How Long Will My Money Last Without a Job? Free Calculator & Guide

Losing a job or planning a career transition? The first question on your mind is probably: "How long can I survive on my savings?" Let's break down exactly how to calculate your financial runway and plan accordingly.

What Is Financial Runway?

Your financial runway is the amount of time your current savings will last before you run out of money. Think of it like a plane's runway you need enough distance to take off safely.

The basic formula is simple:

Financial Runway Formula:

Runway = (Total Savings + Severance) ÷ (Monthly Expenses - Monthly Income)

Step-by-Step: Calculate Your Money Runway

Step 1: Add Up Your Available Cash

Savings accounts: Include all checking and savings
Emergency fund: That rainy day fund you've been building
Severance pay: If you're getting let go, calculate your severance
Tax refunds: Any expected money coming in

💡 Pro tip: Don't count retirement accounts (401k, IRA) unless you're truly desperate the penalties aren't worth it.

Step 2: Calculate Your Real Monthly Expenses

Be brutally honest here. Look at your last 3 months of credit card and bank statements:

Fixed costs: Rent/mortgage, insurance, car payment, subscriptions
Variable costs: Groceries, gas, utilities, entertainment
Debt payments: Credit cards, student loans, personal loans
Healthcare: Insurance premiums, prescriptions (if you lose employer coverage, add COBRA costs typically $600-$1,500/month)

Step 3: Count Any Continuing Income

Unemployment benefits: Typically 40-60% of your previous income (check your state's calculator)
Side income: Freelance work, rental income, investments
Partner's income: If you have a spouse/partner still working

Real-World Examples

Example 1: Sarah's Layoff Scenario

💰 Savings: $15,000
💼 Severance: $8,000 (2 months pay)
📊 Monthly expenses: $3,200
💵 Unemployment benefits: $1,400/month

Runway: ($15,000 + $8,000) ÷ ($3,200 - $1,400) = 12.8 months

Sarah has just over a year to find work that's a comfortable runway.

Example 2: Marcus's Career Change

💰 Savings: $8,000
💼 Severance: $0 (quitting voluntarily)
📊 Monthly expenses: $2,500
💵 Side income: $800/month (freelancing)

Runway: $8,000 ÷ ($2,500 - $800) = 4.7 months

Marcus has less than 5 months, he needs to either increase savings or boost side income before quitting.

How Much Runway Do You Need?

🔴

Under 6 Months: Danger Zone

Consider staying at your job longer or drastically cutting expenses. Job searches typically take 3-6 months.

🟡

6-12 Months: Caution

You have breathing room, but start your job search immediately. Cut discretionary spending now.

🟢

Over 12 Months: Safe

You can be selective with job opportunities and even consider career pivots or additional training.

What-If Scenarios: Plan for Best & Worst Cases

Smart financial planning means modeling multiple scenarios:

Optimistic scenario: You find a job in 3 months with side income
Realistic scenario: 6-month job search with normal spending
Pessimistic scenario: 9-month search, reduced income, unexpected medical costs

Try QuitRunway's free calculator to compare up to 3 scenarios side-by-side. See how cutting expenses by 20% or adding $500/month in freelance income extends your runway. Calculate your runway now →

5 Ways to Extend Your Runway

Cut the Big Three: Downsize housing, sell a car, cancel subscriptions you don't use. Small wins don't compare to cutting $500-$1,000/month from major expenses.
Stack unemployment + side income: In most states, you can earn ~$200-$300/week in side income while still collecting unemployment benefits.
Negotiate COBRA alternatives: COBRA is expensive. Check Healthcare.gov marketplace plans you might qualify for subsidies if your income dropped.
Delay big purchases: That new laptop or vacation can wait. Every dollar saved extends your runway.
Freelance strategically: Even $500-$1,000/month in side income can double your runway if your expenses are low.

The Bottom Line

Knowing exactly how long your money will last removes the anxiety of "what if?" planning. Whether you have 4 months or 14 months, having a clear number lets you make rational decisions instead of panicking.

Ready to Calculate Your Runway?

Use our free calculator to see exactly how long your savings will last. Compare multiple scenarios and plan with confidence.

Calculate My Runway (Free) →

Frequently Asked Questions

Should I include my 401(k) in my runway calculation?

Generally, no. Early withdrawals come with 10% penalties plus income taxes (so you lose ~30-40% of the value). Only consider this if you've exhausted all other options.

What if I can't afford COBRA health insurance?

Check Healthcare.gov immediately if your income dropped due to job loss, you likely qualify for subsidized marketplace plans that cost much less than COBRA (sometimes $0-$100/month vs $600-$1,500).

How long does the average job search take?

As of 2026, the average job search takes 3-6 months for most fields. Senior positions and career changers should plan for 6-12 months.

Can I collect unemployment if I quit my job?

Usually not, unless you quit for "good cause" (unsafe working conditions, harassment, major pay cut). If you're laid off or terminated without cause, you qualify. Check your state's unemployment office for specifics.