How Long Will My Savings Last After a Layoff?
The short version:
Add up everything you can access right now, divide it by what you actually spend each month, and that's roughly how many months of runway you have. The number usually surprises people -- in either direction.
The simple runway formula
(Savings + severance + other available resources) ÷ monthly expenses = months of runway.
It's a simple ratio, but most people never actually do the math -- they estimate, worry, or avoid looking at it entirely. Writing down the real numbers usually turns a vague sense of dread into a specific, workable number.
A worked example
Say you have:
- $20,000 in savings
- $12,000 in severance
- $7,500 in monthly expenses
That's about 4.3 months of runway. Reduce monthly expenses to $5,800, and the same resources stretch to 5.5 months -- real time bought back by one spending decision. (These are illustrative example numbers, not a guarantee -- your real runway depends entirely on your own numbers.)
What to count as available resources
- Savings and checking account balances you're willing to use
- Severance pay, if any
- Your final paycheck and any unused PTO payout
- Any tax refund you're expecting soon
- Unemployment benefits -- but estimate conservatively. Weekly amounts are capped, there's often a short waiting period before payments start, and eligibility rules vary by state
What most people leave out: retirement accounts. They're technically available, but withdrawing early usually means taxes and penalties -- worth treating as a last resort, not part of your everyday runway math.
What to count as monthly expenses
Start with your fixed costs (rent or mortgage, insurance, minimum debt payments, utilities), then add a realistic estimate of variable spending (groceries, gas, subscriptions, everything else). It's easy to underestimate the variable side -- a bank or card statement from the last month or two is usually more accurate than guessing.
Small changes buy real time
Because runway is a ratio, cutting spending has an outsized effect. Trimming a few hundred dollars a month from expenses doesn't just save that money -- it extends the entire runway calculation, every month, for as long as you hold the new number. That's usually a faster lever to pull than trying to find more income on short notice.
LayoffOS keeps your runway estimate, deadlines, benefits, and job search organized in one place.
This guide is educational and organizational information, not financial advice. See the full disclaimer.