Emergency Fund Calculator
Determines the appropriate emergency fund size based on essential monthly expenses, income stability, and household factors. Calculates how much to save monthly to reach the target within a specified timeframe.
Personal - Emergency Fund Calculator.xlsx
Excel (.xlsx) — No macros — Works in Excel, Google Sheets, LibreOffice
What This Spreadsheet Solves
- No data-driven target for emergency savings
- Unclear how many months of expenses to cover
- No plan to reach the target within a realistic timeline
- Difficulty accounting for variable income stability
- Existing savings may already partially cover the need
Who This Is For
- Individuals building their first emergency fund
- Freelancers and contractors with irregular income
- Financial planners setting savings milestones for clients
- Households adjusting emergency reserves after life changes
Inputs
- $Monthly Essential Expenses
- $Current Emergency Savings
- $Monthly Amount Available to Save
- #Income Stability Score (1-10)
- #Number of Dependents
- dateTarget Completion Date
Outputs
- Recommended emergency fund target
- Current coverage in months
- Gap between current savings and target
- Required monthly savings to hit target by date
- Estimated months to fully funded
How Calculations Work
The calculator multiplies monthly essential expenses by a coverage factor derived from income stability and dependent count. Lower stability and more dependents increase the recommended months of coverage (typically 3-9 months). The gap is computed by subtracting current savings from the target. Required monthly savings divides the gap by the number of months until the target date.
Example Use Case
Scenario: Essential expenses are $3,800/month. Income stability is 5/10 (contract work). Two dependents. Current emergency savings: $4,500. Target date: 18 months from now.
Result: Recommended fund: $26,600 (7 months of expenses, elevated due to contract income and dependents). Current coverage: 1.2 months. Gap: $22,100. Required monthly savings: $1,228 to reach target in 18 months.
What You Get — 5 Sheets
Technical Details
Frequently Asked Questions
Why does income stability affect the target?
Irregular or unstable income increases the likelihood of needing the fund. The model adds coverage months as stability decreases to compensate for longer potential income gaps.
Should I include rent/mortgage in essential expenses?
Yes. Include all non-negotiable recurring costs: housing, utilities, insurance, food, transportation, and minimum debt payments.
What if I can't save the required monthly amount?
Extend the target date or reduce non-essential spending. The model recalculates automatically when you change either variable.
Does this account for interest earned on savings?
The base model uses a zero-return assumption for conservatism. You can enable interest in CONFIG if the fund is held in a high-yield savings account.
How often should I recalculate?
Reassess whenever essential expenses change significantly (new lease, insurance change, added dependent) or at least annually.
Download Emergency Fund Calculator
Ready to use immediately. Enter your data in the INPUT sheet, see results in OUTPUT.