/ Free tool

Emergency Fund Calculator

Most advice says "three to six months" without saying three to six months of what. Enter what you actually have to pay each month and get a real number, plus how long it takes to reach it.

1 · Your essential monthly costs

Only what you would still have to pay with no income. Leave anything you could pause — eating out, subscriptions, travel, shopping — at zero.

2 · Your situation

This sets how many months you should aim for.

Your target

₹0

Fill in your costs above.

Monthly essentials

₹0

Time to get there

—

Add a monthly saving amount.

Milestones

  • 2 weeks — starter₹0
  • 1 month₹0
  • 3 months₹0

How this works

Your target is your essential monthly spend multiplied by the number of months your situation calls for. That is the whole calculation — the difficulty is being honest about which costs are genuinely essential, which is why the form asks line by line rather than for one number.

For most people essentials come to somewhere between 45% and 60% of income. That gap is usually what makes the project feel possible: you are not saving six months of salary, you are saving six months of this.

Existing loan EMIs count as essential. Missing them damages your credit record and triggers penalties, so they cannot be treated as optional.

For where to keep it, what counts as an emergency, and how to build the fund when nothing feels spare, the full guide is here: how to build an emergency fund.

FAQs

How much emergency fund do I need?

Between three and six months of your essential monthly expenses — not your income. Three months suits salaried people with in-demand skills and no dependants. Six suits sole earners, freelancers and business owners. Because essentials are usually 45–60% of income, the target is far smaller than most people assume.

Should I calculate on income or expenses?

Expenses, and only the essential ones — rent or EMI, utilities, groceries, insurance premiums, existing loan repayments, transport and school fees. Calculating on income produces a number so large that most people never start.

Where should I keep an emergency fund in India?

Somewhere reachable within about a day whose value cannot fall: a separate savings account, a sweep-in fixed deposit, or for the portion beyond three months, a very short-duration debt fund. Bank deposits are insured by DICGC up to ₹5 lakh per depositor per bank, across all deposits at that bank combined.

Should I invest my emergency fund?

No. Its job is safety and instant access, not growth. Markets fall for the same reasons people lose income, so you would be selling at a loss exactly when you need the cash.

This tool is educational and does not recommend any product, provider or security. For advice specific to your circumstances, speak to a SEBI-registered investment adviser.