Emergency Fund Calculator
Calculate your emergency fund target and stress-test it with Monte Carlo simulation.
The Emergency Fund Rule of Thumb
An emergency fund is the foundation of all financial planning. Without one, a single unexpected expense — a job loss, a medical bill, a furnace replacement — can spiral into credit card debt, missed payments, and financial crisis.
The standard recommendation is 3-6 months of essential expenses, but your ideal target depends on your situation:
- Dual-income, stable jobs: 3 months may be sufficient
- Single-income or variable income: 6-9 months recommended
- Self-employed or freelance: 9-12 months provides real security
Use the Monte Carlo stress test above to see how your current savings perform under realistic scenarios with random expense spikes and income disruptions.
Emergency Target Formula
The calculation is strictly based on essential expenses—not your full income. This represents the absolute minimum cash required to keep your household running if revenue hits zero.
Manual Step: Sizing the Safety Net
You are a single-income earner targeting a 6-month safety net. Your take-home pay is $5,000/month, but your essential survival expenses are $3,200/month.