Emergency Fund Calculator
Enter your essential monthly expenses to see your 3, 6, and 9-month fund targets — and how long it'll take to get there.
Essential Monthly Expenses
Only include costs you must pay in a crisis. Leave out subscriptions, holidays, eating out, and other non-essentials.
£
£
£
£
£
Fuel, rail pass, insurance
£
£
Credit card minimums, loans
£
£
£
Total essential monthly expenses
£1,710
Your Savings Capacity
£
Amount already saved for emergencies
£
What you can set aside each month
Your Fund Targets
3-Month Fund
—
Minimum safety net
6-Month Fund
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Recommended target
9-Month Fund
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Self-employed / variable income
Progress Towards Each Target
3-Month Fund0%
6-Month Fund0%
9-Month Fund0%
Time to Reach Each Target
—
to 3-month fund
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to 6-month fund
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to 9-month fund
Emergency Fund: How Much Is Enough?
An emergency fund is cash held in an easy-access account, available immediately if you lose your income, face a large unexpected bill, or need to leave a job at short notice. It is not an investment — it's a financial safety net.
The 3-6 Month Rule Explained
| Situation | Recommended Fund | Why |
|---|---|---|
| Employed, stable income, partner works | 3 months | Lower risk; two incomes provide buffer |
| Employed, sole earner, dependants | 6 months | Higher risk if income stops |
| Self-employed or freelance | 6–9 months | Variable income; no statutory sick pay or redundancy |
| Contractor between contracts | 6–9 months | Income gaps can last months |
| Near retirement | 12 months | Avoids forced asset sales in down market |
What Counts as Essential?
Essential expenses are the bills that remain in a crisis. They are not your current lifestyle spending — they're what you'd genuinely need to pay each month to keep a roof over your head and food on the table:
- Rent or mortgage
- Council tax
- Gas and electricity
- Water (if metered)
- Food and household basics
- Insurance (home contents, car if essential for work)
- Minimum debt repayments
- Mobile phone and broadband
- Essential prescriptions or care costs
Where to Keep an Emergency Fund
The account must allow same-day or next-day access with no penalty. Good options:
| Account Type | Pros | Cons |
|---|---|---|
| Easy-access savings (bank) | Instant access, FSCS protected, 4–5% AER in 2026 | Rate can change |
| Easy-access Cash ISA | Tax-free interest, instant access | Slightly lower rates |
| Premium Bonds (NS&I) | 100% safe, tax-free prizes, 1-month access | Variable prize rate, not guaranteed |
| Current account | Instant access | Near-zero interest |
| Stocks and Shares ISA | Higher long-term returns | Can fall in value — not suitable |
Frequently Asked Questions
3–6 months of essential expenses for most people. Essential expenses only — not your full monthly spending. If you're self-employed, a contractor, or a sole earner with dependants, aim for 6–9 months. Use the calculator above to find your personal target based on your actual costs.
Build a starter fund of £1,000–£2,000 first. Without any buffer, any unexpected cost sends you straight back to expensive borrowing. Then focus on high-interest debt (above ~8%). Once high-interest debt is cleared, return to building your full emergency fund before tackling low-interest debt like student loans or mortgages.
Yes. Income can stop suddenly — redundancy, illness, a business going under. High earners often have high fixed costs (mortgage, private school fees, car finance) that don't disappear with income. Higher earners also typically have worse credit terms if they've never needed to borrow — making expensive credit less available precisely when needed.
A credit card can provide short-term emergency liquidity, but it's not a substitute for a cash fund. Credit card limits can be reduced or withdrawn. Interest-free periods end. Not all emergencies are credit-card payable (for example, cash deposits, utility pre-payments). A real emergency fund is liquid, guaranteed, and not subject to credit decisions.
The difference is purpose and access. Emergency funds should be kept separate from goal-based savings (holiday fund, house deposit) — mixing them makes it tempting to raid the fund for non-emergencies. Keep it in its own account, ideally labelled "Emergency Fund." Easy-access accounts work well; you want the money accessible but slightly inconvenient to spend impulsively.