function calculateEmergencyFund() {
var housing = parseFloat(document.getElementById('housing').value) || 0;
var food = parseFloat(document.getElementById('food').value) || 0;
var utilities = parseFloat(document.getElementById('utilities').value) || 0;
var transport = parseFloat(document.getElementById('transport').value) || 0;
var insurance = parseFloat(document.getElementById('insurance').value) || 0;
var misc = parseFloat(document.getElementById('misc').value) || 0;
var months = parseInt(document.getElementById('months').value);
var monthlyTotal = housing + food + utilities + transport + insurance + misc;
var totalGoal = monthlyTotal * months;
if (monthlyTotal <= 0) {
alert("Please enter your monthly expenses to calculate your goal.");
return;
}
var resultArea = document.getElementById('ef-result-area');
var monthlyText = document.getElementById('monthly-breakdown');
var goalText = document.getElementById('total-goal');
var recText = document.getElementById('recommendation-text');
resultArea.style.display = 'block';
monthlyText.innerHTML = "Based on monthly expenses of $" + monthlyTotal.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}) + "";
goalText.innerHTML = "$" + totalGoal.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
var advice = "";
if (months <= 3) {
advice = "A 3-month fund is ideal for individuals with stable jobs and low debt.";
} else if (months <= 6) {
advice = "A 6-month fund provides a robust safety net for most households.";
} else {
advice = "A " + months + "-month fund is excellent for freelancers or those in volatile industries.";
}
recText.innerHTML = advice;
}
How to Use the Emergency Fund Calculator
Building a financial safety net is the first step toward long-term wealth and peace of mind. Our Emergency Fund Calculator helps you determine exactly how much cash you should keep in a liquid savings account to cover unexpected life events like job loss, medical emergencies, or major car repairs.
Step-by-Step Guide to Calculating Your Needs
List Core Expenses: Only include "must-have" expenses. This includes your rent or mortgage, basic groceries, utilities, and essential insurance.
Factor in Debt: Include minimum payments for credit cards, student loans, or car notes, as these obligations don't disappear in an emergency.
Choose Your Duration: Financial experts generally recommend 3 to 6 months of expenses. If you are self-employed or work in a niche industry, lean toward 9 to 12 months.
Example Calculation
Let's look at a realistic scenario for a typical household:
Housing: $1,800
Groceries: $500
Utilities/Transport: $400
Monthly Total: $2,700
6-Month Goal: $16,200
Frequently Asked Questions
Where should I keep my emergency fund?
It should be in a High-Yield Savings Account (HYSA). This keeps the money liquid (accessible) while earning significantly more interest than a standard checking account.
Should I pay off debt before building an emergency fund?
Most experts suggest building a "starter" emergency fund of $1,000 to $2,000 first, then tackling high-interest debt, and finally finishing the full 3-6 month fund.
What counts as an emergency?
Emergencies are unplanned, necessary, and urgent. A vacation sale is not an emergency; a leaking roof or a job layoff is.