Finance
How long emergency fund fit last
Work out how many months your cash fit cover essential spending when your income drop.
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Result dey update as you type; no Calculate button dey. All calculation dey run inside your browser.
Months wey cash fit last
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Summary
| Amount | |
|---|---|
| Cash wey you fit use | — |
| Monthly shortfall | — |
| Buffer amount | — |
| Total cash | — |
How cash split
The bars dey use all your cash as their scale. Buffer na money wey you choose to keep back, even for emergency. Usable cash na the money wey fit actually fund your runway.
How long cash fit last at different buffer levels
| Buffer wey you keep aside | Cash wey you fit use | How long cash fit last |
|---|
For every row, we dey calculate usable cash as cash times (1 minus buffer), then divide am by the same monthly shortfall.
Formula
Monthly shortfall = monthly expenses − monthly emergency income. Usable cash = cash × (1 − buffer%). Runway = usable cash ÷ monthly shortfall when the shortfall positive. If income cover expenses, na no cash limit on the runway for these figures.
Example wey show the calculation
Cash $120,000 with 10% buffer: usable cash na $120,000 × 90% = $108,000, kept back $12,000. Monthly shortfall na $15,000 − $5,000 = $10,000, so runway na $108,000 ÷ $10,000 = 10.8 months.
Where e fit work and limits
The model assume say expenses and emergency income remain the same every month, with no interest on cash, new debts, one-off costs or buffer changes. Real emergencies no dey come evenly: one big bill fit shorten runway pass wetin a smooth monthly average suggest.
Questions wey people dey ask often
Wetin the buffer dey do?
Na money wey you deliberately keep back: money for costs wey you must pay, deposit or reserve for after the emergency. Bigger buffer go shorten runway but leave you some cushion.
Wetin if income for emergency cover all my expenses?
Then the shortfall go be zero or negative, and you no go dey use up cash. For these figures, cash no limit the runway. The calculator go explain am instead of dividing by zero.
Expenses na normal spending abi only the bare minimum?
Use only essential spending to estimate the emergency runway for that budget. If you use normal spending, the runway go shorter and more cautious. Run both and compare.
Cash dey earn interest as I dey withdraw am?
We no include am here. Interest on cash fit be small compared with monthly spending; assuming no interest dey keep this estimate more cautious.
How much cash runway enough?
E depend on your situation; this calculator no prescribe one target. People fit plan for a few months or a year. The table above dey show how each buffer level change the number of months.
Other tools wey relate to dis
- Calculator for savings target — build the cash reserve again after you use am
- Calculator for clearing credit card debt — clear credit-card debt wey dey drain the same budget
- Calculator for retirement savings — planning savings for long term
Results na estimates; dem no replace advice from qualified professional.