Emergency Fund & Safety Net Calculator

How this tool works

Reviewed 6 September 2026. Emergency savings guidelines, with a savings account and mortgage offset comparison.

Calculation outline

1. Adds up essential bills: housing, food, utilities, transport, minimum debt repayments and insurance. Optional spending is kept separate.
2. Suggests 3, 6, 9 or 12 months of savings based on household income, debts and job security.
3. Works out how much more you need and how long it could take to save at your monthly rate.
4. Shows a fixed illustrative parking example: 5% savings interest taxed at 32%, versus a 6.1% linked offset against non-deductible debt at least as large as the buffer, before fees. These are not current product quotes.

Worked example

Example: essential monthly expenses of $3,500 require a 6-month safety net of $21,000. With $6,000 saved and $600/month contributions, the $15,000 savings gap is bridged in 25 months.

Limits

• Assumes discretionary spending can be eliminated immediately upon income disruption.
• Does not account for severance payouts, income protection insurance, or emergency Centrelink entitlements.

Sources

• ASIC Moneysmart emergency funds
• Reserve Bank of Australia household balance sheet data

This tool provides general information and illustrative estimates only. It does not consider your objectives, financial situation or needs and is not personal financial, tax or legal advice.