Emergency Fund Calculator
Work out your target emergency fund based on monthly expenses and coverage months, plus the monthly savings needed to reach it.
Monthly Essential Expenses
₹
Coverage Months
months
Current Emergency Savings
₹
Months to Reach Goal
months
Target Emergency Fund
₹ 3,00,000
Remaining Gap
₹ 3,00,000
Suggested Monthly Savings
₹ 25,000
How much should you keep in an emergency fund?
An emergency fund is cash set aside to cover essential living costs — rent, groceries, utilities, loan payments — if you lose your income unexpectedly. Most financial planners suggest saving 3-6 months of expenses if you have stable, salaried income with a second earner in the household, and 6-12 months if your income is variable (freelance, commission, business ownership) or you're the sole earner.
How this calculator works
Enter your average monthly essential expenses and how many months of coverage you want. The calculator multiplies the two to get your target fund size, then — if you already have some savings set aside — works out how much you'd need to save each month to close the gap within your chosen timeframe.
Monthly Savings Needed = (Target − Current Savings) ÷ Months to Goal
Example
If your essential monthly expenses are ₹50,000 and you want 6 months of coverage, your target emergency fund is ₹3,00,000. If you already have ₹50,000 saved and want to close the remaining ₹2,50,000 gap within 12 months, you'd need to save roughly ₹20,833 per month.
Common Use Cases
- Figuring out how large your safety net should be before investing surplus cash elsewhere.
- Setting a concrete monthly savings target to build (or rebuild) a fund after an emergency.
- Deciding whether 3, 6, or 12 months of coverage fits your job stability and household situation.
FAQs
How many months of expenses should I save?
3-6 months is the standard guideline for dual-income households with stable jobs. If you're self-employed, work on commission, are the sole income earner, or work in an industry prone to layoffs, aim higher — 6-12 months gives you a longer runway to find new income without touching long-term investments or going into debt.
Where should I keep my emergency fund?
Keep it somewhere safe and easy to access on short notice — a high-yield savings account or a liquid/ short-duration fund — rather than in stocks or locked-in fixed deposits. The goal is availability when you need it, not maximum returns.
Does this calculator count only essential expenses?
It should. Base the "Monthly Expenses" field on rent/EMI, groceries, utilities, insurance, and minimum debt payments — the costs you'd still have to cover with no income — rather than your full monthly spending including discretionary items.