How big should an emergency fund be? (calculator)
This is general information, not financial advice. How we make money.
Key points
- Base it on essential costs, not your full spending or your salary.
- 3 months for stable situations, 6 months as a sensible default, 9 or more for irregular income.
- Keep it in a separate, easy-access savings account at a regulated bank.
- Start with one month, then build up. Any buffer is better than none.
Emergency fund calculator
Your emergency fund target
€10,800
19% there
Why an emergency fund comes first
An emergency fund is money you keep aside for the things you can't plan: a lost job, a broken boiler, a big dentist bill. Without one, every surprise becomes debt, usually on a credit card or an overdraft that charges high interest.
It also changes how you invest. With a buffer in place, you never have to sell investments in a bad month just to pay the rent.
How to work out your number
- Add up your essential monthly costs. Rent or mortgage, bills, groceries, insurance, transport and minimum debt payments. Leave out eating out, holidays and subscriptions you would cancel in a crisis.
- Choose your months of cover from your situation:
| Your situation | Months of cover |
|---|---|
| Stable job, two incomes in the household | 3 months |
| One income, or renting with little flexibility | 6 months |
| Self-employed, freelance or irregular pay | 9 months or more |
- Multiply the two. That's your target.
A worked example
Two and a half years can feel long. That's fine: the fund protects you from the first month it exists. One month of essentials covers most surprise bills; three months covers most short gaps between jobs.
Where to keep it
The best place for an emergency fund is boring:
- A separate savings account, so you don't spend it by accident.
- At a regulated bank, covered by deposit protection. In the EU that's up to €100,000 per person per bank.
- Easy access, so you can reach it within a day or two.
- Paying interest, so inflation eats less of it. Compare rates once a year.
Common mistakes
- Using your salary instead of your costs. You need to replace essentials, not your whole lifestyle.
- Keeping it in your current account. It blends in with spending money and slowly disappears.
- Never refilling it. After you use it, rebuild it before you go back to investing extra.
- Making it too big. More than a year of costs in cash usually means money that could be working harder for long-term goals.
Questions people ask
Should I pay off debt or build an emergency fund first?
Most people do both in order: first a small starter fund of about one month of essentials, then pay off expensive debt, then fill the fund to its full size. Without any buffer, the next surprise bill tends to go back on the credit card.
Where should I keep my emergency fund?
In a separate savings account at a regulated bank, where you can get the money within a day or two. Not in shares or crypto, which can fall exactly when you need the money.
Is my emergency fund protected if the bank fails?
In the EU, deposits are protected up to €100,000 per person per bank by the national deposit guarantee scheme. The UK has a similar scheme called the FSCS; check its current limit on the FSCS website.
What counts as an emergency?
Something unexpected and necessary: losing your job, a medical cost, an urgent repair to your home or the car you need for work. A sale or a holiday is not an emergency; save for those separately.
Sources
- EUR-Lex: Directive 2014/49/EU on deposit guarantee schemes
- Financial Services Compensation Scheme (UK)
Written by Fakhri. Published 4 November 2026, last reviewed 6 November 2026. We update this page when the numbers change. Read our editorial policy.