Empower | emergency fund calculator

Unexpected expenses, including medical bills or car repairs, or the loss of a job or other income, can strain your finances. That's why building an emergency fund is an important step in planning your financial future.

However, over one in five Americans have no emergency fund at all. Whether you're already building your fund or want to start one, Empower's emergency fund calculator can help you estimate how much to save based on your expenses and goals.

How to use the emergency fund calculator

Empower's emergency savings calculator helps you estimate how much to set aside for unexpected expenses. Start by entering your monthly expenses, income and savings goal.

Not sure what your savings goal should be? Consider how many months of expenses make sense in your situation. For example, if you don't have a mortgage or kids and have a stable income, you might try to save 3 months' worth of expenses. Freelancers or commissioned sales reps with income that fluctuates might want to save 9 months' worth, and 6 months is a good general goal for most people.

How much emergency savings do you need?

How much you need in your emergency fund is a personal decision. It depends on how much you need to cover your monthly expenses and how many months' worth of funds you want to have on hand. Your job stability and dependents are also factors.

The following hypothetical scenarios can help you think about what would work best in your situation:

• A couple with three kids and fluctuating income: She's a real estate agent, and he sells cars. Their monthly income depends on how well they sell. With three mouths to feed, they may want 9 months' worth of expenses set aside just in case. If they need $5,000 a month for necessary expenses, that's $45,000 in emergency savings.

• A young professional with no mortgage or children: This single professional makes good money and has a stable job they can rely on. Without other financial obligations, they may be happy with 3 months of emergency savings. If they need $3,000 per month to cover expenses, that's $9,000.

Ways to build your emergency fund

• Create realistic savings goals based on your budget

• Have some of your paycheck automatically deposited into savings

• Earmark windfalls, such as tax refunds, for savings

• Cut unnecessary expenses, such as eating out, to build savings faster

Take the next step

Use the Empower emergency savings calculator to identify a savings goal.

Start Building Your Emergency Fund Now

FAQ

What is the 3-6-9 rule in finance?

The 3-6-9 rule is a general guideline for how many months of essential expenses to keep in your emergency fund:

• 3 months if your income is stable and you have a financial safety net

• 6 months as a general rule, if you have children or large financial obligations, such as mortgages

• 9 months if you're self-employed or have an irregular income stream

How do I calculate my emergency fund?

Begin by adding up essential monthly expenses, such as housing, transportation and food. Consider what bills should be included. Once you have a total, multiply that by the number of months you want your fund to cover — common choices are 3, 6 and 9.

How much is a 3-6 month emergency fund?

It depends on your lifestyle and monthly expenses. For example, if your essential monthly expenses total $4,000, your 3-6 month emergency fund would be $12,000 to $24,000.

Is $5,000 enough for an emergency fund?

It depends on your expenses and financial situation. For example, if your necessary expenses are $1,200 per month, then $5,000 covers a bit over 4 months.