How to Calculate Your Severance Runway
The math is deliberately simple: add your post-tax severance to your liquid savings, then divide by your monthly net burn — spending minus any income still coming in (unemployment benefits, a partner's paycheck, freelance work). If that income meets or exceeds your essential spending, your runway is effectively indefinite: you can search without draining savings at all.
Run the calculation twice: once at your essential burn (housing, food, insurance, debt minimums) and once at your current lifestyle burn. The gap between those two numbers is the runway you can buy back with a single decision — usually one to three extra months, made in an afternoon of cancellations.
Why the Number Should Change Your Job Search Strategy
Here's where most runway calculators stop — and where the actual decision starts. Runway isn't just a survival metric; it's a strategy selector. Six-plus months of essential runway means you can afford to be selective: target the right role, negotiate from strength, and use the layoff to fix your career direction instead of just replacing your last paycheck. Three to six months calls for a structured, quota-driven pipeline with parallel tracks. Under three months, the playbook inverts: bridge income comes first, because covering rent with contract work decouples survival from the career decision — and stops you from panic-accepting a role you'll be re-searching your way out of in eighteen months.
The failure mode after a layoff is rarely the math. It's running a three-month playbook with nine months of runway (accepting too early, too cheap), or a nine-month playbook with three months of runway (browsing dream roles while the account drains). Match the mode to the months.
Whichever mode you're in, the search goes better when it's run as a system instead of a mood. Life Strategy OS gives you the weekly operating system to run that search deliberately — and if you saw the layoff coming and are weighing whether to jump first, start with the when-to-leave decision matrix.