🚨 Emergency Fund & EMI

Emergency fund size and loan EMI math.

What it does

Computes the emergency fund you need for a job loss or surprise expense, and separately calculates the monthly EMI for a fixed-rate loan.

When to use it

Build the emergency fund before any investing; use the EMI side when comparing loan offers or checking affordability.

Assumptions
  • The emergency fund must cover a fixed number of months of expenses.
  • The EMI formula assumes a fixed rate with equal monthly installments.
Inputs
Emergency fund
Loan EMI
%
years
Pro tip

Keep the emergency fund in something liquid and safe — a savings account or short-term deposit — not in stocks. A 6-month target is the standard; aim for more if your income is irregular. For loans, a shorter tenure cuts total interest sharply.