Emergency Fund Calculator

Calculations are deterministic estimates based on user-provided inputs. Methods multiply expected monthly needs or a portion of annual income and then apply multiplicative adjustments for job stability and number of dependents. Predictable annual costs are converted to a monthly equivalent and added to the target.

Job stability is applied as a multiplicative factor to account for the likelihood and expected duration of income disruption. Each dependent increases the target incrementally to reflect additional household obligations.

This tool follows best-practice risk-management principles (see ISO 31000) for framing risk-adjusted buffers and applies conservative rounding to avoid underestimation. It is an informational estimator and not individualized financial advice.

Choose the method that best matches your situation. Months-of-expenses is simplest; income-percentage scales with earnings; scenario is useful when a specific large cost is likely.

Adjust job stability and dependents to reflect your household. Review and update your target if your recurring expenses, employment situation, or household composition change.

Example 1: If monthly essentials are $3,000 and you want 6 months, with moderate job stability and no dependents, the months-method target is 3,000 × 6 = 18,000 (plus any predictable yearly costs).

Example 2: If annual income is $80,000 and you use 5%, the raw income target is 4,000; after adjustments for instability and dependents, the recommended target will be higher.