiplied by the number of months you choose.
Each month, interest is added on the balance at the start of the month, then your monthly saving goes in at the end of it. The calculator counts the months until the balance reaches the target.
The interest comes from the account’s APY (annual percentage yield): the interest earned in a year, including interest on interest. Banks must show it, so it’s the easiest number to find. The calculator turns it into an equal monthly rate that adds up to the APY over 12 months.

Worked example

Say your essential costs come to $3,000 a month and you want 6 months set aside. Your target is $3,000 × 6 = $18,000. You already have $2,000, so $16,000 is still to save.

Saving $500 a month in an account paying 3% APY, you reach the target in 2 years 7 months, by May 2029. You put in $17,500 in total, and interest adds $746.
The first milestone, one month of costs ($3,000), comes after 2 months; 3 months of costs ($9,000) after 1 year 2 months.
With no interest at all, the same saving takes 2 years 8 months. Saving $750 a month instead gets there in 1 year 9 months.

The monthly amount does most of the work: over the 2 years 7 months, you add $15,500 yourself and interest adds $746.

How many people have one

In the Federal Reserve’s Survey of Household Economics and Decisionmaking for 2025 (published May 2026), 55% of adults said they had set aside three months of expenses in an emergency or “rainy day” fund. That was unchanged from 2024 but below 59% in 2021. Among adults aged 18 to 29, the share was 37%.

The same survey found that 63% of adults would pay a surprise $400 expense with cash or its equivalent, and that 30% couldn’t cover three months of expenses by any means, including borrowing or selling things. People who usually had money left over at the end of the month were far more likely to have a rainy day fund.

Ways to build it

Make it automatic. A recurring transfer from checking to savings on payday means you don’t have to decide to save each month. The CFPB suggests keeping an eye on your checking balance so the transfer doesn’t cause an overdraft fee.
Split your paycheck. Some employers can pay part of your wages straight into a savings account through direct deposit.
Save windfalls. A tax refund, a bonus or a cash gift can jump you ahead several months in one go. Try adding it to “Saved so far” to see the difference.
Track your progress. The CFPB notes that checking your balance regularly and marking milestones can help you keep going.

Where to keep it

FINRA suggests a place that’s easy to get money out of and pays interest, such as a savings account at a bank or credit union that lets you withdraw at any time without a penalty. Deposits at an FDIC-insured bank are insured up to at least $250,000 per bank if the bank fails.

Rates vary a lot between accounts. The FDIC’s national average for savings accounts was 0.37% in its September 2026 figures, and some accounts pay more. The APY is the simplest way to compare them. Investing an emergency fund in stocks is riskier: prices can fall just when you need the money, and selling then would lock in the loss.

Guides on this topic

Frequently asked questions

How much should be in an emergency fund?

There’s no single right number. FINRA says financial planners often recommend three to six months of living expenses, and that people whose income varies, or whose jobs could be hard to replace, may need more. The CFPB suggests also looking at the surprise bills you’ve had before, such as car repairs or medical bills, and what they cost. This calculator uses months of essential costs, so you can try 3, 6 or any other number.

What counts as an essential cost?

Anything you’d still have to pay if your income stopped for a while: rent or mortgage payments, groceries, utilities, transportation to work, insurance, child care and the minimum payments on your debts. Spending you could pause, like eating out, subscriptions or vacations, can usually be left out, which makes the target smaller than your total monthly spending.

How long does it take to build an emergency fund?

It depends on the gap between what you have and your target, and on how much you add each month. Without interest it’s simply the gap divided by your monthly saving: $3,000 at $250 a month takes 12 months. Interest from a savings account shortens that a little. The calculator shows how long each milestone takes, starting with one month of costs.

Where can I keep an emergency fund?

FINRA suggests an account that is easy to get money out of and pays interest, such as a savings account at a bank or credit union, where you can withdraw at any time without a penalty. Deposits at an FDIC-insured bank are insured to at least $250,000 per bank. Investments such as stocks can fall in value just when you need the money. For CDs and money market funds, FINRA suggests checking how quickly you can get your money out and what fees or penalties apply.

Is it better to pay off debt or build an emergency fund first?

It’s a trade-off, and FINRA notes that people with high-interest debt have to decide how to balance the two. Some people keep a small fund for surprises while they pay down debt. Without savings, the CFPB points out, an unexpected bill can end up on a credit card or loan, where interest and fees can make it much bigger than the original cost.

How many Americans have an emergency fund?

In the Federal Reserve’s survey of 2025 (published May 2026), 55% of adults said they had set aside three months of expenses in an emergency or “rainy day” fund, down from 59% in 2021. Among adults aged 18 to 29, it was 37%. And 63% said they would cover a surprise $400 expense with cash or its equivalent.

When should I use my emergency fund?

The CFPB suggests setting your own rules for what counts as an emergency, such as a car repair, a medical bill or a drop in income, and sticking to them. When a real emergency happens, using the fund is what it’s for. Afterwards, the aim is to build it back up again.