Emergency Fund Calculator
Calculate your ideal emergency fund. Determine savings target, monthly contributions, and build timeline for financial security.
Your Financial Profile
Fund Progress
Monthly Savings Plan
| Month | Monthly Save | Cumulative | Months Covered | Status |
|---|
Emergency Coverage
Your ₹2,90,000 fund covers: Job loss (6 months), Medical emergency (₹1L), Car repair (₹50K), Home repair (₹40K).
About Emergency Funds
An emergency fund is cash savings for unexpected expenses or financial emergencies. It's your financial safety net that prevents debt when life surprises you.
Why You Need an Emergency Fund
Job Loss Protection
3-6 months expenses gives time to find new job
Prevents taking high-interest loans during unemployment
Medical Emergencies
Covers deductibles, treatments not covered by insurance
Average medical emergency in India: ₹50,000-₹5,00,000
Unexpected Repairs
Car breakdowns, home repairs, appliance replacements
Prevents using credit cards at 24-36% interest
Family Emergencies
Travel for family emergencies, sudden responsibilities
Peace of mind during stressful situations
Where to Keep Emergency Fund
Savings Account
- Liquidity: Immediate access
- Interest: 3-4% p.a.
- Risk: Very low (insured)
- Best For: First ₹1-2 lakh
Fixed Deposits
- Liquidity: 1-7 days
- Interest: 5-7% p.a.
- Risk: Very low
- Best For: Larger amounts
Liquid Funds
- Liquidity: 1-2 days
- Interest: 5-6% p.a.
- Risk: Low to moderate
- Best For: Experienced savers
Combination
- Liquidity: Tiered access
- Interest: 4-6% average
- Risk: Balanced
- Best For: Optimal strategy
Emergency Fund Guidelines
| Situation | Recommended Fund | Monthly Expenses | Target Amount | Priority |
|---|---|---|---|---|
| Single, Salaried | 3-6 months | ₹30,000 | ₹90,000-₹1,80,000 | High |
| Married, Dual Income | 3-6 months | ₹60,000 | ₹1,80,000-₹3,60,000 | High |
| Single Income Family | 6-9 months | ₹50,000 | ₹3,00,000-₹4,50,000 | Very High |
| Self-Employed | 6-12 months | ₹40,000 | ₹2,40,000-₹4,80,000 | Critical |
| Freelancer | 6-9 months | ₹35,000 | ₹2,10,000-₹3,15,000 | Critical |
Building Your Fund Fast
- Start Small: Begin with ₹10,000 goal, then build to 1 month, then 3 months
- Automate Savings: Set up auto-transfer of 10% salary to emergency fund
- Use Windfalls: Put bonuses, tax refunds, gifts into emergency fund
- Cut Expenses: Reduce dining out, subscriptions, save difference
- Sell Unused Items: Clear clutter, add proceeds to fund
- Side Income: Freelance, part-time work dedicated to fund
- Review Regularly: Adjust as income/expenses change