Emergency Fund Calculator

Every personal finance article says "save 3 to 6 months of expenses." That's lazy. A 25-year-old software developer in Toronto with no kids needs a fundamentally different emergency fund than a 45-year-old contractor in a rural area with three kids.

The variables that actually matter:

• How stable is your income? Gov job vs. sales commission are different worlds.
• How fast could you replace it? Tech workers in major cities get jobs in weeks. Niche specialists in small markets can take a year.
• Who depends on you? Single = your problem. Family = their problem too.
• Do you have backup income? A side hustle, partner's salary, or rental income changes the math.

The milestones I actually use

• $1,000 starter - Covers most surprise expenses (car repair, broken laptop). Your first emergency fund milestone, before anything else.
• 1 month of expenses - Real buffer against payroll glitches and short job gaps.
• 3 months - Standard "you've made it" emergency fund for stable income.
• Your personal target - What this calculator gives you.

Don't over-save

An emergency fund larger than necessary is wealth you're choosing to earn ~2-4% on (HISA rates) instead of ~7-10% (market). Once you hit your target, stop adding to it and start investing. The opportunity cost of a too-large emergency fund is real.

This calculator uses general guidelines. Your actual emergency fund needs depend on your specific situation. When in doubt, err toward higher.