Emergency Fund Calculator
Build a Strong Emergency Fund for Peace of Mind
An emergency fund is your financial safety net for unexpected events like job loss, medical emergencies, or car repairs. Our Emergency Fund Calculator estimates the ideal fund size and monthly savings needed to build it, factoring in your expenses, desired coverage, existing savings, and investment returns. This tool helps you prepare for life’s uncertainties with confidence.
Start by entering your monthly expenses—rent, groceries, bills, etc., like ₹30,000 for a small family or ₹60,000 for a larger one. Choose a coverage period, typically 3-12 months, based on your job stability (e.g., 6 months for salaried, 12 for freelancers). Input existing savings, expected annual return (e.g., 6% for FDs or SIPs), and time to build the fund (1-5 years). The calculator shows the target fund and monthly savings required, guiding your plan.
Fund size and timeline matter. For example, ₹30,000 monthly expenses for 6 months need a ₹1.8 lakh fund. With no savings, saving ₹2,927 monthly at 6% return builds it in 5 years. With ₹50,000 existing savings, monthly savings drop to ₹2,070. Shorten to 3 years, and you need ₹4,892 monthly; extend coverage to 12 months (₹3.6 lakh fund), and it’s ₹5,854 monthly. Test scenarios to find your balance—perhaps ₹3,000 monthly for a 4-year goal.
Smart planning ensures accessibility and growth. Keep your fund in liquid assets like savings accounts, FDs, or liquid mutual funds for quick access. Start small—₹1,000 monthly at 6% grows to ₹1.45 lakh in 10 years, but only ₹0.67 lakh in 5 years. Automate savings via bank accounts or SIPs and cut non-essential expenses to boost contributions. Replenish the fund after use and adjust for lifestyle changes. This calculator helps you plan, but consult a financial advisor for investment choices or tax implications.
Your emergency fund is your financial shield. This calculator turns preparedness into a plan. As of April 2025, with rising costs and economic uncertainty, starting now is key. Input your details, adjust the variables, and build your safety net. Let this tool guide you toward financial security, ensuring every rupee saved protects your future.