Emergency Fund Calculator
An emergency fund is a dedicated cash reserve set aside to cover unexpected expenses or income loss — job loss, medical bills, urgent repairs — without going into debt. Financial planners generally recommend 3 to 6 months of essential living expenses.
Tip: Automate a small transfer to your emergency fund on payday. Starting with £25/week builds a £1,300 cushion in a year before you even think about it.
- 1Add up your essential monthly expenses: rent/mortgage, food, utilities, transport, insurance, minimum debt payments
- 2Multiply by your target months of coverage (3 for stable income, 6+ for variable income or dependants)
- 3Keep the fund in a high-yield savings account — accessible but separate from daily spending
Self-employed
Freelancers and contractors should aim for 9–12 months due to income volatility and lack of employer sick pay.
Dual income households
Two incomes provide a natural buffer — 3 months is often sufficient if both partners have stable employment.
Fun Fact
A 2023 Bankrate survey found that only 44% of US adults could cover a $1,000 emergency expense from savings — highlighting how underprepared most households are.