Calculate how large your emergency fund should be and how long it will take to build. Based on your monthly expenses, income, and savings rate.
In Wealthos, these values come automatically from your added accounts, tracked income, expenses, and goals.
Wealth in 10 years
21k
Total saved
15k
Earned interest
+4k
An emergency fund is a cash reserve for unexpected expenses — job loss, medical bills, car repairs, or home emergencies. Without one, you may be forced to take on high-interest debt or sell investments at a loss. Financial experts recommend 3-6 months of essential expenses as a starting target.
The right amount depends on your situation. Single-income households, freelancers, and those with variable income should aim for 6-12 months. Dual-income households with stable jobs can target 3-6 months. Start with $1,000 as a mini emergency fund, then build from there.
Keep your emergency fund in a high-yield savings account — accessible within 1-2 business days but separate from your daily checking account. Avoid investing your emergency fund in stocks or locking it in CDs, since you need quick access without risk of loss.
Emergency Fund Target = Monthly Essential Expenses × Months of Coverage
This calculator sets a savings target based on 6 months of your monthly expenses. It then projects how quickly you can reach that target based on your monthly savings (income minus expenses) and the interest rate on your savings account. Adjust expenses to include only essentials — not discretionary spending.
With $3,500/month in essential expenses, a 6-month emergency fund target is $21,000. Starting with $2,000 saved and contributing $1,500/month at 4% interest, you'd reach $21,000 in about 13 months. That $1,500/month savings may feel aggressive, but it's temporary — once the fund is built, you can redirect those savings to other goals.
Calculate your essentials-only expenses for the target — rent, food, utilities, insurance, minimum debt payments. Skip discretionary costs like dining out and subscriptions.
If saving 6 months feels overwhelming, start with a $1,000 mini emergency fund, then build to 1 month, then 3, then 6. Incremental progress still protects you.
Keep your emergency fund in a separate high-yield savings account so you're not tempted to spend it. The friction of transferring between banks helps prevent non-emergency use.
Once built, only replenish after actual emergencies. Set a rule: if you dip into it, make rebuilding the fund your top financial priority until it's restored.