Emergency Fund Calculator
Know exactly how much cash you need in reserve — and how long it'll take to get there at your savings rate.
Why 6 Months Is the Sweet Spot
Three months covers most short shocks. Six months handles a realistic job-hunt cycle in India. Beyond nine months, you're over-insuring — that money earns more invested. Start with three, graduate to six as life gets more complex.
Frequently Asked Questions
How many months of expenses?
Three months is minimum. Six months is standard. Nine to twelve months if you're self-employed, have a single income, or work in volatile industries.
Where to park the emergency fund?
Liquid mutual funds or high-yield savings. Avoid locking it in FDs with penalties — the whole point is instant access in a crisis.
Should I invest this instead?
No. The emergency fund's job is stability, not returns. Investing it means you sell at a loss exactly when you need cash most (e.g. job loss in a recession).
Does health insurance reduce this need?
It reduces medical-crisis risk but doesn't replace the fund. Income loss, urgent travel, or uninsured emergencies still need liquid cash.