Emergency Fund Calculator
An emergency fund is money set aside for job loss, medical bills or urgent repairs. Enter your essential monthly costs to see the target and the time it will take to build.
Results
Emergency fund target
₹3,00,000
- Still to save
- ₹2,00,000
- Time to reach the target
- 1 year, 1 month
- Already funded
- 33.3%
You need ₹3,00,000.00 (6 months of expenses) and are ₹2,00,000.00 short; saving ₹15,000.00 a month gets you there in 1 year, 1 month.
Show the calculation steps
- Target = monthly expenses × months of cover = ₹50,000.00 × 6 = ₹3,00,000.00.
- Shortfall = target − current savings = ₹3,00,000.00 − ₹1,00,000.00 = ₹2,00,000.00.
- Saving ₹15,000.00 a month (earning 4% a year) reaches the target after 13 months.
- Keep an emergency fund in an easily accessible, low-risk place such as a savings account or liquid fund.
How big should the fund be?
A common guide is three to six months of essential expenses. Choose more if you have one income, dependants, a variable income or few other safety nets.
Where to keep it
An emergency fund should be safe and accessible: a savings account, a sweep-in fixed deposit or a liquid fund. Do not invest it in assets that can fall right when you need it.
Formula
Target = Monthly essential expenses × Months of cover
Shortfall = Target − Current savings
Where:
- Monthly essential expenses
- = Costs you must pay even without income
- Months of cover
- = How many months of expenses you want covered
Example calculation
₹50,000 monthly expenses, 6 months of cover, ₹1 lakh saved and ₹15,000 a month
Inputs
- Monthly Essential Expenses
- ₹50,000
- Months of Cover
- 6 months
- Emergency Savings Now
- ₹1,00,000
- Monthly Saving Towards It
- ₹15,000
- Interest Earned on the Fund
- 4 %
Result
- Emergency fund target
- ₹3,00,000
- Still to save
- ₹2,00,000
- Time to reach the target
- 1 year, 1 month
- Already funded
- 33.3%
Step-by-step
- Target = monthly expenses × months of cover = ₹50,000.00 × 6 = ₹3,00,000.00.
- Shortfall = target − current savings = ₹3,00,000.00 − ₹1,00,000.00 = ₹2,00,000.00.
- Saving ₹15,000.00 a month (earning 4% a year) reaches the target after 13 months.
Important notes
- Results are estimates based on the values you enter. They assume the rates stay constant and exclude taxes and fees unless stated.
Disclaimer: This calculator provides estimates for informational purposes and should not be considered financial advice. Actual figures from lenders, banks and investment products can differ because of fees, taxes, rounding rules and changing rates. Consult a qualified professional before making financial decisions.
Frequently asked questions
How much emergency fund do I need?
Typically three to six months of essential expenses, more if your income is uncertain.
What counts as an essential expense?
Costs you must pay even if income stops: housing, food, utilities, insurance, EMIs and transport.
Should I invest my emergency fund?
Keep it in safe, liquid places. Investing it in volatile assets defeats its purpose.
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