Emergency Fund Calculator

Calculate the right emergency fund size based on your monthly expenses, job stability, dependents, and income sources. Find target amount and savings timeline.

Emergency Fund Calculator

How much buffer you need and how fast you can build it

Monthly essential expenses Rs 50,000
Rs 5KRs 5L
Rs
Target months of cover 6 months
324
mo
Already saved Rs 20,000
Rs
Monthly saving toward fund Rs 5,000
Rs
Employment type
Target fund
---
months of expenses
Still needed
---
to reach target
Time to complete
---
at current savings rate
Monthly expenses---
Target fund (months x expenses)---
Already saved---
Gap to target---
Timeline to complete---
Recommended (by job type)---
Fund saved vs gap remaining
Saved so far: ---
Still needed: ---

Estimates for personal financial planning. Consult a financial advisor for personalised advice.

Emergency fund target at different coverage levels
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ThriftRupee Insight

70% of Indians have less than 1 month of expenses saved as emergency funds. The standard advice is 6 months — but that is for salaried employees with stable income. Freelancers and business owners need 12 months. If you have dependents, a home loan EMI, or a single income household, 9-12 months is prudent. Keep emergency funds in liquid instruments: savings account, liquid MF, or short-term FD — never in equity.

Emergency Fund Calculator — How Much Do You Need?

An emergency fund is 3-12 months of essential expenses kept in a liquid account. It prevents you from breaking investments or taking loans during job loss, medical emergencies, or unexpected expenses. Build this before starting SIPs.

Frequently asked questions

How much emergency fund do I need?▼
The right size depends on your situation: Salaried with stable job = 3-6 months expenses. Salaried in volatile industry = 6-9 months. Self-employed/freelancer = 9-12 months. Single income family with dependents = 9-12 months. The fund should cover all essential expenses — rent/EMI, food, utilities, insurance premiums, school fees — not discretionary spending.
Where should I keep my emergency fund?▼
Best options: (1) Savings account — fully liquid, DICGC insured up to Rs 5 lakh, earns 3.5-7% (small finance banks). (2) Liquid mutual funds — slightly better returns, T+1 redemption, safe for amounts above Rs 5L. (3) Short-term FD — can be broken instantly at most banks, slight penalty. Avoid stocks, equity MFs, or PPF for emergency fund — volatility and lock-in defeat the purpose.
Should emergency fund and SIP come from the same money?▼
No. Build your emergency fund first, before starting or increasing SIPs. An emergency fund is financial insurance — without it, any unexpected expense forces you to break your investments (often at a loss) or take high-interest loans. The sequence: income → emergency fund → insurance → SIP → other investments.

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