Can I Afford to Quit My Job?
Test whether savings, severance, and temporary income can cover a job search without consuming your protected emergency reserve.
Resources
Count only liquid, dependable resources.
Unemployment plan
Use a conservative search duration and full health-coverage cost.
About the Can I Afford to Quit My Job?
Resigning without a new offer lined up is one of the highest-stakes financial decisions most people make, and the math differs from a planned career break because there's no advance notice to build extra savings. This calculator answers a narrow, practical question: do your liquid savings and any severance cover a realistic job-search period, ongoing living costs, health coverage, and one-time transition expenses, while leaving your emergency reserve untouched? It's built for anyone actively considering resignation — whether the reason is burnout, a difficult workplace, relocation, or simply wanting time before the next role — and it deliberately keeps the emergency fund separate from search-funding math so a slower job market doesn't leave you exposed. Run it with a conservative search-length estimate first, then test a longer one to see how much real cushion your plan has.
How this calculator works
The exact model, assumptions, and limitations used for this decision.
Required resources = net monthly burn × expected job-search months + transition costs + protected reserve. Available resources = liquid savings + after-tax severance.
Calculation steps
- Net burn adds core spending and health coverage, then subtracts dependable temporary income.
- The full search period and one-time transition costs are funded before the protected reserve.
- Runway divides spendable resources by monthly burn and never counts the protected reserve as planned spending.
Important assumptions
- Severance and temporary income are entered after tax and are reasonably certain.
- No investment return is assumed on savings.
- Unemployment benefits are included only if entered as temporary income.
Frequently asked questions
Common questions about inputs, assumptions, and interpreting the result.
01How many job-search months should I enter?+
Use a conservative estimate based on your occupation, seniority, location, and hiring market. Test a longer scenario than your optimistic expectation.
02Should unemployment benefits be counted?+
Include only an after-tax amount you reasonably expect to qualify for, and only for eligible months. State rules, waiting periods, severance, and voluntary resignation can affect eligibility.
03How should I estimate health coverage?+
Compare COBRA, a spouse's plan, and Marketplace coverage, including premiums and expected out-of-pocket costs. Verify subsidy eligibility before relying on it.
04Do retirement accounts count as savings?+
Generally exclude accounts that would trigger tax, penalties, or serious long-term harm when withdrawn. Use genuinely liquid resources.
05What is different from the career-break calculator?+
This tool focuses on immediate resignation and re-employment risk. The career-break tool separately models an intentional break followed by a job-search buffer.
06What if temporary income exceeds expenses?+
Monthly burn becomes zero, but transition costs and the protected reserve remain required. Stress-test the plan if that income is uncertain.
07How does severance affect the calculation?+
Enter severance as an after-tax lump sum added to available resources. If it's paid over time rather than as a lump sum, treat it as temporary income instead so it reduces monthly burn rather than inflating available savings.
08Should I include a signing bonus from my next job?+
Only if you have a confirmed offer. Modeling a hypothetical future paycheck defeats the purpose of stress-testing a resignation before you have another income source lined up.