Emergency Fund Runway Calculator

Most financial experts recommend keeping 3 to 6 months of essential living expenses in a highly liquid account (like a High-Yield Savings Account). However, if you are a freelancer, business owner, or work in an industry prone to long layoffs, 9 to 12 months may be more appropriate.

Yes, severance effectively extends your runway. A lump-sum severance payment acts as an immediate boost to your available cash, while continued salary payouts reduce your net monthly burn rate. Always calculate severance after estimating taxes.

COBRA allows you to stay on your former employer's health insurance, but you must pay the entire premium (both your share and the portion your employer previously covered) plus a 2% administrative fee. The average cost for an individual is around $600 to $800 per month, and family coverage can easily exceed $2,000 per month.