How to calculate your financial runway after a layoff

Start with available money

Add the money you can realistically use:

• savings
• confirmed severance
• confirmed payout items
• reliable side income

Avoid including uncertain amounts unless you are clearly treating them as a separate scenario.

Then estimate your monthly burn

Your burn rate should focus on what continues whether you feel ready or not:

• rent
• EMI
• essentials
• insurance
• family support commitments

This is a planning number, not a moral judgment about spending.

Use scenarios, not one answer

It helps to calculate:

• current spending runway
• reduced spending runway
• no-severance runway

That gives you a more realistic sense of choice and urgency.