How big a cushion you should keep, and how long to build it.
An emergency fund calculator shows how large a cash cushion you should keep and how long it will take to build it, based on your essential monthly expenses and the months of coverage you want.
Three to six months of essential expenses is the common range, but your situation sets the target: a stable dual income can lean toward three, while a single income, variable or commission pay, self-employment, or dependents argues for six or more. Size the fund to how quickly you could realistically replace your income, not to a round number.
An emergency fund's job is to be there instantly when something breaks, so it belongs somewhere stable and liquid, typically a high-yield savings account, not investments that could be down exactly when you need them. A little interest is a bonus, but never trade access or safety for yield on money you may need tomorrow.
Most households aim for three to six months of essential expenses. A single income, variable pay, or dependents can justify more.
Somewhere safe and quickly accessible, typically a high-yield savings account, not the stock market.
What you'd still owe if your income stopped: housing, utilities, food, insurance, and minimum debt payments.
See the exact formula and a worked example on our methodology page.