An emergency fund is money set aside for job loss, medical bills or urgent repairs, so you don't have to borrow or sell investments at a bad time. This calculator sets your target and shows how long it takes to build.
How much do you need?
Target = monthly essential expenses × months of coverMonths to build = (target − already saved) ÷ monthly savingEssentials are rent or EMIs, food, utilities, insurance premiums, school fees and transport, not holidays or shopping.
| Your situation | Suggested cover |
|---|---|
| Salaried, stable job, two incomes at home | 3–6 months |
| Salaried, single income or dependants | 6 months |
| Freelancer, business owner or variable pay | 9–12 months |
Worked example
Example: Essentials of ₹40,000 a month, 6 months' cover
Target = ₹2,40,000. Already saved: ₹1,00,000.
Saving ₹15,000 a month, you reach the target in about 10 months.
Where to keep it
- A high-interest savings account for the first month or two of expenses.
- Sweep-in FDs or a liquid mutual fund for the rest; both can be withdrawn within a day.
- Not in equity funds, which can fall just when you need the money.
- Health insurance should be separate; a hospital stay can wipe out an emergency fund.
How to use this calculator
- Enter your monthly essential spending.
- Choose how many months to cover.
- Add what you've saved and can save each month.
FAQs
How many months should I cover?
Six months is a common guide for salaried people; freelancers often aim for 9–12 months.
Results are estimates and aren't financial advice. For decisions about your own money, check with a qualified adviser. Spotted a mistake? Tell us.