How much should I keep in my business emergency fund?
If business slowed down or you unexpectedly needed time away, how long could your cash reserves cover the essentials?
This calculator helps you explore a savings target based on your business’s ongoing costs and the number of months you want covered. You can see what you already have available, what’s still needed and how long it could take to close the gap.
How to use it
Enter the essential monthly expenses your business would still need to pay during a disruption, such as rent, insurance, software and essential staffing.
Add other commitments the fund needs to support, such as loan repayments or minimum owner drawings. Count each amount only once.
Choose your desired months of cover, then enter the emergency cash you already have saved. Exclude money reserved for tax, upcoming bills or other purposes.
If you’d like a savings timeline, add the amount you plan to contribute each month.
Understanding your result
Your target fund is your total essential monthly costs multiplied by your chosen months of cover.
The savings gap shows how much more you need to reach that target. Current months of cover shows how long your existing emergency savings could cover the costs entered.
The savings timeline assumes regular monthly contributions, with no withdrawals, interest or changes in costs.
Choosing your months of cover
There isn’t one target that suits every business. Consider how reliable your income is, whether you depend on a few large customers, how seasonal your work is and how quickly you could reduce costs.
Try different periods of cover to see what each would mean for your savings goal.
How much should I keep in my business emergency fund?
Explore the cash buffer your business could need to cover essential costs during a disruption, and work out what you still need to save.
All amounts are NZD. Boxes start at 0 and cleared boxes count as 0.
Before you set your savings target
- A no-income scenario: The target assumes no income is available to cover the costs entered during the disruption. Include essential costs that continue, rather than every normal trading expense.
- Use cash amounts: Enter what you actually need to pay, including GST where charged. GST refunds and tax liabilities are not calculated. Keep tax savings separate from your emergency fund and allow for obligations not covered elsewhere.
- Count each cost once: Avoid duplicating loan repayments, interest or owner drawings across fields. Include only the minimum drawings you intend this business fund to support; personal emergency savings are separate.
- Your circumstances matter: The appropriate cover depends on income reliability, customer concentration, seasonality and how quickly costs can be reduced. This calculator does not recommend a specific number of months.
- A target is not a cash flow forecast: Annual bills, payment timing, one-off emergencies and changing costs can affect the amount needed. Cash above this target is not automatically available to withdraw.
General planning guidance only, not personalised accounting, tax or financial advice. Review your emergency fund and savings contributions alongside your wider cash flow with your accountant.
Want a cash buffer that fits your business?
We can help you build a comprehensive cash flow forecast that considers your income, expenses, tax obligations, debt repayments and planned purchases—so your emergency savings fit into a wider financial plan.
Talk to us about cash flow planning
Disclaimer: This calculator provides general planning guidance, not personalised accounting, tax or financial advice. It assumes no income is available to cover the entered costs during a disruption. It does not calculate tax, model payment timing or account for unexpected one-off costs. Review your target and savings contributions alongside your wider cash flow.