Closer to three if you have a stable job, a second income in the household and few people depending on you. Six or more if you work for yourself, your income is irregular or one income supports the household.

Why is it based on expenses rather than income?

Because in an emergency what you need to cover is your essential spending, not your usual lifestyle. That's why only essential expenses count.

Where should I keep it?

Somewhere safe, available at short notice and separate from your everyday account. A separate savings account is usually the simplest option.

Emergency fund calculator

How much to set aside, and how long it will take to get there.

The calculator needs JavaScript, which is turned off in your browser. The explanation below shows how to work it out by hand.

How it works

An emergency fund is money set aside for what you can't predict: a breakdown, a medical bill or a month without income. Its job is to stop an unexpected cost from forcing you to take out a loan, lean on a credit card or sell an investment at a bad moment.

How to work it out by hand: add up what you would pay in a month if you cut everything that isn't essential, and multiply it by the months of cover you want. A common guideline is three to six months of essential expenses: closer to three with a stable job and a second income in the household, six or more if you work for yourself or your income is irregular.

How long it will take: subtract what you already have and divide what's left by what you can save each month. With essential expenses of 1,800 a month and three months of cover, the target is 5,400; saving 300 a month, you would get there in 18 months.

Keep it somewhere safe, available at short notice and separate from your everyday money, such as a separate savings account.

Read the full guide: Emergency fund: how much you need and how to build one

Frequently asked questions

Three months or six?: Closer to three if you have a stable job, a second income in the household and few people depending on you. Six or more if you work for yourself, your income is irregular or one income supports the household.
Why is it based on expenses rather than income?: Because in an emergency what you need to cover is your essential spending, not your usual lifestyle. That's why only essential expenses count.
Where should I keep it?: Somewhere safe, available at short notice and separate from your everyday account. A separate savings account is usually the simplest option.