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Emergency Fund Calculator
How much to keep aside based on your commitments and how steady your income is.
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Result
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The emergency fund is the thing that stops a bad month from becoming a bad decade. It is also the least interesting part of a plan, which is why it gets skipped.
Sizing it
Count commitments, not lifestyle: rent, EMIs, groceries, utilities, school fees, insurance. Three months is enough for two steady incomes; six for a single salaried income; nine to twelve for commission, contract or business income.
Where to keep it
Split between a sweep-in savings account for same-day access and a liquid fund or short deposit for the rest. Returns are not the objective here — availability on the day you need it is.
What it is not
Not a substitute for health insurance; reimbursement claims still mean paying first. Not an investment. And once used, rebuild it before resuming investments — that order is what keeps it a fund rather than a memory.
Frequently asked questions
How many months of expenses should I keep?
Three for a household with two steady incomes, six for a single salaried income, and nine to twelve for commission, contract or business income. Count commitments — rent, EMIs, groceries, utilities, fees, insurance — rather than full lifestyle spending.
Where should I keep the emergency fund?
Split between a sweep-in savings account for same-day access and a liquid fund or short deposit for the remainder. Returns are not the objective; availability on the day you need it is.
Does health insurance replace an emergency fund?
No. Most claims are reimbursed after you pay, and cashless approval is not guaranteed. The fund covers the gap, the deductible, and everything insurance excludes.
Should I invest while building the fund?
Build the fund first, or at least in parallel. Starting a SIP with no buffer usually ends with the SIP being stopped at the worst possible moment to cover an emergency.