How this calculator works
Multiply essential monthly spending by the number of months you want covered. The calculator subtracts current savings to find the remaining gap and rounds the required saving time up to whole months. Choose coverage based on your income stability, dependents and obligations.
Target = essential monthly expenses × months of coverageP = starting amount; C = monthly contribution; G = target; r = monthly rate; n = months; y = years, where applicable.
Example you can check
With $2,000 of monthly expenses and a six-month target, the reserve goal is $12,000. If $4,000 is saved and you add $500 monthly, the gap takes 16 months to fund.
Assumptions & limitations
Expenses stay constant and contributions are made monthly. Savings interest, inflation and withdrawals are excluded. If the gap is positive and the contribution is zero, the time to target is not reachable.
Common questions
How many months should I choose?
There is no universal target. Consider job stability, insurance, household needs and access to other support.
What if I am already above the target?
The gap and saving time are zero. The calculator still shows your current coverage.
Further reading: consumerfinance.gov educational guide. Our formula conventions and examples are described above.