Emergency Fund Calculator
How big your emergency fund should be, how many months of runway you have right now, and how long until it's fully funded, with the interest a Canadian high-interest savings account earns you along the way.
Fund growth to target
Your balance month by month with HISA interest, against your full target. Milestones at 1, 3 and 6 months of expenses are drawn as steps.
Milestone schedule
When you cross each level of runway at your current savings rate. The highlighted row is your full target.
| Milestone | Amount | Reached in | On (approx.) |
|---|
How this is calculated
Your target
The target is simply essential monthly expenses × target months. The income-stability presets set the months for you: two stable incomes need less cushion (3 months), while a single earner in a volatile industry or someone self-employed with lumpy pay needs far more (9–12 months). You can always override the months slider.
3–6 months vs. Suze Orman's 8–12
The classic personal-finance rule is 3–6 months of expenses. Suze Orman argues that this is too thin for most people and recommends 8–12 months, because job searches routinely run longer than three months and a market downturn often coincides with layoffs. Both views are built into the presets, pick the runway you can sleep on.
Months of runway you have now
This is current savings ÷ monthly expenses. It answers "if my income stopped today, how long could I last on savings alone?", before any EI.
Time to fully funded (with interest)
Your gap doesn't just sit there, it earns HISA interest while you fill it. We solve the future-value-of-an-annuity equation for the number of months n:
n = ln( (target·r + PMT) ÷ (current·r + PMT) ) ÷ ln(1 + r)
where PMT is your monthly contribution and r = (1 + rate)^(1/12) − 1 is the monthly rate from your annual HISA rate. Interest compounds monthly. If your contribution is $0 and you still have a gap, the fund never fills, the tool says so instead of falsely reporting "complete".
Why cash, not investments
An emergency fund must be worth its full value on the exact day disaster strikes. Equities can be down 20–40% precisely when you're laid off, forcing you to sell low. Keep this money in a high-interest savings account (top rates near 2.75% as of July 2026) or a cashable GIC, liquid, principal-protected, still earning.
A laddered home for the cash
Keep about one month of expenses in your chequing account as an instant buffer, and the rest in a HISA or cashable GIC. Holding the fund inside a TFSA makes the interest tax-free, and the contribution room comes back the year after you withdraw. Reserve your RRSP and non-registered investments for long-term goals, not this.
The EI-aware job-loss scenario
Regular EI replaces 55% of insurable earnings, capped at the 2026 maximum insurable earnings of $68,900 (about $695/week, or roughly $3,013/month). When enabled, the "runway with EI" figure combines your fund with EI benefits: your fund only has to cover the shortfall between EI and your expenses, stretching how long the cash lasts. It assumes you qualify, self-employed workers generally don't unless registered for EI special benefits.
What this doesn't model
Taxes on EI, the one-week EI waiting period and processing delays, severance, spousal income continuing during your job loss, or inflation eroding the target over time. It also assumes your contribution and expenses stay level. For the bigger picture see the budget calculator and savings goal calculator.
Common questions
How many months of expenses should an emergency fund cover in Canada?
The standard rule is 3 to 6 months of essential expenses. Aim lower (3 months) if you have two stable incomes, and higher if you are self-employed, on variable income, or a single earner in a volatile industry, 9 to 12 months. Suze Orman famously argues for 8 to 12 months for most people. This calculator sets your target from your income stability and lets you override it.
Should I keep my emergency fund in investments or a savings account?
Keep it in cash-equivalents, not investments. An emergency fund's job is to be there in full on the exact day you need it, during a market drop, a job loss, or a broken furnace. Stocks can be down 20 to 40 percent precisely when you get laid off. A high-interest savings account (HISA) paying around 2.75% or a cashable GIC keeps the money liquid, principal-protected, and still earning something.
What counts as a real emergency?
A true emergency is unexpected, necessary, and urgent: a job loss, a medical or dental crisis, an essential home or car repair, or an emergency trip. It is not a vacation, holiday shopping, a planned purchase, or a predictable annual bill, those belong in a separate sinking fund or your regular budget.
Does EI count as part of my emergency fund?
EI helps but does not replace a fund. Regular EI replaces 55% of insurable earnings up to a 2026 maximum of about $695 per week, and there is usually a one-week waiting period plus processing delay before the first payment. Your fund bridges that gap and tops up the shortfall, which is why the runway estimate here can factor in EI.
Where should I actually keep the money, one account or several?
A laddered approach works well: keep roughly one month of expenses in your chequing account as an instant buffer, and the rest in a high-interest savings account or cashable GIC. Holding it inside a TFSA keeps the interest tax-free and the room is recoverable the following year after a withdrawal.