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

Emergency Fund Calculator

How much should you have in emergency savings? Your essential monthly costs set the size of one month, and how steady your income is decides how many of those months you need behind you. Fill in your own numbers and this works out the target.

How your target is set
Essential monthly costs→Months of cover→Adjusted for your situation
Count essentials only. Rent or mortgage, groceries, utilities, insurance, transportation, minimum debt payments. One income or variable pay pushes the target higher.

Your Monthly Expenses

Include only essential expenses: what you absolutely must pay even if you lost your income tomorrow. The longer walkthrough lives in the emergency fund guide for Canadian Christian men.

A one-tap starting point. Adjust anything below.
$
$
$
$
$
$
$
Total monthly essentials $0

Your Situation

Stable employment: 4 months is the standard recommendation. Employment Insurance replaces 55% of insurable earnings up to $729 a week in 2026, about $3,160 a month before tax, and it takes a few weeks to start. That gap is the reason this setting moves the target, and if your pay is irregular by nature the guide for irregular income fits better than any three-month rule.
Dependents add one month to your recommended target.
$0
$
$300
$
The timeline below assumes the balance earns nothing while you build it. In a high-interest savings account the finish line comes sooner, and the longer the build takes the bigger that difference gets, so treat the date as the outside edge.

Your Emergency Fund Target

$0
Minimum Target (3 months)
Recommended for Your Situation
$0
Gap to Fill
-
Months to Reach Target

Where You Stand

The ring fills as your savings approach your recommended months of essential expenses. It turns green once you are fully funded.

Building Your Fund

MilestoneTargetMonths AwayDate

Where to keep it

High-Interest Savings (HISA)
The default, at an online bank. Dan's sits at EQ Bank, which paid around 2.75% as of August 2026 against a Bank of Canada policy rate of 2.25%. Simplii sits in the same range. Instant access, no risk, and CDIC covers eligible deposits to $100,000 per category per member institution.
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
Keep it in cash. Markets tend to be down in the same months that layoffs happen, and selling at the bottom to cover the mortgage turns a hard season into a permanent loss.

Your next move this week

Open a high-interest savings account and give it a name you will feel bad about raiding. Then set an automatic transfer for the day after payday, $50 or $100 to begin with, so the fund grows without needing a decision every month.

Starting from nothing? Getting to your first $1,000 is the next thing to read. If high-interest debt is the bigger fire, put your numbers into the debt payoff calculator and build a one-month buffer while you go after the balance.

The wisdom behind saving ahead

Saving ahead is an act of wisdom. Proverbs 6:6-8 points to the ant storing up in summer for winter. Having reserves changes how you respond when something breaks. It lets you make a decision under pressure without panicking, and it leaves you free to help someone else who is in the middle of it.

Tools Dan uses

The account Dan uses for cash

A high-interest savings account at an online bank is the default home for this money, and Dan keeps his emergency fund at EQ Bank. Wealthsimple Cash is what he uses for day-to-day cash: liquid, no minimum, no lock-up, and a sensible place to start a buffer if you already bank there.

Open a Wealthsimple account →

Affiliate link, no cost to you. How this works. See the full list of tools Dan recommends.

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. Here is the Canadian reason the range moves: Employment Insurance replaces 55% of insurable earnings up to $729 a week in 2026, about $3,160 a month before tax, and it takes a few weeks to start. On a $110,000 salary, that is roughly a third of the household income, and your fund covers the rest.

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.