Goal Studio · Emergency fund
Build the fund that protects every other plan
An emergency fund is measured in months of essential expenses. Choose how many months you want covered and how soon you want to get there.
- Inflation
- 6%
- Assumed return
- 7%
Starting assumptions — hypothetical and editable below.
Your plan
Illustrative investment needed
₹21,244a month
To have ₹3.18 L in 2027 (₹3 L in today’s money), invest about ₹21,244 a month, at an assumed 7% a year.
- Cost in 2027
- ₹3.18 L
- ₹3 L in today’s money, at 6% inflation
- What you have could grow to
- ₹53,500
- ₹50,000 today, at 7% a year
- Funding gap
- ₹2.65 L
- Future cost minus what you have could grow to
- You would invest in total
- ₹2.55 L
- New contributions over 1 year
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This is an illustration, not a forecast or a promise. It is based on the assumptions shown, which are hypothetical and yours to edit. Actual returns may differ, sometimes significantly, and market-linked investments involve risk, including the possible loss of capital. Taxes, costs and inflation can change the outcome.
Assumptions behind these numbers
Default assumptions are hypothetical round numbers chosen for illustration. They are not forecasts and not a view on any product. Change them to see how sensitive the result is.
- Essential expenses per month
- ₹50,000
- Months of cover
- 6 months
- Emergency fund, in today’s money
- ₹3,00,000
- Years to goal
- 1 year
- Inflation for this goal (annual)
- 6%
- Already invested
- ₹50,000
- Assumed annual return (illustrative)
- 7%
- Contribution frequency
- Monthly
How it is calculated
- Inflation is an effective annual rate. Value in today’s money = future amount ÷ (1 + inflation)^years.
- The annual return is an effective annual (compound) rate; the periodic rate is (1 + annual rate)^(1/periods) − 1.
- Contributions are assumed at the start of each period.
- These figures are illustrations based on hypothetical assumptions, not forecasts. Actual returns may differ, and market-linked investments involve risk.
Formula set v1.0.0
What to consider
Before you settle on a emergency fund number
Months of essential expenses
Three to six months is a common starting point. Single-income households, variable income or dependants often justify more.
Essential, not total, spending
Count rent or EMIs, groceries, utilities, insurance premiums and school fees — what must be paid even in a difficult month.
Reachable within days
The point is access. Money you may need at short notice usually sits in liquid, lower-volatility places, accepting a lower return for that.
Refill after use
Using the fund is what it is for. Plan to rebuild it before restarting longer-term goals.
Explore
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Tools
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Academy
Read before you decide
Goal Studio
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