{
  "$comment": "Machine-readable companion to https://valem.run/calculators/tools/emergency-fund. Formula, inputs, outputs, engine-verified test vectors, cited sources and the re-runnable Valem ModelSpec behind the page.",
  "url": "https://valem.run/calculators/tools/emergency-fund",
  "dataUrl": "https://valem.run/calculators/tools/emergency-fund.json",
  "license": {
    "name": "CC BY 4.0",
    "url": "https://creativecommons.org/licenses/by/4.0/",
    "attribution": "Decision tools emergency fund sizing model by Valem (https://valem.run/calculators/tools/emergency-fund), CC BY 4.0.",
    "note": "Covers the model — the expression of each rule and the arrangement of the catalog. The rates and thresholds themselves are law and are not licensed by anyone; the cited sources are where they come from."
  },
  "verificationUrl": "https://valem.run/calculators/tools/emergency-fund/verify",
  "country": "tools",
  "countryName": "Decision tools",
  "formula": "emergency-fund",
  "formulaName": "Emergency fund sizing",
  "title": "Emergency Fund Calculator — how many months, and why",
  "answer": "Your emergency fund target is your monthly essential expenses times a number of months that starts at 3 and rises for variable or freelance income and for each dependent, falling by one month if you carry income-protection insurance.",
  "lang": "en",
  "currency": "USD",
  "taxYear": "",
  "verification": {
    "claim": "internal-consistency",
    "statement": "The Valem engine reproduces this model's stated formula through 4 self-test cases (below, and re-runnable against the spec). That asserts internal consistency, NOT that the formula matches current law — the cited sources are the evidence for that, and carry the date each was last checked.",
    "selfTestCases": 4,
    "ratesAreIllustrative": false,
    "sourcesCheckedOn": "2026-08-02"
  },
  "sources": [],
  "terminalOutput": "percentFunded",
  "inputs": [
    {
      "name": "monthlyEssentialExpenses",
      "type": "number",
      "label": "Monthly essential expenses",
      "minimum": 0
    },
    {
      "name": "currentSavings",
      "type": "number",
      "label": "Current emergency savings",
      "minimum": 0
    },
    {
      "name": "monthlySavingsCapacity",
      "type": "number",
      "label": "Can save toward it each month",
      "minimum": 0
    },
    {
      "name": "incomeStability",
      "type": "string",
      "label": "Income stability",
      "enum": [
        "stable",
        "variable",
        "freelance"
      ]
    },
    {
      "name": "dependents",
      "type": "integer",
      "label": "Dependents",
      "minimum": 0,
      "maximum": 10
    },
    {
      "name": "hasIncomeProtectionInsurance",
      "type": "boolean",
      "label": "I have income-protection or critical-illness insurance"
    }
  ],
  "outputs": [
    {
      "name": "recommendedMonths",
      "type": "number",
      "label": "Recommended months",
      "format": "number",
      "formula": "$max([3 + (incomeStability = \"variable\" ? 2 : incomeStability = \"freelance\" ? 3 : 0) + $min([dependents, 3]) - (hasIncomeProtectionInsurance ? 1 : 0), 3])"
    },
    {
      "name": "targetFundSize",
      "type": "number",
      "label": "Target fund size",
      "format": "number",
      "formula": "$round(monthlyEssentialExpenses * recommendedMonths, 2)"
    },
    {
      "name": "currentCoverageMonths",
      "type": "number",
      "formula": "$round(monthlyEssentialExpenses > 0 ? currentSavings / monthlyEssentialExpenses : 0, 2)"
    },
    {
      "name": "shortfall",
      "type": "number",
      "label": "Amount still needed",
      "format": "number",
      "formula": "$round($max([0, targetFundSize - currentSavings]), 2)"
    },
    {
      "name": "monthsToTarget",
      "type": "number",
      "formula": "$round(shortfall <= 0 ? 0 : (monthlySavingsCapacity > 0 ? shortfall / monthlySavingsCapacity : -1), 1)"
    },
    {
      "name": "percentFunded",
      "type": "number",
      "label": "Percent funded",
      "format": "number",
      "formula": "$round(targetFundSize > 0 ? $min([100, currentSavings / targetFundSize * 100]) : 0, 1)"
    }
  ],
  "testCases": [
    {
      "description": "freelancer with a dependent, partially funded — the baseline scenario",
      "given": {
        "monthlyEssentialExpenses": 2500,
        "currentSavings": 3000,
        "monthlySavingsCapacity": 500,
        "incomeStability": "freelance",
