Work out how many months your current savings would cover at your essential spending level.
Dividing savings by essential spending gives cover in months, the unit financial resilience is measured in. Any household income that continues reduces the monthly need and therefore stretches the same balance much further. Two-income households need proportionally less cover than single-income ones, which is why a flat six-month rule over- or under-shoots for most people.
Emergency Fund Months
Months of cover = savings ÷ essential monthly expenses
Months of cover = savings ÷ essential monthly expenses Dividing savings by essential spending gives cover in months, the unit financial resilience is measured in. Any household income that continues reduces the monthly need and therefore stretches the same balance much further.
Two-income households need proportionally less cover than single-income ones, which is why a flat six-month rule over- or under-shoots for most people.
This calculator takes 4 inputs: Emergency savings held, Essential monthly expenses, Household income that would continue, Target months of cover. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.