Find out how big your emergency fund should be and how much to save each month to get there. Based on your essential monthly expenses and target months of coverage — 3 to 6 months is the standard goal.
How much to set aside
An emergency fund is cash set aside to cover unexpected costs — job loss, medical bills, car or home repairs — without going into debt. The standard rule of thumb is 3 to 6 months of essential living expenses. Multiply your must-pay monthly costs (rent or mortgage, utilities, food, insurance, minimum debt payments) by your target months to get your goal. For a household with $3,500 in essentials, a 6-month fund is $21,000.
Aim for 3 months if you have stable, dual income and few dependents; lean toward 6 months (or more) if you're self-employed, a single earner, or in a volatile industry. Keep the money somewhere safe and liquid — a high-yield savings account is ideal so it earns interest but stays instantly accessible. This calculator shows your target, how much you still need, and the monthly amount to reach it in your chosen timeframe.
Cover 3 months with stable income, 6+ months if self-employed, single-income, or in a risky field.
Park it in a high-yield savings account — safe, FDIC-insured, instantly accessible, and still earning interest.
Base the target on must-pay costs (housing, food, utilities, insurance, minimum debts) — not your full lifestyle budget.