Emergency Fund Calculator
An emergency fund is your financial safety net — 3 to 6 months of essential expenses kept in liquid savings. Without it, any job loss, medical emergency, or unexpected expense forces you to take on debt. This calculator tallies your monthly costs and tells you exactly how much to set aside.
Frequently Asked Questions
How many months should my emergency fund cover?+
3 months is the minimum for dual-income households with job security. 6 months is recommended for most people. 12 months for self-employed, freelancers, or anyone with irregular income. The goal is to survive your longest expected income gap without touching investments.
Where should I keep my emergency fund?+
Keep it in liquid, low-risk accounts: (1) High-yield savings account (2.5–5% interest), (2) Liquid mutual funds (4–6% returns, redeemable in 24 hours), (3) Short-term FDs with sweep facility. Never invest emergency funds in equity, crypto, or anything that can lose value or take time to access.
Should I include discretionary expenses (dining out, entertainment)?+
No — emergency fund covers survival expenses only. In a real emergency, you'd cut discretionary spending. Include: rent, groceries, utilities, medicines, transport to work, insurance premiums, and non-deferrable EMIs. Exclude: dining, subscriptions, holidays, shopping.
Once I build it, am I done?+
Review annually. If your expenses increase (new EMI, child's school fees), top up the fund. After a genuine emergency use, rebuild it before anything else — before investments, before discretionary spending. The emergency fund is non-negotiable foundation of financial health.