Finance question
How much emergency fund should I keep?
Last updated 2026-09-17
Quick answer
A common range is 3–6 months of essential expenses for dual-income salaried households, and 6–12 months for a single earner or commission-heavy income. On ₹40,000 essentials, that is ₹1.2–2.4 lakh at 6 months. Keep it in savings, sweep or a short FD you can break — not in an equity SIP.
Calculate your numbers
Tables below use stated assumptions. Change rate, tenure or income in the calculator for your case.
Open Fixed depositWhy not the SIP calculator
There is no separate emergency-fund product on this site because the maths is multiplication, not compounding. The FD and RD calculators are the right parking tools. Equity SIP is for goals you can delay.
Formula
Emergency fund ≈ monthly essentials × months of cover (often 3, 6 or 12).
Example scenarios
Six-month essential-expense fund
| Monthly essentials | 3 months | 6 months | 12 months |
|---|---|---|---|
| ₹20,000 | ₹60,000 | ₹1,20,000 | ₹2,40,000 |
| ₹30,000 | ₹90,000 | ₹1,80,000 | ₹3,60,000 |
| ₹40,000 | ₹1,20,000 | ₹2,40,000 | ₹4,80,000 |
| ₹50,000 | ₹1,50,000 | ₹3,00,000 | ₹6,00,000 |
| ₹75,000 | ₹2,25,000 | ₹4,50,000 | ₹9,00,000 |
| ₹1,00,000 | ₹3,00,000 | ₹6,00,000 | ₹12,00,000 |
| ₹1,50,000 | ₹4,50,000 | ₹9,00,000 | ₹18,00,000 |
What changes the answer
- Job stability
- Number of earners
- Health cover quality
- Whether you have a large EMI
Things to consider
- Count only essentials (rent, food, EMI, school, insurance) — not discretionary shopping.
- Month counts are heuristics, not an RBI rule.
Results are educational estimates, not tax, legal, investment, or medical advice, and not a loan offer. Verify filings and payments with the official authority or a qualified professional.
FAQs
PPF has lock-in. Use it for long saving, not next month’s hospital bill.