Layoff Runway Calculator
Work out how many months your savings, severance, and unemployment benefits will cover after a job loss.
Your details
Severance & benefits
Costs
This calculator runs entirely on your device. Nothing you enter is uploaded, stored, or sold. How this works
Financial runway
12.3 months
15.0 months if you cut expenses by 20% — savings alone would last 7.6 months
Includes your inputs, the full breakdown, and every row of the table.
Total resources
$73,033
After tax
Monthly burn
$5,920
Including $720 health coverage
Severance (net)
$13,846
8 weeks
Unemployment (net)
$10,725
26 weeks at $550
- Liquid savings
- $45,000
- Severance (8 weeks gross $18,462)
- $13,846
- PTO payout (80 hrs gross $4,615)
- $3,462
- Unemployment benefits (gross $14,300)
- $10,725
- Total available
- $73,033
- Monthly expenses
- $5,200
- Health coverage
- $720
- Total monthly burn
- $5,920
- Runway
- 12.3 months
- Runway on a reduced budget
- 15.0 months
| Month | Benefits received | Expenses | Balance remaining |
|---|---|---|---|
| Month 1 | $1,787 | $5,920 | $58,175 |
| Month 2 | $1,787 | $5,920 | $54,042 |
| Month 3 | $1,787 | $5,920 | $49,910 |
| Month 4 | $1,787 | $5,920 | $45,777 |
| Month 5 | $1,787 | $5,920 | $41,645 |
| Month 6 | $1,787 | $5,920 | $37,512 |
| Month 7 | $1 | $5,920 | $31,593 |
| Month 8 | $0 | $5,920 | $25,673 |
What this means
- Nine months or more of runway is a strong position. You can afford to be selective rather than taking the first offer.
- Severance may delay unemployment eligibility in some states, and lump-sum versus salary-continuation payments are treated differently. File your claim immediately regardless and let the agency determine the start date.
- COBRA is expensive because you pay the full premium plus an administrative fee. A marketplace plan is usually cheaper, and job loss is a qualifying event that opens a special enrollment period.
How the layoff runway calculation works
Runway is total available resources divided by monthly burn. The resources side includes more than savings: severance, a PTO payout, and unemployment benefits all extend the timeline, though all three are taxable and should be counted net.
The burn side almost always goes up after a layoff, because employer-subsidised health coverage ends. COBRA typically costs several hundred to over a thousand dollars a month for a family, which is why the calculation adds it explicitly rather than assuming expenses stay flat.
Frequently asked questions
How many months of expenses should I have saved?
Three to six months is the standard guidance, six to twelve if your income is variable or your industry hires slowly. Senior and specialised roles typically take longer to replace.
Is severance taxed?
Yes. It is wage income subject to federal, state, and FICA taxes. Lump-sum payments are often withheld at the 22% supplemental rate, which may be more or less than you ultimately owe.
Related calculators
Take-Home Pay Calculator
Estimate net pay per paycheck after federal tax, FICA, state tax, retirement contributions, and benefit deductions.
SalaryPTO & Vacation Accrual Calculator
Track paid time off accrual per pay period, project your balance, and value your unused days in dollars.
SalaryFIRE Calculator
Find your financial independence number and the year you can retire early, based on savings rate and spending.
RetirementCost of Living Comparison Calculator
Compare two cities by cost index and find the salary you need to maintain the same standard of living.
SalarySpotted a problem, or want this calculator to do more?Corrections are fixed first, and the most-requested features get built next.Tell us →
Disclaimer. This calculator is provided for general information and educational purposes only and does not constitute financial, tax, legal, medical, or engineering advice. Results are estimates based on the inputs you provide and the assumptions described above. Confirm any figure with a qualified professional before acting on it.