Emergency Fund Calculator: How Much Should You Save?
An emergency fund can protect you from surprise financial setbacks. Use our emergency fund calculator to pinpoint your savings goal.🤔 How much do I really need in an emergency fund?
There are three possible approaches to determining your goal amount for an emergency fund.
Save the equivalent of 3 to 6 months of your regular expenses. This is the approach used by the calculator above.
Save the equivalent of 3 to 6 months of income.
Save $500 — something is better than nothing
All three of these approaches are valid.
Many Canadians have zero emergency fund, so by saving $500, you would be looking out for your future self in a way that not everyone does.
I can pay my bills; is an emergency fund even necessary?
Yes! Regardless of amount, an emergency fund gives you a cushion in case you find yourself facing unexpected expense or loss of income.
An unexpected expense is something that happens suddenly and is so urgent that you don't have time to save up for it.
This could look like:
🚘 The transmission fails on the vehicle that you use to commute to work.
😸 Your pet is injured or gets sick, and requires an expensive procedure at the vet.
🤕 You develop a health problem that prevents you from working for a while.
An emergency fund makes it more likely that you can get through these unexpected life events without running up your credit card, taking out a loan, or feeling undue amounts of financial stress.
» Ready to start saving for the unexpected? Check out our "What is an emergency fund?" story to learn how to choose the right type of savings account for your emergency fund, and ways to make it grow faster.
Got some money coming in? Here's where to stash it.
Browse our picks for the best savings accounts in Canada.
Sources
NerdWallet writers are subject matter authorities who use primary, trustworthy sources to inform their work, including peer-reviewed studies, government websites, academic research and interviews with industry experts. All content is fact-checked for accuracy, timeliness and relevance. You can learn more about NerdWallet's high standards for journalism by reading our editorial guidelines.
- Canadian Social Survey on Quality of Life and Cost of Living. One in four Canadians are unable to cover an unexpected expense of $500. Accessed Sep 29, 2025.
- Financial Consumer Agency of Canada. Setting up an emergency fund. Accessed Jul 14, 2025.
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