        "dependents": 1,
        "hasIncomeProtectionInsurance": false
      },
      "expect": {
        "recommendedMonths": 7,
        "targetFundSize": 17500,
        "currentCoverageMonths": 1.2,
        "shortfall": 14500,
        "monthsToTarget": 29,
        "percentFunded": 17.1
      }
    },
    {
      "description": "stable income, insured, no dependents, already over target — floor and cap both bind",
      "given": {
        "monthlyEssentialExpenses": 2000,
        "currentSavings": 8000,
        "monthlySavingsCapacity": 200,
        "incomeStability": "stable",
        "dependents": 0,
        "hasIncomeProtectionInsurance": true
      },
      "expect": {
        "recommendedMonths": 3,
        "targetFundSize": 6000,
        "currentCoverageMonths": 4,
        "shortfall": 0,
        "monthsToTarget": 0,
        "percentFunded": 100
      }
    },
    {
      "description": "freelancer with several dependents starting from zero savings — the worst-case shape",
      "given": {
        "monthlyEssentialExpenses": 3000,
        "currentSavings": 0,
        "monthlySavingsCapacity": 300,
        "incomeStability": "freelance",
        "dependents": 5,
        "hasIncomeProtectionInsurance": false
      },
      "expect": {
        "recommendedMonths": 9,
        "targetFundSize": 27000,
        "currentCoverageMonths": 0,
        "shortfall": 27000,
        "monthsToTarget": 90,
        "percentFunded": 0
      }
    },
    {
      "description": "zero saving capacity with a real shortfall — the gap cannot close, monthsToTarget is the -1 sentinel rather than a false 0",
      "given": {
        "monthlyEssentialExpenses": 2000,
        "currentSavings": 1000,
        "monthlySavingsCapacity": 0,
        "incomeStability": "stable",
        "dependents": 0,
        "hasIncomeProtectionInsurance": false
      },
      "expect": {
        "recommendedMonths": 3,
        "targetFundSize": 6000,
        "shortfall": 5000,
        "monthsToTarget": -1
      }
    }
  ],
  "spec": {
    "id": "emergency-fund",
    "version": "1.0.0",
    "schema": {
      "type": "object",
      "properties": {
        "monthlyEssentialExpenses": {
          "type": "number",
          "minimum": 0,
          "description": "Rent or mortgage, utilities, food, insurance, minimum debt payments — what must be paid even with no income"
        },
        "currentSavings": {
          "type": "number",
          "minimum": 0,
          "description": "What you already hold specifically as an emergency fund"
        },
        "monthlySavingsCapacity": {
          "type": "number",
          "minimum": 0,
          "description": "How much you can add to the fund each month going forward"
        },
        "incomeStability": {
          "type": "string",
          "enum": [
            "stable",
            "variable",
            "freelance"
          ],
          "description": "stable = single salaried job; variable = commission, shift work, at-risk role; freelance = self-employed or contract"
        },
        "dependents": {
          "type": "integer",
          "minimum": 0,
          "maximum": 10,
          "description": "People who rely on your income"
        },
        "hasIncomeProtectionInsurance": {
          "type": "boolean",
          "description": "Income-protection or critical-illness cover that would replace part of your income"
        },
        "recommendedMonths": {
          "type": "number",
          "readOnly": true
        },
        "targetFundSize": {
          "type": "number",
          "readOnly": true
        },
        "currentCoverageMonths": {
          "type": "number",
          "readOnly": true
        },
        "shortfall": {
          "type": "number",
          "readOnly": true
        },
        "monthsToTarget": {
          "type": "number",
          "readOnly": true
        },
        "percentFunded": {
          "type": "number",
          "readOnly": true
        }
      },
      "required": [
        "monthlyEssentialExpenses",
        "currentSavings",
        "monthlySavingsCapacity",
        "incomeStability",
        "dependents",
        "hasIncomeProtectionInsurance"
      ]
    },
    "defaultValues": [
      {
        "path": "$",
        "expr": "{\"monthlyEssentialExpenses\": 2500, \"currentSavings\": 3000, \"monthlySavingsCapacity\": 500, \"incomeStability\": \"freelance\", \"dependents\": 1, \"hasIncomeProtectionInsurance\": false}"
