Emergency Fund Planner - Build a Safety Net Fast
Emergency Fund Planner
An emergency fund is money you keep available for unexpected situations such as job loss, medical expenses, or urgent repairs. This planner helps you set a clear target, compare what you can save each month versus a recommended plan, and forecast when you will reach your goal.
How the target and gap work
You can set your own target amount. If you do not override it, a common default target is:
\( \text{Target} = \text{Monthly Essential Expenses} \times \text{Coverage Months} \)
The remaining gap is:
\( \text{Gap} = \max(0, \text{Target} - \text{Current Savings}) \)
Recommended monthly saving
If return is disabled (common for emergency funds), a simple recommended monthly saving plan is:
\[ \text{Recommended Monthly Saving} = \frac{\text{Gap}}{\text{Timeframe Months}} \]
This is an easy-to-understand baseline that aims to reach the target within the timeframe you choose.
Optional return
If you enable return, the planner converts your return percentage to a monthly growth rate \(r\). For an annual return \(R\):
\( r = (1 + R)^{1/12} - 1 \)
For a monthly return \(R\):
\( r = R \)
The month-by-month projection uses:
\[ \text{Ending Balance}_m = \text{Starting Balance}_m + (\text{Starting Balance}_m \times r) + \text{Your Monthly Saving} \]
Forecast and dates
You select a start date for the first deposit. The planner then assigns each deposit to a monthly date and estimates a target date when the balance first meets or exceeds the target. It also shows a completion percentage at the end of your chosen timeframe.
Practical note
Most emergency funds are kept in liquid, low-risk places. That is why return is optional and disabled by default. If you are not sure about your return rate, leave it off.