Emergency Fund Calculator
Calculate how long it takes to build 3-6 months of expenses after paying off debt.
Who This Is For
If you just paid off debt (or are about to), this calculator helps you plan the next critical step: building a financial safety net. An emergency fund prevents you from going back into debt when unexpected expenses hit.
Example Scenario
Your monthly expenses are $3,000. You want a 6-month emergency fund ($18,000). You can save $500/month in a HYSA earning 4.5%.
Result: You'll reach your goal in about 33 months, and earn approximately $700 in interest along the way.
How It Works
This calculator simulates saving into a high-yield savings account month by month:
- Set your target (monthly expenses × months of coverage)
- Enter your current savings and monthly contribution
- Add your savings account interest rate
- See your month-by-month schedule to the goal
Interest compounds monthly on your growing balance, helping you reach your goal slightly faster than simple math would suggest.
Assumptions and Formula
Assumptions used in this model:
- Monthly contribution and savings yield remain constant.
- Interest compounds monthly in a cash savings account.
- No emergency withdrawals during the build period.
Target formula: target fund = monthly essential expenses × target months. The simulation adds each monthly contribution plus monthly interest until that target is reached.
How to Interpret Your Results
| Signal | What It Means | Action |
|---|---|---|
| Timeline over 24 months | Fund may build too slowly for risk profile | Temporarily cut spending or add income |
| Interest contribution is minimal | Contributions drive almost all progress | Focus on savings rate before yield chasing |
| 1-2 months coverage reached quickly | Short-term resilience is improving | Then push toward full 3-6 month target |
Educational tool, not financial advice. Savings rates vary. FDIC insurance limits apply. Consult a financial advisor for personalized advice.
Frequently Asked Questions
Deep Dive Guide
Read the Financial Priority Ladder guide
How much emergency cash to build before investing more aggressively.