How long will my money last after a layoff? A job-search runway calculator

How long will my savings last if I'm laid off?

Add up the money you can use: savings you're willing to draw on, severance after tax, and your weekly unemployment benefit times the weeks your state pays. Divide by your monthly gap: your monthly costs minus any income that continues, such as a partner's pay or a pension. That's your runway in months. With $30,000 of savings, $18,000 of severance after tax and 26 weeks of $550 benefits, against $6,500 a month of costs, the money lasts about 9.6 months.

Work out your own runway

How long the money lasts

Savings you'd use

$

Severance after tax

$

Weekly unemployment benefit

$

Weeks of benefits

Other monthly income

$

Monthly costs

$

Money available

$62,300

Monthly gap (costs minus other income)

$6,500

Runway

9.6 months

Educational estimate, not legal advice. Nothing you enter leaves this page.

The formula, so you can check it:

• Money available = savings + severance after tax + weekly benefit × weeks of benefits. In the example, $30,000 + $18,000 + $14,300 = $62,300.
• Monthly gap = monthly costs − other monthly income. $6,500 − $0 = $6,500.
• Runway = money available ÷ monthly gap. $62,300 ÷ $6,500 = 9.6 months.

Getting each number right

• Severance after tax. Employers usually withhold federal income tax at the 22% supplemental rate (37% on amounts over $1 million), plus Social Security, Medicare and state tax. Use the net figure on your pay stub, not the gross offer. See taxes on severance.
• Unemployment benefits. Your state agency gives the weekly amount and number of weeks when you file. Severance can delay or reduce benefits in some states; see unemployment and severance by state.
• Monthly costs. Include health coverage at its new price. COBRA usually costs far more than your payroll deduction did; see COBRA or Marketplace.
• Savings. Count what you'd actually use. Retirement accounts come with taxes and possible penalties; see your 401(k) after a layoff.

Why age changes the plan

Exhibit 1. Source: US Bureau of Labor Statistics, Worker Displacement: 2023-2025 (released August 27, 2026). Workers with 3+ years of tenure displaced January 2023 to December 2025.

Among workers with three or more years in a job who lost it between 2023 and 2025, 66.1% were working again by January 2026. The rate falls with age. A runway that would comfortably cover a search at 45 may be short at 60, and the answer to "how long will this take" changes what you do in the first month: cut costs early, file for benefits right away, and start the search before severance runs out. See the job search after 50.

Sources

1. US Bureau of Labor Statistics, Worker Displacement: 2023-2025, accessed Oct 30, 2026.
2. Internal Revenue Service, Publication 15 (2026), Employer's Tax Guide: supplemental wages, accessed Oct 30, 2026.