Thinking about quitting your job to pursue your dreams, start a business, or simply take a break? Before you submit that resignation letter, you need to know one critical number: your financial runway. Our “Should I Quit My Job” calculator helps you make this life-changing decision with confidence by analyzing your finances objectively.

Calculate Your Financial Runway Now

What is Financial Runway?

Financial runway is the amount of time you can survive without employment income based on your current savings and expenses. It’s like the runway an airplane needs to take off – too short, and you crash before getting airborne. Too long, and you’re being overly cautious and might miss opportunities.

The concept is simple: Runway (in months) = Total Savings ÷ Monthly Expenses

But reality is more complex. Our calculator factors in:

• Emergency fund buffer (the money you should NEVER touch)
• Side income or passive income streams
• Health insurance and other safety nets
• Burn rate (actual monthly cash outflow)
• Risk assessment based on your specific situation

The Real Cost of Quitting Your Job

Most people only think about lost salary when considering quitting. But the true costs include:

Direct Financial Costs

1. Lost Salary: Your monthly paycheck × months unemployed
2. Lost Benefits: Health insurance (₹5,000-15,000/month), provident fund contributions, bonuses
3. Lost Retirement Contributions: Both your and employer’s PF/NPS contributions
4. Higher Healthcare Costs: Individual health insurance costs 2-3x corporate plans
5. Emergency Expenses: Murphy’s Law says something will break when you can’t afford it

Hidden Opportunity Costs

1. Career Growth: Promotions and raises you would have received
2. Skill Development: Training and experience gained on the job
3. Professional Network: Connections and relationships that accelerate careers
4. Investment Losses: Money not invested compounds over time

Understanding Your Risk Score

Our calculator provides a risk score from 0-100, where:

• 0-20 (Low Risk): You have 12+ months of safe runway. Quitting is financially viable if you have a plan.
• 21-40 (Moderate Risk): You have 6-12 months runway. Proceed with caution and have backup plans.
• 41-60 (High Risk): You have 3-6 months runway. Only quit if you have concrete opportunities lined up.
• 61-100 (Very High Risk): Less than 3 months runway. Do NOT quit unless you have another job confirmed.

When Should You Actually Quit?

Green Light Scenarios (Okay to Quit)

• You have 12+ months of safe runway (after emergency fund)
• You have another job offer in hand
• Your side business is already generating significant income
• Your health or safety is at serious risk in current job
• You’ve been laid off (not really your choice, but prepare accordingly)

Yellow Light Scenarios (Proceed with Caution)

• You have 6-9 months safe runway with a solid plan
• You’re transitioning to freelancing with some clients lined up
• Starting a business with low capital requirements
• Taking time off for education that clearly advances career

Red Light Scenarios (Don’t Quit Yet)

• Less than 6 months runway with no concrete plan
• Quitting “to find yourself” without financial preparation
• Starting a business that requires significant capital you don’t have
• No emergency fund in place
• High debt obligations (home loan, car loan, personal loans)
• Dependents relying on your income without backup plans

Real Stories: Quit Job Success and Failures

Success Story: The Planned Exit

Priya, 32, Software Engineer → Startup Founder

Priya wanted to start her SaaS company but did it right. She spent 2 years:

• Building the product on weekends (validated market demand)
• Saving 18 months of expenses (₹15 lakhs)
• Getting 10 paying customers before quitting
• Negotiating part-time consulting (₹50k/month) with former employer

Result: Her startup is now profitable with 200+ customers. The safety net meant she could focus on growth without panic.

Failure Story: The Impulsive Decision

Rahul, 28, Marketing Manager → “Finding Himself”

Rahul quit his ₹80k/month job because he was “burned out” with only ₹2 lakhs saved and monthly expenses of ₹45k (just 4.4 months runway). He planned to “figure things out.”

Reality Check:

• Month 1-2: Relaxed, traveled, felt free
• Month 3: Anxiety kicked in as savings depleted
• Month 4: Desperately applied to jobs, had to accept ₹60k offer (₹20k less than before)
• Took 18 months to get back to ₹80k level
• Lost ₹5+ lakhs in lifetime earnings

The Smart Way to Quit Your Job

Step 1: Build Your Runway (6-12 Months Before)

1. Calculate exact monthly expenses (use real numbers, not estimates)
2. Build emergency fund: 6 months expenses minimum
3. Save additional 6-12 months as “quit fund”
4. Pay off high-interest debt
5. Get comprehensive health insurance

Step 2: Reduce Financial Obligations (3-6 Months Before)

1. Cut unnecessary subscriptions
2. Renegotiate rent or consider cheaper accommodation
3. Sell unused items for extra cash
4. Build a lean budget for post-quit life

Step 3: Create Safety Nets (3 Months Before)

1. Build side income streams (freelancing, consulting)
2. Line up potential clients or projects
3. Network with industry contacts
4. Update resume and LinkedIn
5. Research backup job opportunities

Step 4: Professional Exit (1 Month Before)

1. Give proper notice (2 weeks minimum, 1 month ideal)
2. Document your work thoroughly
3. Maintain positive relationships
4. Get written recommendations
5. Understand your final pay, PF withdrawal, gratuity

Frequently Asked Questions

How much runway do I need to quit safely?

Minimum 6 months of safe runway (after emergency fund). Ideal is 12+ months. However, if you have concrete opportunities or income sources lined up, 6 months can work.

Should I quit without another job?

Only if: (1) You have 12+ months runway, (2) You have a solid business plan or skill to monetize, or (3) Your current job is severely damaging your health. Otherwise, find new employment first.

What if I have a home loan?

Home loans significantly increase your financial obligations. You need a larger runway – ideally 18-24 months of expenses including EMI. Consider renting out property or getting a co-applicant before quitting.

Can I rely on my spouse’s income?

Yes, dual-income households have more flexibility. However, budget conservatively – assume only 70-80% of spouse income is usable (account for their own career uncertainties).

Related Tools

• Emergency Fund Calculator – Build your safety net first
• FIRE Calculator – See if you can retire early instead
• Side Hustle ROI Calculator – Evaluate business ideas before quitting

Conclusion

Quitting your job can be liberating or disastrous – the difference lies in preparation. Use our calculator to get an objective assessment of your financial readiness. Remember: the goal isn’t to talk you out of quitting, but to ensure when you do quit, you do it from a position of strength, not desperation.

Take the time to build your runway properly. Your future self will thank you.