Amount currently saved

Total you currently have saved that should be included in this analysis.

Monthly contribution

The amount you will contribute each month to your emergency savings.

Monthly living expenses

Your total monthly living expenses. This amount should be your total expenses, not your total monthly income. Remember to include your mortgage or rent payments, food, clothing, gas, phone and other monthly expenses. This amount does not need to include monthly savings or contributions to retirement accounts.

Months of unemployment

The number of months you expect it will take to find a new employer if you become unemployed. The time it takes to find a new job can range anywhere from one month to more than a year. It is important to be realistic in your unemployment estimate. Covering living expenses if you become unexpectedly unemployed can be your largest emergency expense.

Insurance deductible medical

The amount you are required to pay for medical expenses before your insurance coverage begins. Some medical insurance only covers a portion of your expenses after your deductible has been paid. If your insurance does not cover 100% of your expenses after you have paid your deductible, you may wish to enter your total maximum out of pocket costs here, which may be considerably higher than your deductible alone.

Insurance deductible auto

The amount you are responsible to pay on auto insurance claims before your insurance covers any expenses. Deductibles for auto insurance commonly range from $500 to $2500.

Insurance deductible property

The amount you are responsible to pay on property claims, such as storm damage to your home, before your insurance covers any expenses. Deductibles for home or property insurance commonly range from $500 to $2500.

Insurance deductible other

Any other insurance deductibles that may be required in your emergency fund.

Emergency medical

Total amount you may need in a medical emergency. Don't include amounts that will be covered by insurance. Also, insurance deductibles should not be included in this amount.

Emergency auto repair

Emergency auto repair costs. Don't include amounts that will be covered by insurance. Also, insurance deductibles should not be included in this amount.

Emergency legal

Emergency legal costs such as legal defenses for civil suits or criminal accusations. Don't include amounts that will be covered by insurance. Also, insurance deductibles should not be included in this amount.

Emergency property damage

Total amount you may need in an emergency involving damage to property such as your home. Don't include amounts that will be covered by insurance. Also, insurance deductibles should not be included in this amount.

Emergency other

Any other amounts that may be required in an emergency not included in medical, legal, auto or property categories.

Rate of return

This is the annually compounded rate of return you expect from your savings before taxes. The actual rate of return is largely dependent on the types of investments you select. The Standard & Poor's 500® (S&P 500®) for the 10 years ending December 31^st 2022, had an annual compounded rate of return of 12.6%, including reinvestment of dividends. From January 1, 1970 to December 31^st 2022, the average annual compounded rate of return for the S&P 500®, including reinvestment of dividends, was approximately 10.7% (source: www.spglobal.com). Since 1970, the highest 12-month return was 61% (June 1982 through June 1983). The lowest 12-month return was -43% (March 2008 to March 2009). Savings accounts at a financial institution may pay as little as 0.25% or less but carry significantly lower risk of loss of principal balances.

It is important to remember that these scenarios are hypothetical and that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are generally subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment. It is not possible to invest directly in an index and the compounded rate of return noted above does not reflect sales charges and other fees that investment funds and/or investment companies may charge.

Since emergency savings may need to be accessed at any time, most people should use a conservative interest rate similar to a saving account and not rely on more risky investments such as stock or bonds.

State tax rate

Your marginal state tax rate. The assumptions for state taxes are the same as those for federal. This calculator assumes that you pay state taxes on any interest earned. This calculator also assumes that your taxes are taken out of your savings as they are earned, instead of at the end of the year.

Federal tax rate

Your marginal federal tax rate. This calculator assumes that you pay federal taxes at this rate on any interest earned. This calculator also assumes that your taxes are taken out of your savings as they are earned, instead of at the end of the year. Use the ‘Filing Status and Federal Income Tax Rates on Taxable Income’ table to assist you in estimating your federal tax rate.