Emergency Fund Calculator
Work out your emergency fund target, how many months your savings cover, and how long to reach it.
Emergency fund target
2.4 lakhHow it works
Target = Monthly expenses × Months of cover
Still to save = Target − Already saved (not below ₹0)
Months covered now = Already saved ÷ Monthly expenses
Time to reach the target = Still to save ÷ Amount added each month, rounded up
Interest on your savings is ignored, so the time shown is slightly cautious.
Worked example
Essential expenses ₹40,000 a month, 6 months of cover, ₹1,00,000 already saved, and ₹20,000 added each month.
- Target = ₹40,000 × 6 = ₹2,40,000
- Still to save = ₹2,40,000 − ₹1,00,000 = ₹1,40,000
- Months covered now = ₹1,00,000 ÷ ₹40,000 = 2.5
- Time = ₹1,40,000 ÷ ₹20,000 = 7, rounded up to 7 months
Frequently asked questions
What is an emergency fund?
An emergency fund is money set aside for unexpected events such as a job loss, a medical bill or an urgent repair. It lets you handle a shock without breaking long-term investments or taking expensive loans.
How many months of expenses should I keep?
There is no single right answer. People often aim for several months of essential expenses, and more if their income is irregular, they support a family, or their job is less secure. Choose a number of months that fits your situation and enter it above.
Which expenses should I include?
Include the costs you would still have to pay in a bad month: rent or home loan EMI, food, utilities, insurance premiums, school fees, transport and other loan EMIs. You can leave out spending you could pause, such as holidays.
Where should I keep my emergency fund?
Somewhere safe and easy to reach quickly. RBI's Financial Awareness Messages suggest keeping some portion of your savings in liquid assets so that you can withdraw money when needed, and weighing safety, liquidity and return. Many people use a savings account or a deposit they can break if needed; check any premature withdrawal terms first.
How is the time to build the fund calculated?
The calculator divides the gap (target minus what you have saved) by the amount you can add each month and rounds up to whole months. It ignores any interest your savings earn, so you may get there slightly sooner.
What does "months covered now" mean?
It is how long your current savings would last at your monthly expenses. For example, ₹1,00,000 saved with ₹40,000 of monthly expenses covers 2.5 months.
Should I invest before my emergency fund is ready?
That is a personal choice. Without an emergency fund, an unexpected cost may force you to sell investments at a bad time or borrow. Many people build at least part of the fund first, then invest alongside topping it up.