      }
    ],
    "derivations": [
      {
        "path": "$.recommendedMonths",
        "expr": "$max([3 + (incomeStability = \"variable\" ? 2 : incomeStability = \"freelance\" ? 3 : 0) + $min([dependents, 3]) - (hasIncomeProtectionInsurance ? 1 : 0), 3])"
      },
      {
        "path": "$.targetFundSize",
        "expr": "$round(monthlyEssentialExpenses * recommendedMonths, 2)"
      },
      {
        "path": "$.currentCoverageMonths",
        "expr": "$round(monthlyEssentialExpenses > 0 ? currentSavings / monthlyEssentialExpenses : 0, 2)"
      },
      {
        "path": "$.shortfall",
        "expr": "$round($max([0, targetFundSize - currentSavings]), 2)"
      },
      {
        "path": "$.monthsToTarget",
        "expr": "$round(shortfall <= 0 ? 0 : (monthlySavingsCapacity > 0 ? shortfall / monthlySavingsCapacity : -1), 1)"
      },
      {
        "path": "$.percentFunded",
        "expr": "$round(targetFundSize > 0 ? $min([100, currentSavings / targetFundSize * 100]) : 0, 1)"
      }
    ],
    "constraints": [
      {
        "id": "has-expenses",
        "expr": "monthlyEssentialExpenses > 0",
        "message": "Enter your monthly essential expenses to size the fund",
        "policy": "rollback"
      }
    ],
    "viewDefinition": {
      "renderer": "builtin",
      "defaultView": "main",
      "views": [
        {
          "id": "main",
          "label": "Emergency fund",
          "layout": "vertical",
          "components": [
            {
              "id": "assumptions",
              "type": "alert",
              "variant": "info",
              "label": "This is a projection from your assumptions",
              "text": "Essential expenses are assumed to stay flat through an emergency — no belt-tightening or income replacement is built in. The recommended-months figure is a heuristic (a 3-month base, adjusted for income stability, dependents and insurance), not a personal financial plan. Savings capacity is assumed constant going forward."
            },
            {
              "id": "expensesSet",
              "type": "fieldSet",
              "legend": "Your expenses and savings",
              "components": [
                {
                  "id": "expensesField",
                  "type": "numericField",
                  "label": "Monthly essential expenses",
                  "bind": "$.monthlyEssentialExpenses",
                  "placeholder": "2500"
                },
                {
                  "id": "savingsField",
                  "type": "numericField",
                  "label": "Current emergency savings",
                  "bind": "$.currentSavings",
                  "placeholder": "3000"
                },
                {
                  "id": "capacityField",
                  "type": "numericField",
                  "label": "Can save toward it each month",
                  "bind": "$.monthlySavingsCapacity",
                  "placeholder": "500"
                }
              ]
            },
            {
              "id": "riskSet",
              "type": "fieldSet",
              "legend": "What changes the target",
              "components": [
                {
                  "id": "stabilityField",
                  "type": "radioField",
                  "label": "Income stability",
                  "bind": "$.incomeStability",
                  "options": [
                    {
                      "value": "stable",
                      "label": "Stable — one salaried job"
                    },
                    {
                      "value": "variable",
                      "label": "Variable — commission, shift work, at-risk role"
                    },
                    {
                      "value": "freelance",
                      "label": "Freelance or self-employed"
                    }
                  ]
                },
                {
                  "id": "dependentsField",
                  "type": "numericField",
                  "label": "Dependents",
                  "bind": "$.dependents",
                  "placeholder": "1"
                },
                {
                  "id": "insuranceField",
                  "type": "checkboxField",
                  "label": "I have income-protection or critical-illness insurance",
                  "bind": "$.hasIncomeProtectionInsurance"
                }
