Savings Runway Calculator

How this calculator works

Available savings = liquid savings − protected reserve. Monthly shortfall = expenses − reliable after-tax income. Runway = available savings ÷ positive shortfall. The result is approximate and assumes steady income and spending, no investment growth, and no inflation. A fractional month describes a portion of your typical monthly spending, not a guaranteed calendar date. If income covers expenses, this model does not deplete savings.

Reference: CFPB monthly budget worksheet.

Source review: October 2, 2026. Planning estimate; individual terms and rules may differ.

What savings runway means

Your savings runway is how many months your savings can cover the gap between what you spend and what still comes in. It is the number to know before leaving a job, taking unpaid leave, starting a business or going through a layoff. The calculator subtracts a protected reserve you never want to touch, divides the rest by your monthly shortfall and shows the months that leaves.

Worked example

With the example inputs, $15,000 of savings less a $3,000 protected reserve leaves $12,000 available. Monthly expenses of $3,000 against $500 of reliable income leave a $2,500 monthly gap, so the runway is 4.8 months.

Small changes move that number a lot. Raising reliable income to $1,500 a month, for example with part-time work or unemployment benefits, cuts the gap to $1,500 and stretches the same $12,000 to 8 months. This is how long $12,000 lasts at different monthly gaps:

Why keep a protected reserve

Spending savings to zero leaves nothing for a car repair or medical bill in the middle of a job search. The protected reserve is money the calculator does not count as available. A reserve of one month of essential costs, or your health insurance deductible, is a common choice. If you are leaving a job voluntarily, set the reserve higher, because finding work can take longer than planned.

Income that can extend your runway

• Unemployment insurance. If you lost your job through no fault of your own, your state unemployment program may replace part of your wages, usually for up to 26 weeks in most states and fewer in some. Benefits are taxable federal income, so consider having tax withheld. See our unemployment benefits tax guide.
• Severance and final pay. Severance is taxed as wages and is often withheld at the 22% federal supplemental rate; the severance pay tax calculator shows what you keep. Ask whether unused PTO is paid out.
• Part-time, freelance or gig work. Enter only income you can count on. Self-employment income also owes self-employment tax.
• A partner's income. Include it if household bills are shared.

Lowering the monthly gap

The gap shrinks fastest when you separate essential costs from flexible ones. Essential: housing, utilities, groceries, insurance, minimum debt payments and transport to interviews or work. Flexible: dining out, subscriptions, travel and extra debt payments. During a job search many people pause extra debt payments and retirement contributions, keep minimums current and contact lenders early about hardship options.

Health insurance is often the largest new cost after a layoff. COBRA lets you keep an employer plan but usually costs the full premium plus up to a 2% fee. Losing job-based coverage also opens a special enrollment period for Marketplace plans, which may be cheaper with premium tax credits based on your lower expected income.

How big should an emergency fund be?

A common target is three to six months of essential expenses, and more for single-income households, commission or seasonal workers and anyone in an industry with long hiring cycles. Use this calculator in reverse: if you want six months of runway with a $2,500 gap, you need $15,000 available plus your protected reserve. Our emergency fund calculator and emergency fund guide help you set a target and a monthly savings plan.

Limits of the estimate

The result assumes spending and income stay flat. In reality, the first month after a job loss often includes one-off costs, while spending tends to fall as you adjust. The calculator also ignores interest on savings and inflation, which matter little over a few months. Re-run it monthly with your real balance so the number stays current.

Runway at a glance

How many months different amounts of available savings last at three monthly gaps:

Halving the monthly gap doubles the runway, which is why trimming expenses and adding even modest income are as powerful as having more savings.

