Emergency Fund Calculator: How Much Should You Save?

Use this government-approved formula to calculate your ideal emergency fund based on your income and expenses. CFPB recommendations included.

The Consumer Financial Protection Bureau (CFPB) recommends building an emergency fund that covers 3-6 months of essential expenses. Here's how to calculate yours: **Step 1: Calculate Monthly Essential Expenses** - Housing (rent/mortgage, utilities) - Food and groceries - Transportation - Insurance premiums - Minimum debt payments - Essential personal care items **Step 2: Apply the CFPB Formula** For stable income: Essential expenses × 3 months For irregular income: Essential expenses × 6 months For high-risk jobs: Essential expenses × 8-12 months **Where to Keep Your Emergency Fund** The CFPB recommends: - High-yield savings accounts - Money market accounts - Short-term CDs **Building Your Fund Gradually** Start with these CFPB-recommended steps: 1. Aim for $500 first 2. Build to one month of expenses 3. Gradually reach your full target The Federal Reserve reports that 40% of Americans couldn't cover a $400 emergency expense. Don't be part of this statistic.\n\n**Related Resources**\n- [Financial Planning Tools](/tools)\n- [Budget Calculator](/budget-planner)\n- [Credit Guide](/category/Debt%20%26%20Credit)\n- [Money Saving Tips](/category/Save%20Money)