Emergency Fund Runway Calculator
Translate your cash reserves into months of runway, factoring in any income you would still earn during a job loss.
How it works
Net burn = expenses − emergency income · Runway (months) = reserves ÷ net burn · Recommended fund = expenses × target months
An emergency fund is measured not in dollars but in time — how many months you could cover essentials if income stopped. Any income that continues during the emergency (a partner’s pay, unemployment benefits, side work) lowers your monthly burn and stretches the same reserves further. If that income fully covers your essentials, the fund lasts indefinitely. Most planners target three to six months of expenses, more if your income is variable or a single earner supports the household.
Worked example
With $15,000 in reserves, $3,500 of monthly essentials, and $500 of continuing income, the net burn is $3,000 a month, so the runway is 15,000 ÷ 3,000 = 5 months. A 6-month fund would be $21,000, leaving $6,000 still to save.
Frequently asked questions
How many months should my emergency fund cover?
A common guideline is three to six months of essential expenses. Lean toward six or more if your income is irregular, you are the sole earner, or your job is less secure.
Should I count only essential expenses?
Yes — in a real emergency you would cut discretionary spending, so size the fund on housing, food, utilities, insurance, transport and minimum debt payments rather than your full budget.
Where should I keep it?
Somewhere safe and instantly accessible, like a high-yield savings account or money market fund. The goal is liquidity and stability, not investment return, so avoid stocks for this money.
Related calculators
Educational estimate, not financial advice. Investment returns are not guaranteed.