How many months should I save?

Standard guidance: 3 months if you have dual income or a stable salary, 6 months for single-income households, 9-12 months for self-employed or commission-based income. Add buffer if you have dependents, a high-deductible health plan (US), or own a home with major repair risk.

What counts as essential expenses?

Anything that doesn't stop in a financial crisis: rent or mortgage, property tax, utilities, groceries, transportation, insurance premiums, minimum debt payments. Do NOT include discretionary spending (subscriptions, entertainment, dining out, vacations) — those should be cut in an emergency.

Where should I keep emergency savings?

High-interest savings account, TFSA, or money-market fund — somewhere accessible within 1-2 business days, FDIC/CDIC-insured, with no withdrawal penalty. Don't invest emergency funds in stocks or long-bond funds (a market crash often coincides with job loss).

Build a smaller starter emergency fund ($1,000-$2,000) FIRST while paying down high-interest debt aggressively. Once high-interest debt is gone, build the full 3-6 months. Robbing your emergency fund to pay debt creates a worse cycle when the next emergency hits.

Emergency Fund Calculator

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Free emergency fund calculator. Enter your essential monthly expenses (rent/mortgage, food, utilities, insurance, minimum debt payments) and select a target months-of-coverage based on your job security profile. The calculator returns the dollar amount to save plus monthly saving rate to hit it within your timeline.

Essential monthly expenses

Rent, food, utilities, insurance, minimum debt payments only.

Months of coverage

Current savings

Months to fully fund

Keep funds in high-interest savings, TFSA, or money-market — accessible within 1-2 business days

Target emergency fund

$24,000

6 months × $4,000

Save / month to hit target

$2,000

Gap: $24,000 ÷ 12 months

Current progress0%

Disclaimer: For informational purposes only. This is not financial, tax, or legal advice — consult a licensed professional before making decisions.

Frequently Asked Questions

References

Why and how to build an emergency fund — Financial Consumer Agency of Canada

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Frequently Asked Questions

References and sources

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