How to use it
- Type your Monthly essential costs: what you must pay each month.
- Choose the Months of cover you want, for example 6, and enter the Savings you have now.
- Enter the Saved each month amount, or 0 to see only the gap.
- Read the Emergency fund target and Still to save, then open the table Targets from 3 to 6 months to compare the range.
How the target is calculated
The target is your monthly essential costs multiplied by the months of cover you choose. The amount still to save is the target minus the savings you have, and it is never below zero. The months to reach the target are the amount still to save divided by what you save each month, rounded up to a whole month.
target = monthly essential costs × months of cover
still to save = target − savings (zero if the savings already reach the target)
months to reach = still to save ÷ monthly saving, rounded up
months of cover now = savings ÷ monthly essential costs- Essential costs are what you must pay, not everything you spend.
- The months of cover are your choice within the range; the table shows 3 to 6 months.
Why 3 to 6 months
The Financial Consumer Agency of Canada advises saving the equivalent of 3 to 6 months of your regular expenses. The table above shows the target and the amount still to save for each month of that range. The right figure for you depends on how steady your income is and on the costs you could not avoid.
What this calculator does not include
- Interest earned on your savings, which would bring the target closer sooner.
- Tax on interest and fees charged by your bank.
- Irregular costs you plan to meet from a separate fund, such as a yearly bill.
Worked example: 2,500 a month, 6 months of cover, 4,000 saved
Essential costs of 2,500 a month and 6 months of cover give a target of 15,000. With 4,000 saved, 11,000 is still to save. Saving 300 a month takes 36.67 months, so it takes 37 months to reach the target. Today the savings cover 1.6 months of essential costs.
| Months of cover | Target | Still to save |
|---|---|---|
| 3 | 7,500.00 | 3,500.00 |
| 4 | 10,000.00 | 6,000.00 |
| 5 | 12,500.00 | 8,500.00 |
| 6 | 15,000.00 | 11,000.00 |
Frequently asked questions
How many months of expenses should an emergency fund cover?
The Financial Consumer Agency of Canada advises saving the equivalent of 3 to 6 months of your regular expenses. The right number for you depends on how steady your income is and on the costs you could not avoid.
Which costs count as essential?
The costs you must pay to keep your home and your work going: rent or a mortgage, utilities, basic food, transport to work, insurance and the minimum payments on your debts. Entertainment and extras do not count.
Does the calculator check which account my savings are in?
No. It uses the savings amount you enter, whatever account holds it. Enter only money you could reach quickly when an emergency happens.
Why does the calculator round the months up?
The saving is counted in whole months, so a part of a month still means one more month to finish. For example, 36.67 months becomes 37 months.
Is this financial advice?
No. The calculator does the arithmetic of a planning target. For a plan that fits your own job, family and debts, speak to a qualified financial adviser.
Does the calculator keep what I type?
No. The figures are worked out in your browser. Nothing you enter is sent to us or stored.
Sources
Figures and text last checked on Thursday, November 12, 2026.