Emergency Fund Calculator
Find out how large your emergency fund should be and how long it will take to build based on your expenses and monthly savings.
How Emergency Fund Calculator works
How large should an emergency fund be?
Financial advisers typically recommend 3–6 months of essential expenses (rent/mortgage, food, utilities, transport, minimum debt payments). Self-employed, freelancers, and those with irregular income should target 6–12 months. Those with stable employment and no dependants may be comfortable with 3 months.
What counts as essential expenses?
Include: housing (rent or mortgage), council tax, utilities, food, transport, insurance, minimum debt repayments, and childcare. Exclude discretionary spending (eating out, subscriptions, holidays) — you would cut these in an emergency.
Where to keep an emergency fund
An emergency fund should be instantly accessible. Use an easy-access savings account (not a fixed-term bond), a Cash ISA with no withdrawal restrictions, or a high-interest current account. Prioritise accessibility over maximising return — this money may need to be available within 24 hours.
Frequently asked questions
How much should I have in an emergency fund?
3–6 months of essential living expenses. If your essential costs are £2,500/month, target £7,500–15,000. Self-employed people or those with variable income should target 6–12 months.
Should I invest my emergency fund?
No. Your emergency fund must be instantly accessible and capital-protected. Investments can fall in value and cannot always be sold quickly. Keep your emergency fund in a savings account separate from your investment accounts.
Should I pay off debt or build an emergency fund first?
Build a small emergency fund (1 month) first, then aggressively pay down high-interest debt, then build the full 3–6 month fund. Without any buffer, unexpected expenses force you back onto expensive credit.
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