Emergency Fund Calculator

Calculate how much you need in your emergency fund based on your essential expenses.

Monthly Essential Expenses

Your Emergency Fund Target

$21,000

6 months of expenses

Breakdown

Monthly Expenses$3,500
Minimum (3 months)$10,500
Recommended (6 months)$21,000

Keep it accessible

Store your emergency fund in a high-interest savings account (HISA), not investments. You need quick access without risk of loss.

Track Your Emergency Fund Progress

Waypoint Budget helps you set savings goals and track progress toward your emergency fund target.

Emergency Fund Guidelines

  • 3 months: Minimum if you have stable employment and low expenses
  • 6 months: Recommended for most Canadians
  • 9-12 months: If self-employed, single income, or in an unstable industry
  • Include only essential expenses, not discretionary spending

Frequently Asked Questions

Why do I need an emergency fund?

An emergency fund protects you from unexpected expenses like job loss, medical bills, car repairs, or home repairs. Without one, you'll likely rely on credit cards or loans, which cost more in interest. It's your financial safety net.

Where should I keep my emergency fund?

Keep it in a high-interest savings account (HISA) at a Canadian bank or credit union. It should be easily accessible but separate from your regular checking account. Don't invest it in stocks or lock it in a GIC - you need quick access without risk.

How do I build an emergency fund?

Start small - even $1,000 is better than nothing. Automate monthly transfers from your checking to savings. Cut unnecessary expenses, use windfalls (tax refunds, bonuses), and stay consistent. Use our savings goal calculator to see how long it will take.

Should I save for emergency fund or pay off debt first?

Build a small emergency fund first ($1,000-$2,000), then focus on high-interest debt. Without an emergency fund, unexpected expenses will just add to your debt. Once high-interest debt is paid, build your full 3-6 month emergency fund.

Disclaimer: This calculator is for educational and informational purposes only and does not constitute financial, tax, or legal advice. Results are estimates based on simplified assumptions and may not reflect your actual situation. Tax laws, contribution limits, and regulations change frequently. Always consult a qualified financial advisor or tax professional before making financial decisions. See our Terms of Service for full details.