Emergency Fund Calculator
Find how big your emergency fund should be, how far your current savings get you, and a monthly plan to fully fund it.
Coverage Options
How big a fund you need at ₹40,000/month of essentials, and how long your current savings already last
| Cover | Fund Needed | Shortfall | Months Already Covered |
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How the emergency fund is calculated
An emergency fund is simply a multiple of your essential monthly expenses kept in safe, instantly accessible savings. We subtract what you already have to find your shortfall, then divide it across the months you choose to build a realistic savings plan.
Why 6 months and where to park it
Six months of essentials covers most realistic shocks — a job loss, a medical event, or a major repair — while you recover. Keep 3 months if you have a very stable salaried income, and 9–12 months if you are self-employed, freelance, or a sole earner.
Park the bulk in liquid or overnight mutual funds. They aim for FD-like safety, give 1-day redemption (₹50k or 90% instant), and historically return slightly more than a savings account.
A sweep-in (flexi) fixed deposit linked to your bank account earns FD interest but auto-breaks instantly when you withdraw — no penalty on the rest. Ideal for the portion you may need at a moment's notice.
Frequently asked questions
How many months of expenses should an emergency fund cover?
A common rule is 3 to 6 months of essential expenses. Salaried people with stable jobs and a working spouse can keep closer to 3 months, while freelancers, business owners, single earners, or anyone with dependents and EMIs should target 6 to 12 months. The default in this calculator is 6 months.
What counts as an essential expense?
Only the spending you cannot avoid if your income stopped: rent or housing, loan EMIs, groceries, utilities and bills, transport, insurance premiums, school fees, and basic medicines. Leave out discretionary spends like dining out, holidays, shopping, and subscriptions — your emergency fund covers survival, not lifestyle.
Where should I keep my emergency fund?
Keep it safe and liquid, not invested in equity. Good options are a high-interest savings account, a sweep-in / flexi fixed deposit, or liquid and overnight mutual funds. A common split is one month in your savings account for instant access and the rest in a liquid fund or sweep FD for slightly better returns.
Should I build an emergency fund before investing?
Yes — generally build at least 3 months of cover before you start aggressive investing. Without a buffer, a sudden expense forces you to sell investments at a bad time or take high-interest loans. Once your fund is in place, your long-term SIPs and investments can run uninterrupted through market dips.
Should the fund grow with inflation and lifestyle changes?
Yes. Review it once a year. If your rent, EMIs, or family size has risen, recalculate using your new monthly essentials so the fund still covers the same number of months. A fund sized for last year may fall short today.