Financial Planning
· Last reviewed July 2026Emergency Fund Calculator
Calculate the right emergency fund size for your situation in India. Based on job stability, monthly expenses, and dependents — find your coverage gap and time to fully fund it.
Recommended Emergency Fund
₹3.6 Lac
6 months of expenses
Current Coverage
1.7 months covered
Underfunded — build this up first
Shortfall
₹2.6 Lac
Months to Cover
26 mo
At ₹10K/mo
Get this calculated on your actual portfolio
Want to check if your liquid fund holdings can cover your emergency fund? Upload your CAS to FundSageAI — we separate liquid/overnight assets from equity automatically.
What is Emergency Fund Calculator?
An emergency fund is a dedicated, highly liquid pool of money set aside to cover unexpected financial shocks — job loss, medical emergency, urgent home repair, or car breakdown. Financial planners universally recommend having 3–6 months of living expenses in a liquid, accessible account before investing in equity mutual funds. In India, the best vehicles for an emergency fund are: liquid mutual funds (returns: 6–7%), overnight funds, or high-yield savings accounts. Unlike FD, liquid funds can be redeemed within 1 business day without penalty, making them ideal for emergency use.
How to use this tool
Enter your Monthly Expenses (rent, food, utilities, EMIs, insurance — all essential costs).
Select your Job Stability level — stable government/MNC: 3 months; private/mid-risk: 6 months; freelance/self-employed: 9 months.
Enter Current Liquid Savings (amount in savings accounts, liquid funds, FDs accessible without penalty).
Enter Monthly Savings Contribution toward building the fund — see time to reach your target.
The Formula
Recommended Fund = Monthly Expenses × Stability Months Shortfall = max(0, Recommended Fund - Current Savings) Months to Goal = ceil(Shortfall / Monthly Contribution) Coverage Months = Current Savings / Monthly Expenses
Key Terms
- Emergency Fund
- A dedicated pool of liquid savings for unexpected financial shocks — typically 3–6 months of living expenses held in liquid, accessible accounts.
- Liquid Fund
- A category of mutual fund that invests in money market instruments with maturity up to 91 days. Returns ~6–7%, with same-day or next-day redemption.
- Overnight Fund
- A mutual fund that invests in 1-day maturity instruments. Lowest risk category; slightly lower returns than liquid funds (~5.5–6%).
- Coverage Months
- The number of months your emergency fund can sustain your current living expenses if all income stops.
Key Benefits
- ✓Know exactly how many months your current savings can cover — shown as a clear progress gauge.
- ✓Customised recommendation based on your employment type (not a one-size-fits-all 3-month rule).
- ✓Calculates time to full coverage so you can plan a build-up timeline.
- ✓Helps prioritise: build emergency fund before investing in equity for long-term goals.
Practical Example
Monthly expenses: ₹60,000 Job stability: Private job (6 months) Current liquid savings: ₹1,00,000 Monthly contribution toward fund: ₹10,000 Recommended Fund: ₹3,60,000 Current coverage: 1.7 months (underfunded) Shortfall: ₹2,60,000 Time to fully fund: 26 months
FundSageAI Dashboard
Do more with your real portfolio data
- 1Liquid fund vs equity fund categorisation from CAS
- 2Emergency coverage months displayed in dashboard
- 3Alert if your liquid holdings drop below 3 months expenses
Related Reading
Common Questions
Frequently Asked Questions
You might also like
Free · No credit card · 2 min setup
These calculators use assumptions.
Your portfolio uses facts.
Upload your CAMS or KFintech CAS statement to get real XIRR, true corpus values, actual fund overlap, and personalised insights — all pre-filled with your data.