How to use the emergency fund calculator
- Enter your essential monthly expenses in each category.
- Tell us how secure your income is, whether anyone depends on you and how many earners your household has.
- Pick the months of cover; the suggested figure is a starting point.
- Enter the liquid savings you already have and how many months you want to take to build the rest.
- Read the target, the gap and the monthly saving, then decide where to keep the money.
How many months of cover
| Your work | No dependents | Dependents, two earners | Dependents, one earner |
|---|---|---|---|
| Very secure income | 3 months | 3 months | 6 months |
| Private salaried job | 6 months | 6 months | 9 months |
| Variable or self-employed | 9 months | 9 months | 12 months |
A guide, not a rule. Add more if you have a medical condition in the family, an EMI that takes a large share of income, or work in a sector with frequent lay-offs.
Emergency fund by monthly expenses
| Essentials a month | 3 months | 6 months | Save a month to build 6 in a year |
|---|---|---|---|
| ₹30,000 | ₹90,000 | ₹1,80,000 | ₹15,000 |
| ₹50,000 | ₹1,50,000 | ₹3,00,000 | ₹25,000 |
| ₹75,000 | ₹2,25,000 | ₹4,50,000 | ₹37,500 |
| ₹1,00,000 | ₹3,00,000 | ₹6,00,000 | ₹50,000 |
Target = essential monthly expenses × months of cover. Monthly saving = (target − savings you already have) ÷ months to build it.
Keep it working, but safe
- Separate account. Keep the fund away from your spending account so it is not used for everyday purchases.
- Top it up when your expenses rise, for example after a new EMI or a rent increase.
- Refill after use. Treat rebuilding it as your first saving goal.
- Then invest. Money beyond the fund can go into longer-term goals; see the SIP calculator or FD calculator.
Frequently asked questions
How much emergency fund should I have?
Most planners suggest 3 to 6 months of essential expenses, and more if your income is uncertain. A salaried person in a secure job may manage with 3 months; a private-sector employee with dependents or a single-income family should aim for 6 to 9; freelancers and business owners 9 to 12.
What counts as essential expenses?
Rent or home loan EMI, groceries, utilities, insurance premiums, school fees, transport, medicines and other loan EMIs: what you must pay even if your income stops. Leave out holidays, shopping, eating out and investments such as SIPs, which you can pause.
Where should I keep my emergency fund?
Somewhere safe and quick to reach. A common split is about a month's expenses in a savings account, with the rest in a liquid mutual fund or a sweep-in fixed deposit. Bank deposits are insured by DICGC up to ₹5 lakh per depositor per bank. Avoid equity funds and locked-in schemes.
Is a liquid fund safe for an emergency fund?
Liquid funds invest in very short-term debt, so their value is fairly stable, but returns are not guaranteed. Redemptions usually reach your bank the next working day, and many funds allow instant redemption of up to ₹50,000 a day (or 90% of your holding, if lower).
Should I count my credit card or FD as an emergency fund?
Not a credit card: borrowing at the interest rates cards charge can turn an emergency into debt. An FD can be part of the fund if you can break it quickly; you usually lose a small part of the interest when you withdraw early.
Should I invest or build an emergency fund first?
Build at least a basic fund, say 3 months, before investing for long-term goals, and get health insurance. Without them, an emergency can force you to sell investments at a bad time or take an expensive loan.