What this planner works out
This planner works out your financial runway: how many months your savings and redundancy payment would cover if you were living on essential spending alone, allowing for any income you expect during a job search and the one-off costs of looking for work.
It gives you a number of months. Knowing that number early is what turns an open-ended worry into a decision you can plan around.
Runway estimate
Before you fill this in
- Use essential spending only — housing, utilities, food, transport, insurance, minimum debt repayments and childcare. Not your current total spending.
- Enter the redundancy payment after tax. Payments above £30,000 are generally taxable, as are notice pay and holiday pay.
- Include realistic income during the search: a partner's contribution to shared costs, any benefits you may be entitled to, or part-time and freelance work.
- Add one-off costs honestly — travel to interviews, clothing, professional subscriptions, training or certification renewals.
The practical value of knowing your runway is that it tells you how long you can afford to hold out for the right role rather than taking the first one offered. Three months of runway and nine months of runway lead to very different decisions about what you accept.
How this calculator works
Two figures, then a division:
Fund = savings + redundancy payment − one-off job search costs
Monthly burn = essential spending − income during search
Runway = fund ÷ monthly burnIf your income during the search covers your essential spending, the burn rate is zero and the planner reports that the runway is effectively open-ended.
The calculation assumes essential spending stays flat and that the fund is not earning meaningful interest. Both are reasonable simplifications over the few months this usually covers.
Worked example: £8,000 available
Using the default figures — £5,000 of savings, a £3,000 redundancy payment after tax, £1,800 of essential monthly spending, no income during the search and £200 of one-off costs:
- Fund: £5,000 + £3,000 − £200 = £7,800
- Monthly burn: £1,800 − £0 = £1,800
- Runway: £7,800 ÷ £1,800 = 4.3 months
Now try adding £600 a month of income — part-time work, or a partner covering a larger share of the bills. The burn falls to £1,200 and the runway extends to 6.5 months. Reducing the burn is far more powerful than increasing the fund, because it changes the divisor: an extra £600 of monthly income is worth more here than an extra £2,000 in the bank.
Common mistakes
- Using current spending rather than essential spending. This understates the runway and can prompt panicked decisions.
- Using the redundancy payment before tax. Anything above £30,000 is generally taxable, as is notice and holiday pay.
- Assuming no benefit entitlement. Many people are entitled to support they do not claim; check rather than assume.
- Leaving the emergency fund out of savings. This is precisely the situation it exists for.
- Waiting to cut spending until the money runs low. Reductions made early extend the runway far more than the same cuts made in month three.
Frequently asked questions
What benefits might I be entitled to?
Depending on your circumstances, savings and household income, you may be able to claim Universal Credit or New Style Jobseeker's Allowance, which is based on National Insurance contributions rather than savings. Council Tax Reduction and help with mortgage interest may also be available. Turn2us and Citizens Advice both run free benefit calculators, and it is worth checking early rather than assuming you will not qualify.
Should I use savings or claim benefits first?
Check your entitlement straight away, because some benefits are affected by savings levels and some are not. New Style Jobseeker's Allowance, for instance, is contribution-based and not means-tested against savings. Claiming what you are entitled to preserves your savings for longer, which extends the runway.
Should I keep paying into my pension?
It depends on how tight the runway is. Pension contributions are valuable but they are not essential spending, and pausing them is one of the least damaging temporary cuts available. If your runway is comfortable, continuing is usually worthwhile.
What should I do about debt repayments?
Keep making minimum payments if you can, and speak to lenders early if you cannot. Lenders are required to treat customers in financial difficulty fairly, and many will agree a temporary reduction or payment holiday — but only if you contact them before payments are missed. Free advice is available from StepChange, National Debtline and Citizens Advice.
Is what I enter here stored anywhere?
No. Your savings, redundancy payment and spending figures are processed entirely in your browser. Nothing is transmitted to me and nothing is retained.
Related tools
References
- GOV.UK — Universal Credit, New Style Jobseeker's Allowance and redundancy rights
- MoneyHelper — free guidance on managing money after redundancy and routes to debt advice
Sources are checked at publication and can change — how I choose and check references.