How big should your business emergency fund be?
How many months your business could survive with no sales today, how many it should, and how long it takes to get there.
emergency fund to aim for
- Months of costs
- –
- You’re covered for
- –
- Still to set aside
- –
- Time to get there
- –
Estimate only. Works in any currency.
Want a second opinion on these numbers?
Send us your numbers. We’ll reply with where we’d find the money to build the reserve.
How the numbers are worked out
Monthly need = fixed costs + minimum owner pay
Target = monthly need × months (3, 4.5 or 6)
Covered = cash today ÷ monthly need
Questions
Why does a business need an emergency fund?
A lost client, a broken machine, a slow season or a late payer can stop cash for weeks. A reserve lets you pay staff and yourself without emergency borrowing.
Where should I keep it?
In a separate business savings account you can reach within a day, not in the account you pay bills from.
Is my data sent anywhere?
No. Everything is calculated in your browser. Nothing is stored or sent unless you use the form at the bottom of the page.
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