Reserve size needed for a user-chosen recession duration at user-entered essentials.

2,500 monthly essentials with zero fallback income over 18 months requires a 45,000 reserve. Add 1,000 a month of partial income or benefits and the reserve drops to 27,000. Reserves are the difference between a recession being a career pause and a financial catastrophe.

How to use it

Enter monthly essential expenses, the months of reserve you want (12-24 is typical for deeper-recession planning, longer if you're the sole earner), and any expected monthly income you'd still have (benefits, partial work, spouse's income).

What the result means

Primary is total reserve needed. Secondary shows monthly shortfall (essentials minus expected income), coverage months at current reserve, and annual equivalent. Comparing to current cash savings shows the gap you'd need to close.

When this matters

Sole earners, self-employed with volatile income, people in cyclical industries, and anyone with large fixed commitments (mortgage on single income). For dual-earner households with stable jobs, standard 6-month funds are often sufficient.

Quick example

With monthly essentials of 2,500 and reserve months target of 18 (plus expected partial income of 1,000), the result is 27,000.00. Change any figure and watch the output shift — it's often more useful to see the pattern than to memorise the formula.

Which inputs matter most

You enter Monthly Essentials, Reserve Months Target, and Expected Partial Income. Not every input has equal weight. Flip one at a time toward extreme values to feel which ones move the needle most for your situation.

What's happening under the hood

Reserve equals monthly shortfall (essentials minus partial income) times target months. If partial income exceeds essentials, no reserve is needed — the tool flags this. Does not account for reserve returns (kept in cash for immediate access, so returns are typically low). The formula is listed in full below. If the number looks off, you can retrace the calculation by hand — that's the point of showing the working.

What to do with a low result

A disappointing result is information, not a judgement. Pick the single input that dragged the figure down most and focus the next quarter on that one factor. Breadth-first improvement rarely works; depth-first on the worst input usually does.

What this doesn't capture

The score is a composite of the inputs you provide. Life context — job security, family obligations, health, housing — doesn't appear in the math but shapes the real picture. Use the number as a prompt, not a verdict.