Glossary

What Is Savings Runway?

How many months your savings would last if income stopped.

Definition

Savings runway is the number of months your current savings could cover your living expenses if primary income stopped. It is calculated by dividing total savings by monthly essential costs (minus any continuing income). A runway of 3–6 months is a common minimum recommendation.

Related calculators

Use these tools to work with savings runway in your planning.

Budget

Emergency Fund Calculator

Calculate how much emergency fund you need, how much you still need to save, and how long it will take to get there.

Open Emergency Fund Calculator
Budget

How Long Can I Live on My Savings

Calculate how many months your savings would last given your current monthly expenses and any expected income.

Open How Long Can I Live on My Savings
Budget

Job Loss Survival Calculator

Estimate how long your savings and severance could last if you lost your job, and what spending cuts would help most.

Open Job Loss Survival Calculator

Other glossary terms

Gross Salary

Your salary before taxes and deductions are removed.

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Net Salary

Your salary after all taxes and deductions are removed — the amount you actually receive.

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Income Tax

A tax paid on earned income, deducted from your salary or paid on profit.

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Social Security

Compulsory contributions paid by employees and employers to fund public welfare programmes.

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