How do you use the emergency fund calculator?
- Enter what you must pay every month after moving in: living costs, the new home loan EMI, other EMIs and maintenance.
- Choose how many months you want covered and enter the savings you keep for emergencies only, not the money set aside for the down payment.
- Yearly insurance costs and the months over which you want to close any gap are under “Add insurance and a saving plan”.
Why does a home buyer need a bigger emergency fund?
Buying a home usually uses up most of your savings and adds a large EMI that must be paid even if your income stops. A job loss, a medical bill or a big repair can then push you into missing EMIs, which hurts your credit score and can lead the bank to act on the loan. An emergency fund buys time to sort things out.
There is no fixed rule for how many months to keep. A single income, a job in a volatile field or dependants at home are reasons to keep more. Health insurance does not remove the need, but it keeps a hospital bill from emptying the fund.
How the fund is worked out
Living costs + home EMI + other EMIs + maintenance + insurance ÷ 12Must-pay costs × months to coverFund − emergency savings nowStill to save ÷ months to close the gapWorked example: ₹ 30,000 EMI, six months
₹ 60,000 of living costs, the ₹ 30,000 home EMI, ₹ 10,000 of other EMIs, ₹ 5,000 maintenance and ₹ 60,000 a year of insurance come to ₹ 1,10,000 a month. Six months is ₹ 6,60,000. With ₹ 1.5 lakh saved, ₹ 5,10,000 is left, or ₹ 42,500 a month over a year.
Worked example: before the EMI starts
Without any EMIs the same household needs ₹ 70,000 a month and ₹ 4,20,000 for six months. The new EMI adds ₹ 2,40,000 to the fund, so start building it before you buy.
Fund at different months of cover
| Months | Fund | Still to save | A month |
|---|---|---|---|
| 3 | ₹ 3,30,000 | ₹ 1,80,000 | ₹ 15,000 |
| 6 | ₹ 6,60,000 | ₹ 5,10,000 | ₹ 42,500 |
| 9 | ₹ 9,90,000 | ₹ 8,40,000 | ₹ 70,000 |
| 12 | ₹ 13,20,000 | ₹ 11,70,000 | ₹ 97,500 |
What should you keep in mind?
- Keep the fund where you can reach it in a day or two, such as a savings account or a sweep-in FD, not in shares or property.
- Do not count the down payment, registration money or interiors budget as emergency savings.
- Interest on the fund is taxable. Check with your Chartered Accountant.
Frequently asked questions
Related answers and guides
- Corpus Fund vs Maintenance Deposit
- Under-Construction Site Visit Checklist
- Questions for Couples Before Buying a Home: 25 to Discuss
- Buying a ₹2–5 Crore Home in Bengaluru: 20 Questions to Ask
Sources
- All amounts are your inputs; the defaults are examples. Months to cover is your choice, not a regulatory figure.
- No external rates are used on this page. Checked 19 Oct 2026.
Indicative only, not financial advice. Check tax on interest with your Chartered Accountant before choosing where to keep the fund.
Buying a home in Bengaluru? Talk to an acre&key advisor.