Money Emergency fund calculator: how big should your safety cushion be?
An emergency fund keeps a broken washing machine or a job change from turning into new debt. Here you see how big it should be and when you will reach it.
Fixed costs include rent, utilities, insurance, food, transport and loan payments. Rule of thumb, not a must: with an uncertain income, plan for more months.
Why the emergency fund comes first
Without a reserve, every unexpected bill turns into an overdraft or an instalment plan, and those cost interest. An emergency fund is therefore not an investment but insurance against new debt. It belongs in an account you can access quickly, such as an instant-access savings account.
How big should it be?
Three to six months of your fixed costs is often recommended. With a secure job and no children, three months is often enough. Self-employed people, single earners or people with fluctuating income tend to plan for six months or more.
Start small
Even €500 covers many small emergencies. Ideally set up a standing order right after payday. The Money Compass shows you how many months your reserve already covers.
Frequently asked questions
Where should I keep my emergency fund?
In a safe account you can access at any time, for example an instant-access savings account with deposit protection. Not in shares, because they may have fallen exactly when you need the money.
Should I repay debt or save first?
Usually build a small starter emergency fund first, then repay expensive debt, and then fill up the reserve completely.
Do loan payments count as fixed costs?
Yes. Everything you definitely have to pay every month counts.