Emergency Fund Calculator

What is an emergency fund?

An emergency fund is liquid savings set aside for unexpected essential costs — job loss, medical bills, or urgent repairs — so you are less likely to rely on high-interest debt.

Formula

Recommended fund = Monthly essential expenses × Months desired
Coverage months = Existing savings ÷ Monthly expenses
Funding gap = max(0, Recommended fund − Existing savings)
Progress % = Existing savings ÷ Recommended fund × 100

Example

Expenses ₹40,000/month, 6 months desired → target ₹2,40,000. With ₹1,00,000 saved: coverage ≈ 2.5 months, gap ₹1,40,000, progress ≈ 41.7%.

FAQ

How many months should I save?

Many people plan for roughly 3–12 months of essentials depending on income stability and dependents. This tool does not prescribe a single answer.

What counts as essential expenses?

Typically rent/EMI housing needs, food, utilities, insurance, minimum debt payments, and other must-pay costs — not discretionary spending.