Emergency Fund Calculator

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Amount you should save every month:

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Savings Type

Amount

Daily Savings

₹500/day

Recommended

Weekly Savings

₹400/week

Monthly Savings

₹15000/month

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About Emergency Fund Calculator

An Emergency Fund Calculator helps you calculate how much money you should save every month to build a financial safety net within a specific time frame.

Instead of simple division, this calculator uses the sinking fund method, which considers interest and compounding, giving you a more realistic and efficient savings plan.

Whether you’re preparing for medical emergencies, job uncertainty, or unexpected expenses, this tool helps you plan your emergency savings clearly and accurately.

What Is an Emergency Fund?

An emergency fund is a dedicated pool of money set aside to handle unexpected financial situations without disrupting your regular finances.

Common emergencies include:

Medical expenses
Job loss or salary delays
Urgent home or vehicle repairs
Family or travel emergencies

Financial planners generally recommend keeping 3 to 6 months of essential expenses as an emergency fund. For freelancers or those with irregular income, this can extend to 9–12 months.

Key Elements of an Emergency Fund Plan

A well-structured emergency fund depends on four core elements:

Target Amount: The total amount you want to accumulate.
This is usually calculated as: Monthly expenses × Number of months of safety
Example:
₹40,000 × 6 months = ₹2,40,000
Time to Build the Fund: The number of months within which you want to be fully prepared.
Common timeframes are 12, 18, or 24 months.
Assumed Rate of Return: Emergency funds are usually kept in low-risk, liquid options, such as:
Savings accounts
Liquid mutual funds
Short-term fixed deposits

These typically earn modest but stable returns.
Monthly Contribution (PMT): This is the monthly amount you need to save, which your calculator computes based on the inputs above.

How to Calculate Emergency Fund Savings

This calculator uses the sinking fund formula, a standard financial method used to accumulate a fixed amount over time through regular contributions.

Formula (Investment at Beginning of Month)-

PMT = FV×r/((1+r)n−1)(1+r)

Formula (Investment at End of Month)-

PMT = FV×r/(1+r)n−1

This calculator uses the sinking fund formula, a standard financial method used to accumulate a fixed amount over time through regular contributions.

Where:

‍PMT = Monthly savings required
‍FV = Target emergency fund amount
‍r = Monthly rate of return (annual rate ÷ 12)
‍n = Number of months

Example Calculation

Goal: ₹3,00,000
Time: 12 months
Expected return: 6% per year

Monthly rate:
6%÷12=0.5%

Result:
You need to save approximately ₹24,232 per month to reach your emergency fund goal in one year.

When Should You Use an Emergency Fund Calculator?

You should use this calculator when:

You are starting your career
You are planning to live independently
You want to switch jobs or quit without stress
You are freelancing or starting a business
You are planning major life changes
You want financial stability and peace of mind

It helps convert an abstract goal into a clear monthly savings target.

Who Should Use This Calculator?

This emergency fund calculator is useful for:

Salaried Individuals

To plan monthly savings alongside regular expenses.

Freelancers and Self-Employed Professionals

To protect against income gaps or irregular cash flow.

Students and Fresh Graduates

To build a habit of saving early.

Families

To prepare for household or dependent-related emergencies.

Anyone Without Emergency Savings

To start building a financial safety net from scratch.