Emergency Fund Calculator
An emergency fund pays the bills if income stops or a large expense lands without warning. Add up the monthly costs you could not cut, pick how many months to cover, and the calculator shows the target, the gap and how long it takes to close it.
On this page
Calculator and results
Your essentials come to ₹50,000 a month, so 6 months of cover is ₹3,00,000. You have ₹1,00,000 set aside, about 2.0 months, leaving a gap of ₹2,00,000. Saving ₹20,000 a month at an assumed 6% return closes the gap in 10 months.
Three to six is a common starting point; one income, uneven pay or dependants argue for more. Your choice, not a rule.
An assumption you set. Check your bank's sweep FD rate or a liquid fund's recent returns; liquid fund returns are not guaranteed.
For same-day access. The rest can sit in a sweep FD or liquid fund.
Emergency fund target
₹3,00,000
6 months of essentials
Time to reach it
10 months
adding ₹20,000 a month
Gap to fill
₹2,00,000
₹1,00,000 already set aside
Monthly essentials
₹50,000
covered now: 2.0 months
In a savings account
₹50,000
1 months, instant access
In a sweep FD or liquid fund
₹2,50,000
the rest of the target
One way to hold the fund
- Savings account
- 16.7%
- ₹50,000
- Sweep FD or liquid fund
- 83.3%
- ₹2,50,000
These are options, not advice. A sweep FD linked to your savings account breaks when the balance runs short; a liquid fund has to be redeemed and its value can move a little. Keep the fund apart from money you invest for long-term goals.
Building the fund
| After | Added | Fund |
|---|---|---|
| 3 months | ₹60,000 | ₹1,61,808 |
| 6 months | ₹1,20,000 | ₹2,24,548 |
| 9 months | ₹1,80,000 | ₹2,88,233 |
| 10 months | ₹2,00,000 | ₹3,09,675 |
Saved scenarios stay in this browser only. No sign-up.
Emergency fund target
₹3,00,000
- What it is:
- A planner for the size of an emergency fund and the time to build it.
- What it calculates:
- Monthly essentials, the target fund, the gap from what you have, months to reach it and a suggested split between instant and near-instant access.
Key Assumptions
- Expenses stay the same while you build the fund; inflation is not included.
- The return you enter is an assumption and stays constant; tax on interest is not deducted.
- Health and term insurance are separate from the fund; a fund is not a substitute for cover.
How does the Emergency Fund Calculator work?
Monthly essentials are rent, loan EMIs, groceries, utilities, insurance premiums, school fees and anything else you would still have to pay. For yearly bills such as insurance or school fees, enter a twelfth of the yearly amount.
The target is monthly essentials times the months of cover you choose. Three to six months is a common starting point; people with one income, irregular pay, dependants or a large EMI often choose more. This is guidance to think with, not a rule.
The gap is the target minus savings you already keep aside for emergencies. The months to reach it assume you add the same amount at the end of every month and the fund earns the return you enter, compounded monthly.
The split is one way to hold the fund: a part in a savings account for same-day access, and the rest somewhere that may pay more, such as a sweep-in fixed deposit linked to the savings account or a liquid mutual fund. Check the terms and the current rates yourself; returns on a liquid fund are not guaranteed.
Worked example: if rent, EMIs, groceries, school fees and insurance come to ₹40,000 a month, six months of cover is ₹2,40,000. With ₹90,000 already set aside, the gap is ₹1,50,000, which takes 15 months at ₹10,000 a month.
Keep the fund where you can reach it within a day or two: a high-interest savings account or a sweep-in FD. Compare what each pays on the savings account interest rates and highest FD rates pages. Insurance does the rest: the Health Insurance Calculator and Term Insurance Calculator cover the risks an emergency fund cannot.
Emergency Fund Calculator formula
Target = E x m; Gap = max(0, Target - S); find the first n where S x (1 + i)^n + P x ((1 + i)^n - 1) / i >= Target
- E
- = monthly essential expenses
- m
- = months of cover
- S
- = savings already set aside
- P
- = amount you add each month
- i
- = assumed annual return / 12 / 100
- n
- = months to reach the target
At 0% return the months are simply the gap divided by the monthly amount, rounded up.
Emergency Fund Calculator: worked example
A household spending ₹50,000 a month on essentials, with ₹1,00,000 saved
- Target (6 months)
- ₹3,00,000
- Gap to fill
- ₹2,00,000
- Time at ₹20,000 a month, 6% assumed return
- 10 months
- In a savings account (1 month)
- ₹50,000
- In a sweep FD or liquid fund
- ₹2,50,000
Emergency Fund Calculator: frequently asked questions
How many months of expenses should an emergency fund cover?
Should I count EMIs in monthly expenses?
Where should I keep an emergency fund?
Should I pay off debt or build an emergency fund first?
Is interest on an emergency fund taxed?
How much emergency fund do I need on a ₹40,000 monthly spend?
Further reading
An FD at 7.5% and PPF at 7.1% are not what they look like. FD interest is taxed at your slab and PPF interest is not.
Comprehensive comparison between Mutual Fund SIPs and Bank Fixed Deposits in India. Compare after-tax returns, volatility, inflation beating, and liquidity.
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Reviewed by Pradipta Ray, MBA (Finance) · Updated