Emergency Fund Calculator
Work out how big your emergency fund should be, how much more you need to save and how long it will take.
Your costs and savings
Worked example
These are the calculator's starting values, so the results above match this example until you change an input.
If your essential costs are R 15 000 a month, six months of cover is R 90 000. With R 20 000 already saved, you need another R 70 000.
Saving R 3 000 a month gets you there in 24 months (2 years), or a little sooner if the money earns interest in a savings account.
How big should an emergency fund be?
A common guideline is three to six months of essential costs: the things you would still have to pay if your income stopped, such as rent or bond, food, transport, insurance premiums, school fees and minimum debt repayments. Leave out spending you could cut quickly, like eating out or subscriptions.
| Situation | Suggested cover |
|---|---|
| Two steady incomes, secure jobs | 3 months |
| One income, or a family to support | 6 months |
| Self-employed, commission or contract work | 6 to 12 months |
| Close to retirement or with health concerns | 6 months or more |
Where to keep it
Emergency money needs to be safe and quick to reach, so a savings account, money market account or a short notice deposit (such as 7 or 32 days) usually works best. A tax-free savings account can hold it too, but money you withdraw from a TFSA cannot be put back without using up your contribution limits. Avoid investing your emergency fund in shares, which can fall just when you need the money.
How this calculator works
The target is your monthly essential costs multiplied by the months of cover. The time to get there adds your monthly saving at the end of each month and, if you enter a rate, monthly interest on the balance. UIF benefits can soften a job loss but usually replace well under half of a salary, so most people still need their own fund.
Based on common financial planning guidelines for emergency savings. Interest is compounded monthly at the rate you enter. This page is general educational information, not financial advice.
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Frequently asked questions
How many months should my emergency fund cover?
Three to six months of essential costs suits most people. Choose six or more if you rely on one income, work for yourself or have dependants.
Should I pay off debt or build an emergency fund first?
Many planners suggest a small starter fund of one month’s costs first, then paying off expensive debt such as credit cards, then building the full fund.
Can my emergency fund be in a tax-free savings account?
Yes, but withdrawals do not free up contribution room, so frequent dipping uses up your lifetime limit. A normal savings account is simpler for money you may need often.