What is the right monthly savings rate?

A common rule is to save at least 20% of your take-home income (the 50/30/20 rule: 50% needs, 30% wants, 20% savings). However, goal-based saving is more effective — calculate what each specific goal requires and work backwards to a monthly contribution.

SIP vs FD — which is better for short-term goals?

For goals under 3 years, FD or liquid/debt mutual funds are safer as equity markets can be volatile over short periods. For goals 3–7 years away, balanced or hybrid funds work well. For goals 7+ years away, equity SIPs historically give the best returns (10–15% p.a.) and are recommended.

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Savings Goal & Emergency Fund Planner

Set a financial goal (vacation, down-payment, car), find out how much to save monthly, and see whether SIP, FD, or savings account is right for your timeline and risk tolerance.

Goal Name

Target Amount (₹)

Timeline (Months)

1 mo30 yr

Already Saved (₹)

Risk Tolerance

—

Monthly Needed

—

Est. Corpus

—

Est. Returns

Current Progress0%

Year	Invested	Corpus	Returns

ℹ️ How it works

Pick a preset goal or enter your own target amount and timeline
Select your risk tolerance — the tool recommends the best instrument
See the monthly contribution needed and projected corpus year by year
For emergency fund, switch tabs and calculate how many months you need and how long it'll take

Returns use compound interest with monthly contributions (future value of annuity formula).

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Frequently Asked Questions

Financial experts recommend 3 months of expenses for people with stable jobs and no dependents, and 6 months for freelancers, single-income families, or those with health concerns. Keep the emergency fund in liquid instruments — not locked in equity or PPF.

A common rule is to save at least 20% of your take-home income (the 50/30/20 rule). However, goal-based saving is more effective — calculate what each goal requires and work backwards to a monthly contribution using this planner.

For goals under 3 years, FD or liquid/debt mutual funds are safer as equity markets can be volatile. For goals 3–7 years away, balanced or hybrid funds work well. For goals 7+ years away, equity SIPs historically give the best returns (10–15% p.a.).

Compounding means earning returns on previously earned returns. Starting early is the most powerful factor — ₹5,000/month for 20 years at 10% grows to ₹38 lakh, while the same amount for 30 years grows to ₹1.1 crore. The last 10 years add nearly 3x the amount of the first 20.

PPF currently earns 7.1% p.a. compounded annually, tax-free. The 15-year lock-in makes it unsuitable for short-term goals, but it is ideal for long-term wealth creation with EEE (Exempt-Exempt-Exempt) tax status.

Savings Goal & Emergency Fund Planner

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