Emergency Fund
Emergency fund calculator for salaried professionals
Estimate how much cash buffer you need and how much to save monthly to build it.
Calculator
How much emergency fund do you need?
Formula
Cash buffer before aggressive goals
An emergency fund protects your goals from job loss, medical events, or sudden family expenses.
Emergency fund = (Expenses + EMIs) x target months
FAQ
How much emergency fund should a salaried person keep?
Most salaried people should keep 6 to 12 months of essential expenses, depending on job stability, dependents, loans, and medical risk.
Should emergency fund be based on salary or monthly expenses?
It should be based on essential monthly expenses, not full salary. Include rent, EMIs, groceries, utilities, insurance, school fees, and basic transport.
Is 3 months of emergency fund enough?
Three months may be enough for a very stable job with no dependents or loans, but 6 months is safer for most salaried households.
Where should I keep my emergency fund?
Keep it in liquid and low-risk options such as a savings account, sweep-in FD, liquid fund, or short-term fixed deposit.
Should I invest my emergency fund in equity or mutual funds?
Avoid equity or volatile funds for emergency money. The goal is safety and quick access, not high returns.
Should I build an emergency fund before investing?
Yes. Build at least a basic emergency fund before aggressive investing, because emergencies can force you to redeem investments at a bad time.
How do EMIs affect emergency fund planning?
EMIs increase your fixed monthly obligation, so they should be included while calculating the emergency fund target.
How often should I review my emergency fund?
Review it every 6 to 12 months, or after major changes like salary increase, new loan, marriage, child expenses, rent change, or job switch.
Can credit cards replace an emergency fund?
No. Credit cards can help temporarily, but they are debt. An emergency fund gives you cash support without high interest pressure.
How long does it take to build an emergency fund?
It depends on your monthly surplus. For example, if your target is ₹3,00,000 and you save ₹25,000 per month, it will take about 12 months.