Emergency fund target
Multiply essential monthly expenses by your chosen months of coverage.
How this works
Target reserve = essential monthly expenses × chosen months of coverage. Additional savings needed = max(0, target reserve − current emergency savings). All amounts should use the same currency and the same definition of essential expenses.
Example
The illustration may use different inputs from the reproducible default inputs listed below.
The defaults give a target of $3,000 × 6 = $18,000. Subtracting $5,000 already saved leaves $13,000. With all reset-default inputs, target reserve: $18,000.
- Essential monthly expenses ($)
- 3000
- Chosen months of coverage
- 6
- Current emergency savings ($)
- 5000
- Target reserve
- $18,000
Scope and assumptions
Coverage months are your preference, not a recommended reserve level. This simple target does not model interest, inflation, changing expenses, insurance coverage or individual financial risks. Current savings above the target produce zero additional savings needed.
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