Safety Net Calculator
Work out roughly how big your emergency fund should be, based on your essential expenses, how stable your income is, and whether anyone depends on it.
Your details
Essential monthly expenses
Recommended safety net (3 months of expenses)
$10,500
Minimum (3 mo)
$10,500
Recommended (3 mo)
$10,500
Well-covered (5 mo)
$17,500
This is a general rule of thumb based on the common 3-6 month guideline, adjusted for household income structure, job stability and dependents. It is not personalized financial advice, your right number depends on your own circumstances, job security and risk tolerance.
How to use this calculator
- 1. Break it down by category: rent or mortgage, utilities, groceries, insurance, transport and minimum debt repayments, the costs you can't skip if your income stopped.
- 2. Set whether your household relies on one income or two, how stable your income is, and whether you have dependents.
- 3. The calculator shows a minimum, recommended and well-covered target, so you can pick a number that matches your own risk tolerance.
FAQ
Why three numbers instead of one?
Because emergency fund sizing is a rule of thumb, not an exact science. Showing a minimum, a recommended target and a well-covered figure is more honest than pretending there's one precise correct answer.
Should I use my total expenses or just essential ones?
Essential expenses only, the costs you'd still have to pay even if your income stopped: housing, food, utilities, insurance and minimum debt repayments. Leave out discretionary spending like eating out or subscriptions, since that's usually the first thing you'd cut.
Why break expenses into categories instead of one total?
Most people don't actually know their total essential spending off the top of their head, but can estimate rent, bills or groceries individually. Breaking it down also makes it obvious if you've forgotten something, like insurance or minimum debt repayments.
Why does income stability change the recommendation?
If your income is variable, casual, commission-based or contract work, gaps between pay are more likely and harder to predict, so a bigger buffer gives you more room to ride them out.
Where should I actually keep this money?
Somewhere you can access within a day or two without penalty, like a high-interest savings account. It shouldn't be invested in anything that can drop in value right when you might need it.
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Disclaimer
This calculator applies a general rule of thumb (3-6 months of essential expenses, adjusted for income structure, job stability and dependents) and is not personalized financial advice. Your own right number depends on your job security, health, family situation and risk tolerance. Consider speaking with a licensed financial adviser.