Last updated: 2026 assumptions reviewed. Assumptions & sources
Tools & Resources

Emergency Fund Calculator

How much should you have in emergency savings? It depends on your expenses, your job stability, and your dependents. This calculates the right target for your situation.

Your Monthly Expenses

Include only essential expenses: what you absolutely must pay even if you lost your income tomorrow.

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Total monthly essentials $0

Your Situation

Stable employment: 4-month target is typical.
Dependents add 1–2 months to your recommended target.
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Your Emergency Fund Target

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Minimum Target (3 months)
Recommended for Your Situation
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Gap to Fill
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Months to Reach Target

Building Your Fund

MilestoneTargetMonths AwayDate

Where to keep it

High-Interest Savings (HISA)
Best default. Currently 4–5% at EQ Bank, Oaken Financial, Simplii. Instant access, no risk, earns real interest.
TFSA HISA
Keep your emergency fund inside a TFSA if you have room. The interest earned is tax-free. Same liquidity, better after-tax return.
Not in investments
Don't keep your emergency fund in stocks or ETFs. You could be forced to sell at a loss exactly when markets are down, which is also when your income is most likely to be disrupted.

Why this matters spiritually

An emergency fund isn't about distrust. It's about wisdom. Proverbs 6:6-8 points to the ant storing up in summer for winter. Having reserves changes how you respond to adversity. It lets you make better decisions under pressure, be more generous, and carry less anxiety.

Frequently Asked Questions

How much should I have in an emergency fund?

The common target is three to six months of essential expenses. Three months covers most job loss scenarios for someone with strong employment. Six months is better if you are self-employed, have a single income household, or work in a volatile industry.

Where should I keep my emergency fund in Canada?

A High Interest Savings Account (HISA) or a TFSA HISA. It needs to be liquid (accessible within a few days), separate from your chequing account so you are not tempted to spend it, and earning at least some interest while it sits there. Do not invest it in the market.

Is $1,000 enough for a starter emergency fund?

As a starting point, yes. Dave Ramsey made $1,000 famous as step one, and it works psychologically to get you started. But $1,000 will not cover a major car repair, a furnace replacement, or two weeks of lost income. Grow it to three months of expenses as quickly as you reasonably can.

Should I pay off debt or build an emergency fund first?

Both. Build a small starter emergency fund first (roughly one month of expenses), then focus on high-interest debt, then grow the emergency fund to three to six months. Without any buffer, an unexpected expense sends you right back to the credit card.

Does a TFSA count as an emergency fund?

A TFSA HISA works well for an emergency fund. The advantage is that withdrawals are tax-free and the room comes back the following year. The risk is if you invest the TFSA in volatile assets, the balance may be down exactly when you need it. Keep the emergency fund portion in cash or a savings account inside the TFSA.