Layoff Survival Calculator
Calculate your financial runway and determine how long you can survive without a regular paycheck.
When to use this tool:
- Recession readiness
- Layoff preparation
- Emergency fund goal setting
How it's Calculated
- Total Monthly Burn = Basic Expenses + Debt Payments.
- Total Buffer = Savings + Severance + (Unemployment × 6).
- Runway = Total Buffer / Monthly Burn.
Key Assumptions
- Unemployment benefits are assumed to last for 6 months.
- Assumes no further reductions in expenses during the layoff period.
- Assumes immediate availability of liquid savings.
Actionable Insights
- High-interest debt is the biggest threat to your survival runway during a layoff.
- The first 30 days are critical for 'trimming the fat' from your monthly expenses to extend your buffer.
Frequently Asked Questions
A 'Low' risk level corresponds to having 12+ months of runway. 'Critical' is anything under 3 months.
Always use net (after-tax) severance, as that is the actual cash available to pay your bills.
Debts are fixed costs. Unlike food or subscriptions, they are harder to reduce, making them high-impact on your survival.
6 months is the standard duration in many jurisdictions. If yours differs, adjust the monthly amount to match your total expected benefit.
Liquid cash is usually more valuable than debt reduction during a layoff, as it provides flexibility for essential survival costs.
The calculator represents your 'worst-case' runway. Finding a job sooner shifts your status back to 'Career Choice' vs 'Survival'.