Emergency Fund Calculator (2024)

FAQs

How to calculate how much to put in an emergency fund? ›

PNC recommends that you consider keeping at least 3-6 months of your essential living expenses in an emergency fund to cover unexpected expenses, or loss or reduction of income.

For many people, $5,000 would be inadequate to cover several months' expenses in the event of job loss or an expensive emergency. If that is the case for you, $5,000 would not be considered an overfunded account.

But how much should you save? Start by taking a look at your bank account to see what you usually spend each month. Then multiply that number by three or six to get an idea of how much you should save for your emergency fund.

Is $20,000 enough for an emergency fund? A savings account with $20,000 is a good starting point for creating a substantial emergency fund. This will help you financially should an unexpected situation arise. However, if you face an extreme situation, $20,000 may only cover limited expenses.

To prepare for income shocks, many experts suggest keeping enough money in your emergency fund to cover 3 to 6 months' worth of living expenses. So if you spend $5,000 per month, your first emergency fund savings milestone should be $2,500 to cover spending shocks.

As a general rule of thumb, many financial experts recommend setting aside 3-6 months' worth of living expenses. So if you generally spend $2,000 per month on rent, utilities, food, gas, healthcare, and other necessities, you should try to save between $6,000 and $12,000.

How many Americans have $100,000 in savings? About 26% of U.S. households had more than $100,000 in savings in retirement accounts as of 2022, according to USAFacts, a nonprofit organization that analyzes data from the Federal Reserve and other government agencies.

Recent MarketWatch Guides survey results indicate that 66.2% of Americans feel like they're living paycheck to paycheck. Respondents struggling to make ends meet span demographics, including genders, generations and incomes.

For the average American household, that's $15,000 to $30,000¹ stashed in an easily accessible account. These funds will help you deal with an unexpected job loss, major medical costs, or other emergencies.

Ideally, expenses such as taxes and home repairs shouldn't come out of your emergency fund. You should set up a budget that has room for costs you can foresee. However, using your emergency fund is a better alternative in these scenarios than taking on debt.

What percent of Americans have 10k in savings? ›

How much emergency fund should I have? Sudden car repairs, medical emergencies or job loss can all lead to unexpected debt if you're not prepared. It's difficult to predict how much these or other emergencies could cost — but three to six months' worth of expenses is a good goal.

How Much You Should Have in Your Emergency Savings. Here's a Dave Ramsey principle we agree with: If you make less than $20,000 per year, aim to have at least $500 in emergency savings. If you make more than $20,000, then aim for at least $1,000.

By age 35, aim to save one to one-and-a-half times your current salary for retirement. By age 50, that goal is three-and-a-half to six times your salary. By age 60, your retirement savings goal may be six to 11-times your salary. Ranges increase with age to account for a wide variety of incomes and situations.

When asked how much money they'd need to save for a financial emergency to avoid additional stress, 40% would feel comfortable having a modest amount — below $2,500 — set aside. 21% say they'd need at least $10,000 saved to feel secure.

The 50-30-20 budget rule states that you should spend up to 50% of your after-tax income on needs and obligations that you must have or must do. The remaining half should dedicate 20% to savings, leaving 30% to be spent on things you want but don't necessarily need.

Emergency Fund Ratio Formula

To calculate the emergency fund ratio, divide the total emergency fund amount by the total monthly expenses.