Emergency Fund Ratio Calculator

Calculate Emergency Fund Ratio



Formula

The formula to calculate the Emergency Fund Ratio (EFR) is:

\[ EFR = \frac{EF}{ME} \]

Where:

Definitions

Example

Let's say the total emergency fund amount (EF) is $10,000 and the total monthly expenses (ME) are $2,000. Using the formula:

\[ EFR = \frac{10000}{2000} \]

We get:

\[ EFR = 5 \]

So, the emergency fund ratio is 5, meaning your emergency fund can cover 5 months of expenses.

Extended information about "Emergency-Fund-Ratio-Calculator"

Emergency Fund Ratio

Definition: The emergency fund ratio measures the adequacy of your emergency savings relative to your monthly expenses.

Formula: \( \text{EFR} = \frac{\text{Emergency Fund}}{\text{Monthly Expenses}} \)

Example: \( \text{EFR} = \frac{12000}{2000} \)

Emergency Fund Amount Calculator

Definition: This calculator determines the total amount needed for an emergency fund based on monthly expenses and the desired number of months of coverage.

Formula: \( \text{EFA} = \text{Monthly Expenses} \times \text{Months of Coverage} \)

Example: \( \text{EFA} = 2000 \times 6 \)

Emergency Fund Savings Calculator

Definition: This calculator helps you determine how much you need to save each month to reach your emergency fund goal.

Formula: \( \text{Monthly Savings} = \frac{\text{Emergency Fund Goal}}{\text{Months to Save}} \)

Example: \( \text{Monthly Savings} = \frac{12000}{12} \)

Recommended Emergency Fund Amount

Definition: The recommended emergency fund amount is typically 3 to 6 months' worth of living expenses.

Formula: \( \text{Recommended Amount} = \text{Monthly Expenses} \times 3 \text{ to } 6 \)

Example: \( \text{Recommended Amount} = 2000 \times 3 \)