Business Emergency Fund Calculator
Enter fixed costs, months of cover and what you have saved so far.
Target cash reserve
β
Enter values above
Gap to fill
β
Months to reach target
β
Coverage today (months)
β
Progress
β
Reserve per employee-free month
β
Worked example
With the default inputs shown below, this calculator returns the following results:
| Input | Value |
|---|---|
| Monthly fixed costs ($) | 12000 |
| Months of cover required | 6 |
| Current cash reserve ($) | 20000 |
| Monthly amount saved toward it ($) | 2000 |
| Result | Value |
|---|---|
| Target cash reserve | $72,000 |
| Gap to fill | $52,000 |
| Months to reach target | 26 months |
| Coverage today (months) | 1.7 |
| Progress | 27.78% |
| Reserve per employee-free month | $12,000 |
Values shown are produced by this page in your browser; change any input to update them.
How to use the Business Emergency Fund Calculator
- Monthly fixed costs ($) β default 12000
- Months of cover required β default 6
- Current cash reserve ($) β default 20000
- Monthly amount saved toward it ($) β default 2000
- Press Calculate to update the results instantly.
Frequently asked questions
Three months for a stable service business, six for most, and twelve for anything seasonal, hardware-heavy or dependent on a single large customer.
Yes β include payroll, rent, software, insurance and loan payments in the monthly fixed costs figure. Exclude variable costs that stop automatically when trade slows.
In an instant-access account or money market fund. The point of the reserve is availability, not yield, so do not lock it in a term deposit you cannot break.