Emergency Fund Calculator
Calculate how much you need for your emergency fund in the United Kingdom based on your monthly expenses, and how long it will take to build it. Free, no sign-up.
Your Expenses and Savings
For an emergency fund, prioritize liquidity over return — a short-term Fixed-Rate Savings Account is commonly used for this purpose.
Your Emergency Fund
Recommended Goal (6 months)
£180,000
£30,000/mo × 6 months of coverage
💬 In Simple Words
With expenses of £30,000/mo, you need £180,000 to cover 6 months of unexpected costs. You already have £10,000 saved — you're short £170,000. Saving £5,000/mo, you'd complete it in 2 years and 8 months.
Goal by Months of Coverage
This is a general reference. Adjust the months of coverage based on how stable your income is. Not financial advice.
How This Calculator Works
👋 Simple Explanation
An emergency fund is money set aside for the unexpected — job loss, a medical expense, an urgent repair — without resorting to expensive debt. The goal is calculated by multiplying your essential monthly expenses by the number of months of coverage you want to have.
Goal = Essential Monthly Expenses × Months of Coverage
To find out how long it'll take to complete the goal, the calculator simulates your contributions month by month, optionally applying a return (if you keep the money in an instrument that generates one), until it reaches the target amount.
Common Mistakes When Building an Emergency Fund
Keeping it in high-risk instruments. Chasing a better return with equities or equity funds exposes your emergency fund to losing value right when you need it most.
Not rebuilding it after using it. If you used the fund for a real emergency, the next step is to start saving again until it's back to full strength.
Mixing it with everyday spending. Keeping it in the same account you use day to day makes it easier to spend on something that isn't a real emergency.
Frequently Asked Questions
- How much money should I have in my emergency fund?
- A common reference is 3 to 6 months of your essential expenses (not your full income). If you have variable income, such as freelance work, it's worth aiming for a higher range, 6 to 12 months.
- What counts as 'essential expenses' for calculating my emergency fund?
- Rent or housing payment, food, utilities, transport, insurance, and minimum payments on existing debt. Discretionary spending (entertainment, dining out, non-essential purchases) generally isn't included, since in a real emergency it can be reduced or cut temporarily.
- Where should I keep my emergency fund?
- In liquid, low-risk instruments where you can withdraw the money quickly without penalty: an easy-access savings account or a short-term Fixed-Rate Savings Account, protected within FSCS limits (£120,000 per person, per authorised institution). Higher-risk instruments, like equities, aren't suitable for this fund.