              ]
            },
            {
              "id": "sep1",
              "type": "separatorLine"
            },
            {
              "id": "headline",
              "type": "group",
              "layout": "horizontal",
              "components": [
                {
                  "id": "monthsTile",
                  "type": "statTile",
                  "label": "Recommended months",
                  "bind": "$.recommendedMonths",
                  "format": "number"
                },
                {
                  "id": "targetTile",
                  "type": "statTile",
                  "label": "Target fund size",
                  "bind": "$.targetFundSize",
                  "format": "number"
                },
                {
                  "id": "shortfallTile",
                  "type": "statTile",
                  "label": "Amount still needed",
                  "bind": "$.shortfall",
                  "format": "number"
                },
                {
                  "id": "percentTile",
                  "type": "statTile",
                  "label": "Percent funded",
                  "bind": "$.percentFunded",
                  "format": "number",
                  "caption": "%"
                }
              ]
            },
            {
              "id": "coverageText",
              "type": "staticText",
              "text": "'Your current savings cover ' & $string(currentCoverageMonths) & ' months of essential expenses. ' & (shortfall <= 0 ? 'You have already reached the target.' : (monthsToTarget < 0 ? 'At zero monthly saving capacity, the gap will not close on its own — increase how much you can save each month to see a timeline.' : ('At your current saving rate, you reach the target in about ' & $string(monthsToTarget) & ' more months.')))"
            }
          ]
        }
      ]
    },
    "tests": [
      {
        "description": "freelancer with a dependent, partially funded — the baseline scenario",
        "given": {
          "$.monthlyEssentialExpenses": 2500,
          "$.currentSavings": 3000,
          "$.monthlySavingsCapacity": 500,
          "$.incomeStability": "freelance",
          "$.dependents": 1,
          "$.hasIncomeProtectionInsurance": false
        },
        "expect": {
          "$.recommendedMonths": 7,
          "$.targetFundSize": 17500,
          "$.currentCoverageMonths": 1.2,
          "$.shortfall": 14500,
          "$.monthsToTarget": 29,
          "$.percentFunded": 17.1
        }
      },
      {
        "description": "stable income, insured, no dependents, already over target — floor and cap both bind",
        "given": {
          "$.monthlyEssentialExpenses": 2000,
          "$.currentSavings": 8000,
          "$.monthlySavingsCapacity": 200,
          "$.incomeStability": "stable",
          "$.dependents": 0,
          "$.hasIncomeProtectionInsurance": true
        },
        "expect": {
          "$.recommendedMonths": 3,
          "$.targetFundSize": 6000,
          "$.currentCoverageMonths": 4,
          "$.shortfall": 0,
          "$.monthsToTarget": 0,
          "$.percentFunded": 100
        }
      },
      {
        "description": "freelancer with several dependents starting from zero savings — the worst-case shape",
        "given": {
          "$.monthlyEssentialExpenses": 3000,
          "$.currentSavings": 0,
          "$.monthlySavingsCapacity": 300,
          "$.incomeStability": "freelance",
          "$.dependents": 5,
          "$.hasIncomeProtectionInsurance": false
        },
        "expect": {
          "$.recommendedMonths": 9,
          "$.targetFundSize": 27000,
          "$.currentCoverageMonths": 0,
          "$.shortfall": 27000,
          "$.monthsToTarget": 90,
          "$.percentFunded": 0
        }
      },
      {
        "description": "zero saving capacity with a real shortfall — the gap cannot close, monthsToTarget is the -1 sentinel rather than a false 0",
        "given": {
          "$.monthlyEssentialExpenses": 2000,
          "$.currentSavings": 1000,
          "$.monthlySavingsCapacity": 0,
          "$.incomeStability": "stable",
          "$.dependents": 0,
          "$.hasIncomeProtectionInsurance": false
        },
        "expect": {
          "$.recommendedMonths": 3,
          "$.targetFundSize": 6000,
          "$.shortfall": 5000,
          "$.monthsToTarget": -1
        }
      }
    ]
  }
}