Start with essential expenses
An emergency fund is usually based on necessary expenses, not total lifestyle spending. Start with housing, utilities, groceries, insurance, transportation, minimum debt payments, and essential medical costs.
Common range
A common starting point is three to six months of essential expenses. A more conservative target may be useful for variable income, single-income households, dependents, or uncertain job markets.
Example
If essential expenses are $3,500 per month, a three-month fund is $10,500 and a six-month fund is $21,000. A nine-month cushion would be $31,500.
Use the calculator
Run your own estimate with the Emergency Fund Calculator.
Important note
This guide is educational only and is not financial, tax, legal, or investment advice.