What is an emergency fund?
An emergency fund is a readily accessible corpus set aside to cover unexpected expenses or income disruptions — job loss, medical emergencies, urgent home repairs, or any unplanned financial shock. It is not an investment; it is insurance against financial distress.
Financial planners universally recommend 3 to 6 months of essential living expenses as the baseline. For Indian households, this typically ranges from ’1.5 Lakh to ’10 Lakh depending on lifestyle and location. The fund should be held in instruments that offer instant liquidity with zero risk of capital loss.
How to use this calculator
Enter your monthly essential expenses, the number of months you want to be covered, and any existing emergency savings you already have. The calculator instantly shows your target fund size and whether you have a gap to fill or a surplus. The progress bar visualises how close you are to your goal.