What is the paycheck runway calculator?
In short
Your paycheck runway is how many months your savings can cover expenses if your income stopped today. Calculate it as: (savings − minimum balance) ÷ monthly burn, where monthly burn = expenses − passive income. A $30,000 savings account with $4,000/month expenses and no passive income gives 7.5 months of runway.
This paycheck runway calculator tells you how long your savings last without income, the exact date you'd run out, your monthly burn rate, and how much you can safely spend above your target minimum balance.
How to use this calculator
- 1Enter your current liquid savings.
- 2Enter your total monthly expenses.
- 3Enter any monthly passive income (dividends, rental income, side business).
- 4Set a target minimum balance you want to keep as a floor.
- 5Read your runway in months and the date your savings would be exhausted.
The formula
- burn
- — Net monthly cash outflow (expenses − passive income)
- savings
- — Total liquid savings
- min
- — Target minimum balance to keep as a floor
Worked example
The scenario
$30,000 savings, $4,000/month expenses, $500 passive income, $1,000 minimum balance.
The result
Monthly burn = $4,000 − $500 = $3,500. Safe to spend = $30,000 − $1,000 = $29,000. Runway = $29,000 ÷ $3,500 = 8.3 months (rounds to 8 full months).
Common use cases
- Planning how long you could survive a job loss
- Deciding whether to quit a job before finding another
- Setting a minimum savings target before making a career change
- Understanding the impact of passive income on financial security
Limitations & assumptions
- Does not account for interest earned on the savings balance.
- Assumes fixed monthly expenses — real expenses may vary.
- Does not model unemployment benefits, severance, or other income sources.
- The 'minimum balance' is a user-defined floor, not a regulatory requirement.
Frequently asked questions
Disclaimer: KalkWise calculators are provided for general informational and educational purposes only and do not constitute financial, investment, tax, or legal advice. Results are estimates based on the figures you enter and the assumptions described above. Actual outcomes will vary. Consult a qualified professional before making financial decisions.