What an emergency-fund target represents
An emergency fund is a pool of money set aside for unplanned financial disruptions. This calculator does not decide the right amount for you. It simply multiplies the essential monthly expenses you enter by the reserve period you choose.
Use essential expenses, not necessarily total spending
If income stopped temporarily, some discretionary spending could potentially pause. For a reserve estimate, people often focus on expenses that would still need to be paid: housing, food, basic utilities, transportation, insurance and required debt payments.
Choose the number of months as a scenario
The three-, six-, nine- and twelve-month options are scenarios, not recommendations. The amount someone chooses to hold can depend on job stability, household income sources, dependents, insurance, access to other liquid savings and personal comfort.
The time-to-target estimate is simple
If you enter a monthly savings amount, Plumb divides the remaining gap by that amount. It does not include interest earned, withdrawals, changes in expenses or changes to your monthly savings rate.