Calculate Your Emergency Fund
Calculate optimal emergency fund based on expenses and risk factors
Financial Details
Enter your expenses and risk factors
About Emergency Fund Calculator
An emergency fund is money set aside to cover unexpected expenses like medical emergencies, job loss, or major repairs. This calculator helps you determine the optimal amount based on your expenses, employment type, and risk factors.
Key Guidelines
- Salaried employees: 3-6 months of expenses
- Self-employed: 6-12 months of expenses
- Add more for dependents and job instability
- Keep in liquid, low-risk instruments
Frequently Asked Questions
An emergency fund is money set aside to cover unexpected expenses like medical emergencies, job loss, or major repairs. It provides financial security and prevents debt during crises.
Emergency fund should cover 3-6 months of expenses for salaried employees, or 6-12 months for self-employed. Increase if you have dependents, unstable income, or high financial obligations.
Keep emergency fund in highly liquid, low-risk instruments like savings account, liquid mutual funds, or short-term FDs. Avoid equity or long-term investments that may not be accessible quickly.
Use emergency fund only for genuine emergencies: job loss, medical emergencies, major home/car repairs, or unexpected large expenses. Replenish it as soon as possible after use.