A 30-day plan after a job loss

1. Week 1: file for unemployment insurance in the state where you worked, since benefits usually start from the filing date. Ask about final pay, unused PTO and severance terms in writing.
2. Week 1: decide on health coverage. Compare COBRA with Marketplace plans within the special enrollment window.
3. Week 2: list every bill by due date, mark essential ones, and pause or cancel flexible spending and subscriptions.
4. Week 2: contact lenders before missing payments. Many offer hardship programs, deferments or reduced payments that are easier to arrange early.
5. Weeks 3 to 4: re-run this calculator with your real income and spending, then set a weekly job search and side-income plan to match the runway you have.

Planning a sabbatical, leave or new business

The same math works for planned breaks. Before unpaid parental leave, a sabbatical or launching a business, estimate the monthly gap including costs that change, such as health insurance you now pay yourself, and add a buffer for the time it takes to restart income. For a new business, many advisers suggest enough runway to cover at least six to twelve months of personal expenses, because revenue often takes longer to arrive than planned. Self-employment income owes both income tax and self-employment tax, so only count after-tax income when you enter it.

Essential and flexible expenses

Sorting your spending into two lists shows how far the gap could shrink if you needed it to:

Enter only essential costs in the monthly expenses field to see your minimum-spending runway, then enter your normal spending to see the comfortable version. The difference between the two tells you how much time cutting back would buy.

Unemployment benefits and taxes

Each state sets its own unemployment benefit amount, usually a share of your recent wages up to a weekly cap, and most pay for up to 26 weeks, with some paying fewer weeks when unemployment is low. Benefits count as taxable income on your federal return and in most states. You can ask for 10% federal withholding by filing Form W-4V with the state agency; otherwise set some money aside so the tax bill does not shorten your runway later. Severance pay, by contrast, is wages and has tax withheld like a regular paycheck.

Runway for couples and families

When two people share bills, the runway depends on the household gap, not one person's. If one partner keeps working, enter their take-home pay as reliable income; the shortfall is often far smaller than it looks at first. Agree in advance which accounts the runway draws from and what spending pauses first, and keep the protected reserve large enough to cover a month of child care or a medical deductible.

If your runway is shorter than you need

If the result is under three months, focus on the side of the equation you can move fastest. Expenses: housing is usually the biggest lever, so ask your landlord or lender about a temporary payment plan before you fall behind, and pause every flexible cost. Income: apply for unemployment benefits immediately if you qualify, and look for short-term or part-time work that does not stop your main job search. Savings: count only money you can reach without penalties; an early withdrawal from a 401(k) or IRA is usually taxed and, before age 59 1/2, often faces an extra 10% penalty, so treat retirement accounts as a last resort. Re-run the calculator after each change to see how many months you have gained.

Where to keep your runway money

Runway money should be safe and easy to reach. A high-yield savings account or money market account at an FDIC- or NCUA-insured institution keeps it liquid while earning interest. Avoid investing money you will need within a year in stocks, since a market drop could force you to sell at a loss. Read how a high-yield savings account works for what to look for.

Frequently asked questions

How many months of savings should I have?

Three to six months of essential expenses is the usual guide; aim higher if your income is irregular or your household relies on one earner.

Should I count unemployment benefits as income?

Yes, once they are approved, because they reduce your monthly gap. Remember they are taxable federal income and last a limited number of weeks.

What is a protected reserve?

Money you set aside and do not plan to spend, such as one month of bills or your insurance deductible, so you are never left with zero.

What if my income covers my expenses?

Then your savings are not being drawn down and the runway is unlimited; the calculator reports that your income covers the gap.

Does the calculator include interest on my savings?

No. Over a few months interest changes the result very little, so the estimate keeps it simple and slightly conservative.

Should I use retirement savings for my runway?

Only as a last resort. Early withdrawals are usually taxed and often face a 10% penalty before age 59 1/2, and they reduce your future retirement income.

How often should I recalculate my runway?

Monthly, or whenever your income or spending changes, using your actual savings balance at the time.

Is severance counted as savings or income?

If it arrives as a lump sum, add it to savings after tax. If it continues as regular pay, enter the after-tax amount as monthly income.

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