Your emergency fund
Runs in this tab · nothing is sent or stored
Example figures: replace them with yours. “Other essentials” covers childcare, medication and anything else that continues if your income stops.
Your target
–Reached by
–Milestones
| Cover | Amount | Reached |
|---|
To finish sooner
| Done in | Save per month |
|---|
How the emergency fund calculator works
The calculator multiplies one month of essential costs by the months of cover you choose, subtracts what you already hold, and divides the gap by your monthly deposit. It works on essential costs only, because in a real emergency the eating out, travel and paused subscriptions stop; the rent, groceries and minimum payments keep going.
The date assumes the same deposit every month and ignores interest earned, so a savings account that pays interest gets you there a little sooner. The Financial Consumer Agency of Canada also allows a simpler version: 3 to 6 months of income. That gives a bigger number, since income includes the share you would stop spending.
What counts as an essential cost
- 01Housing. Rent or mortgage payment, property tax, condo fees.
- 02Utilities and phone. Heat, electricity, water, internet and one phone plan.
- 03Groceries. Food at home, cleaning and basic household supplies.
- 04Insurance. Home or tenant, car, life and health premiums.
- 05Transport. Transit pass or fuel, car payment and parking you need to get to work or find work.
- 06Minimum debt payments. Only the minimums; extra payments stop in an emergency.
- 07Other costs that continue. Childcare, medication, support payments.
Leave out dining out, streaming, travel and other spending you would pause. Occasional costs you can see coming, such as winter tires or holiday gifts, belong in a sinking fund; the Financial Consumer Agency of Canada treats them as separate from emergencies.
How many months of cover you need
Pick the number of months by how long it would take to replace your income. The guidance below follows our article on how much emergency fund you need.
| Your situation | Months | Example target |
|---|---|---|
| Two incomes, either covers essentials; stable job in a field that is hiring | 3 | $7,950 |
| One income, or dependants; specialised role that takes longer to re-hire into | 6 | $15,900 |
| One income with no backup, or a sector prone to layoffs | 9 | $23,850 |
| Self-employed, freelance or commission pay | 9–12 | $31,800 |
Example target: $2,650 of essentials a month, the figures prefilled in the calculator.
Example: from $2,000 to six months of cover
A household with $2,650 of monthly essentials, $2,000 already saved and $300 a month to add reaches 3 months of cover ($7,950) in 20 months and 6 months ($15,900) in 47 months. Raising the deposit to $580 a month gets to 6 months in two years. If that is too slow, build in stages: one month of essentials first, then 3 months, then the full target, as described in how to build an emergency fund.
Where to keep it
The Financial Consumer Agency of Canada recommends a savings account separate from your everyday account, with low or no transaction fees, penalty-free withdrawals and interest, so the money is quick to reach. Set the deposit as an automatic transfer on payday, and start with whatever amount you can; the agency’s own advice is to begin now, even with small sums.
Turn the target into a goal that tracks itself
In Finman, name the goal, set the amount and the date. The goal card tracks what is saved, and My plan on the AI page works out how much to put aside each month. Free during the open beta, no card.
Create my emergency fund goalWhere Finman fits
Finman keeps savings goals next to your budgets and accounts. A goal holds the amount and the target date; the goal card shows what is left, and My plan on the AI page works out the monthly amount needed. Budgets flag a category once 80% of it is spent or when the pace will break it before the month ends, which protects the deposit. See savings goals in Finman and the guide to automatic savings goals. If you have high-interest debt as well, compare what the same money does in the debt payoff calculator.
Frequently asked questions
How much should I have in an emergency fund?
The Financial Consumer Agency of Canada suggests 3 to 6 months of your regular expenses. Size it on essential costs: housing, utilities, groceries, insurance, transport and minimum debt payments. People with one income, dependants or irregular pay often aim for 6 to 12 months.
How do I calculate my emergency fund?
Add up one month of essential costs and multiply by the months of cover you want. With $2,650 of essentials, 3 months is $7,950 and 6 months is $15,900. Subtract what you have saved, then divide the gap by your monthly deposit to get the number of months to reach it.
Is 3 months or 6 months of expenses better?
Three months suits two stable incomes or a job that is quick to replace. Six months or more suits a single income, dependants, a specialised role, or freelance and commission pay. The more time it would take to replace your income, the more months you need.
Should I build an emergency fund or pay off debt first?
Many plans start with a small buffer, such as one month of essentials, so a surprise bill does not land on a credit card. Then extra money goes to high-interest debt, and the full fund is finished after that. The debt payoff calculator shows what each extra dollar does to your debt.
Where should I keep my emergency fund?
The Financial Consumer Agency of Canada recommends a savings account separate from your everyday account, with low or no fees, penalty-free withdrawals and interest, so the money is easy to reach in an emergency.
Do occasional expenses like winter tires count as emergencies?
The Financial Consumer Agency of Canada separates them: school supplies, winter tires and holiday costs are occasional expenses you can plan for. Save for those in their own sinking funds and keep the emergency fund for unplanned events such as job loss, illness or an urgent repair.
Know your number? Start the goal today
Set the target in Finman and watch the forecast date move as you save. Free during the open beta.
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