Emergency Fund Calculator
Calculate your emergency fund requirement and create a savings plan to build financial security for unexpected situations.
Emergency Fund Parameters
Recommended: 3-6 months for stable jobs, 6-12 months for variable income
Higher risk jobs may need larger emergency funds
Each dependent typically increases emergency fund needs by 12.5%
How many months do you want to take to build your complete emergency fund?
Monthly Essential Expenses
Enter your essential monthly expenses by category. Only include expenses you cannot eliminate in an emergency.
Understanding Emergency Funds
What is an Emergency Fund?
A reserve of money kept aside to cover unexpected events like job loss, medical emergencies, or urgent repairs. It provides financial security and helps avoid debt.
Why Emergency Funds Matter
- ✓ Provides financial stability during unexpected situations
- ✓ Helps avoid high-interest debt (credit cards, loans)
- ✓ Protects long-term investments from being liquidated
- ✓ Reduces stress and provides peace of mind
- ✓ Gives you freedom to make career changes safely
How Much Should You Save?
- Stable Employment: 3-6 months of essential expenses
- Variable Income: 6-9 months of essential expenses
- High Risk Jobs: 9-12 months of essential expenses
- Business Owners: 12-18 months of essential expenses
How to Build Your Emergency Fund
- Start Small: Begin with 1 month of expenses
- Automate Savings: Set up monthly transfers to a separate account
- Keep It Accessible: Use savings account, not long-term investments
- Build Gradually: Increase to 3-6 months over time
- Replenish When Used: Priority should be rebuilding the fund
What Counts as Essential Expenses?
✓ Include:
- • Rent/Mortgage
- • Utilities
- • Food & Groceries
- • Insurance Premiums
- • Loan EMIs
- • Basic Healthcare
✗ Exclude:
- • Entertainment
- • Dining Out
- • Vacations
- • Shopping
- • Subscriptions
- • Non-essential Items