Emergency Fund Calculator — Your Sleep-Well Number

Before any SIP, any stock, any crypto - this buffer. Size it from your real monthly essentials, see how long it takes to build, and park it where it earns without locking.

₹

Rent/EMI, groceries, utilities, school fees, insurance premiums, minimum debt payments - not the fun stuff.

Mo
₹
₹
Your Emergency Fund Target
₹3.00 L
6 months of ₹50,000 essentials
Gap to Fill
₹2.00 L
you have 33% covered
Months to Full Cover
14
at ₹15,000/month
Priority Rank
#1
fund this before investing
Saved vs Gap
Where to Park It (suggested split)
LayerShareAmount

📌 Why This Comes Before Investing

Sizing It Right

Target = Monthly Essentials × Months of Cover

Worked Example

Essentials ₹50,000/month, cover 6 months, already saved ₹1,00,000, saving ₹15,000/month:

1. Target = 50,000 × 6 = ₹3,00,000
2. Gap = 3,00,000 − 1,00,000 = ₹2,00,000
3. Time = 2,00,000 / 15,000 ≈ 14 months to full cover

Where the Buffer Lives (and Where It Doesn't)

  • Month 1 of expenses: plain savings account - instant, no questions.
  • Months 2-3: auto-sweep FD - earns ~6-7%, breaks itself when your balance dips.
  • Months 4-6+: overnight/liquid funds - a day to redeem, a bit more return, near-zero volatility.
  • Never: stocks, equity funds, crypto, locked FDs, or your PPF. Emergencies do not wait for market recovery or lock-in expiry.
  • After you use it: refilling the buffer jumps back to priority #1, ahead of SIPs.

Emergency Fund FAQs

If you have under 3 months of cover, most planners say yes - pause or shrink SIPs and flood the buffer first. One job loss with no buffer forces you to sell investments at whatever the market is doing that week. Between 3 and 6 months, splitting savings between the buffer and SIPs is a reasonable middle path.

No. A credit card is a loan at 36-42% a year, and limits can be cut exactly when the economy - and your job - wobbles. It is a bridge of days, not a buffer of months. Real emergencies (job loss, medical) need cash you own.

That is not its job. The buffer's return is measured in nights slept, not percent. Sweep FDs and liquid funds dull inflation's edge while staying available; chasing higher returns with emergency money converts a safety tool into a risk asset. Revisit the target yearly - if your essentials rise 8%, so should the fund.