Emergency Fund Calculator — India (₹)
Calculate exactly how much emergency corpus you need based on your monthly expenses. Find out if you're covered, how many months your current savings last, and where to keep your safety net.
How much emergency fund should I have?
Financial advisors recommend 3–6 months of essential expenses. If you are self-employed, have dependents, or work in a volatile industry, target 9–12 months. Use this calculator to get your specific number based on actual monthly expenses.
Where should I keep my emergency fund?
Emergency funds should be liquid and safe: (1) High-interest savings account (3–4%), (2) Liquid mutual funds (6–7% return, same-day redemption), (3) Sweep-in FD (auto-breaks into small FDs, earns FD rates). Avoid locking it in equity, PPF, or illiquid assets.
Should I invest or build emergency fund first?
Always build your emergency fund first — even before investing. Without it, a medical emergency or job loss may force you to redeem investments at a loss, destroying the compounding effect.
Can I use a credit card instead of an emergency fund?
No. Credit cards are not a substitute for an emergency fund. Medical bills, job loss, or major repairs can easily exceed credit limits and accumulate 36–48% annual interest. An emergency fund ensures you never go into high-interest debt during a crisis.
How long does it take to build a 6-month emergency fund?
If your monthly expenses are ₹40,000, a 6-month emergency fund = ₹2.4 lakh. Saving ₹20,000/month in a liquid fund, you'll reach this in about 12 months. With existing savings of ₹50,000, you'd need only 10 months. Use this calculator to track your gap and coverage.
Should I factor in EMIs and insurance premiums in my emergency fund?
Yes. Your emergency fund must cover ALL fixed obligations — rent, loan EMIs, insurance premiums, school fees, and utilities — not just food and utilities. This ensures you can meet all financial commitments even without income for the target number of months.