๐ Emergency Fund Calculator
"3 to 6 months of expenses" is a commonly cited guideline โ adjust to fit your situation.
Enter your monthly expenses and how many months of coverage you want, to calculate a target emergency fund amount. "3 to 6 months of expenses" is a commonly cited guideline, but you can set any number of months that fits your situation.
How to use
- Enter your monthly expenses.
- Enter how many months you want to cover, or pick a preset.
- The target emergency fund amount is calculated automatically.
How the calculation works
An emergency fund is savings that keep you going if your income stops because of illness, injury or job loss, or if a large unexpected bill arrives. This tool multiplies your monthly living costs by the number of months you want to cover. Target = monthly living costs ร months A common guideline is 3 to 6 months of expenses for employees and 6 to 12 months for the self-employed or anyone with irregular income. In Japan, unemployment benefits after a voluntary resignation start only after a 7-day waiting period plus a restriction period of, in principle, one month (since April 2025; three months if you have resigned voluntarily three or more times in the past five years), so an emergency fund also covers that gap.
Worked example
Monthly living costs of ยฅ200,000 3 months: ยฅ600,000 6 months: ยฅ1,200,000 12 months: ยฅ2,400,000 Saving ยฅ30,000 a month, reaching 6 months (ยฅ1.2 million) takes 1,200,000 รท 30,000 = 40 months (about 3 years 4 months).
Things to be aware of
- Include costs you would still have to pay without income: rent, food, utilities, phone and insurance. Travel and hobbies can be left out.
- Keep the fund somewhere you can withdraw from immediately, such as an ordinary savings account. Investments whose value fluctuates are not suitable.
- How many months you need depends on your situation, such as whether you are single or have dependants and whether you own or rent.
FAQ
How many months should I aim for?
3 to 6 months is commonly cited as a guideline, but the right number varies based on income stability (e.g. salaried vs. self-employed) and household situation. This tool lets you try any number of months.
What formula is used?
Target amount = monthly expenses ร number of months โ simple multiplication.
What should I include in monthly expenses?
It's generally recommended to use essential ongoing costs that continue even without income โ rent, food, utilities, phone/internet, insurance, and similar.