Emergency Fund Calculator
Calculate how much emergency savings you should have based on your monthly expenses.
Calculate how much you need in your emergency fund based on your essential monthly expenses.
How Big Should Your Emergency Fund Be?
Standard advice: 3-6 months of essential monthly expenses. So if you spend £2,500/month on essentials (housing, food, utilities, transport, insurance, minimum debt payments), your emergency fund target is £7,500-15,000. Single earners need more (no income redundancy from spouse). Self-employed need more (irregular income, no sick pay). High earners with stable jobs: 3 months might be enough.
Emergency fund should cover sudden unemployment, major medical expenses, car/home emergencies, family crises. NOT for vacations, planned home improvements, or expected large bills (those should be saved separately). Keep in a high-yield savings account where you can access immediately - speed matters more than yield. UK Premium Bonds OK for partial allocation; not US savings bonds (lock-up periods).
Emergency Fund by Situation
| Situation | Months to Cover |
|---|---|
| Dual-income household, stable jobs | 3 months |
| Single income, stable job | 4-6 months |
| Self-employed/contractor | 6-12 months |
| Single, freelance/seasonal | 6-12 months |
| Pre-retirement (50+) | 6-12 months |
| High income but volatile | 6-9 months |
Frequently Asked Questions
Should I prioritise emergency fund or paying off debt?
Build a 'starter' £1,000-2,000 emergency fund first. Then attack high-interest debt (credit cards, payday loans, anything over 8%). After high-interest debt is gone, build full 3-6 month emergency fund while paying lower-interest debt simultaneously.
Where should I keep emergency fund?
Easy-access savings accounts at competitive rates (currently 4-5% APY at challengers like Chase, Marcus, Atom). NOT investments (stocks can fall 30%+ when you most need them). Premium bonds OK for part of fund (instant withdrawal, prize-fund returns). Easy access account separate from your main bank to avoid spending temptation.
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