Layoff Runway Calculator
How many months can you sustain your household after an IT layoff? Built for Indian tech professionals — factors in severance, EPFO 3.0 withdrawal, EMIs, and the real cost of losing group health cover.
Liquidity Expenses Your Runway
How many months of runway do you actually have?
A 2-minute calculation gives you the single most important number — before you make any other decision. Using EPFO 3.0 rules, real Pune/Bengaluru/Hyderabad cost benchmarks, and proper EPF tax treatment.
No sign-up required. All calculations run in your browser.
What you have available
Include savings accounts, liquid mutual funds, and FDs you can break within 7 days.
Use only the amount confirmed in writing, net of tax deduction. Don't include verbal HR assurances.
Your total EPF corpus. Find this on the UAN portal (epfindia.gov.in) or your latest passbook.
If you've changed employers and transferred your PF, count from the original contribution date. This affects whether your withdrawal is taxable.
Money genuinely accessible within 30 days: gift money, parental support, etc.
What you spend each month — essentials only
Your current EMI. If your spouse is a co-applicant and continues to work, enter only your share.
Combined monthly EMI across all other loans.
Annual premium ÷ 12. Include life, motor, and any others. Leave health insurance — that's handled separately below.
Annual fees ÷ 12. Include tuition, transport, and lunch.
Realistic monthly figure for essentials. Benchmark for Pune/Bengaluru/Hyderabad tech household: ₹35,000.
Buffer for medications, doctor visits, dental. Default: ₹10,000.
Subscriptions, eating out, and discretionary services after cutting non-essentials. Default: ₹20,000.
Optional details for a more accurate result
If you only have group health cover (no individual policy), the calculator adds an estimated replacement premium to your monthly burn — because your employer cover ends with employment.
Your realistic estimate based on current market. Used to calibrate the risk band — if your runway is shorter than this, the risk level is upgraded.
1 month18 months
Your estimated runway
— months How the number breaks down
Three things to do this week
Assumptions and simplifications:
- EPFO 3.0: 75% of your total EPF balance is accessible after 1 month of continuous unemployment. The remaining 25% is available after 12 months.
- EPF tax (under 5 years service): A flat 25% reduction is applied to reflect approximate TDS + income slab impact. Actual tax depends on your total income and slab.
- Health insurance uplift: Estimated individual policy premium added if you have group health cover but no individual policy. Market-rate estimate only — actual depends on insurer, sum insured, age, and city.
- Default expense figures: Utilities ₹35,000 · Medical ₹10,000 · Lifestyle ₹20,000/month. These are benchmarks for a mid-income tech-sector household in Pune, Bengaluru, or Hyderabad. Adjust to your actual costs.
- No investment returns credited: The model does not add returns on liquid funds or debt funds during the runway period. This is conservative by design — don't rely on market performance to extend your runway.
- Spouse income: Assumed stable. If the spouse's income is also at risk, remove it from the calculation.
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About the Layoff Runway Calculator
75%
EPF accessible under EPFO 3.0 after 1 month of unemployment
5 yrs
Continuous service threshold for tax-free EPF withdrawal
45 days
IRDAI health insurance porting window from last working day
5 bands
Risk classification from Critical to Strong, calibrated to your job search timeline
This calculator is designed for Indian IT professionals facing layoff. Unlike generic emergency fund calculators, it models the inputs that actually matter: severance (net of TDS), EPFO 3.0 unemployment withdrawal rules, the ongoing cost of replacing employer group health insurance, home loan EMIs typical for Hinjewadi / Magarpatta / Electronic City / Whitefield households, and a spouse income offset.
The output is a risk band with specific recommended actions calibrated to your runway vs. expected job search duration. The overriding principle: never make irreversible financial decisions — selling equity, breaking long-term FDs, taking personal loans — before you know your actual runway number.
How the calculation works
Runway (months) = Total runway capital ÷ Adjusted monthly burn
- Total runway capital = Liquid cash + Severance (net TDS) + Accessible EPF + Other cash
- Accessible EPF = EPF balance × 75% under EPFO 3.0 — further reduced by 25% if continuous service < 5 years (tax impact)
- Adjusted monthly burn = All expense inputs + estimated post-layoff health insurance premium (if applicable) − spouse income (if applicable)
Risk bands are then calibrated against your expected months-to-reemployment: if your runway is shorter than your expected job search, the risk band is upgraded by one level regardless of the raw month count. If your runway is more than 1.5× the expected job search time, the risk band is relaxed by one level.
EPFO 3.0 — current rules (as of late 2025)
Under EPFO 3.0, an unemployed EPF member can withdraw 75% of their total EPF corpus after one month of continuous unemployment. The remaining 25% is accessible after 12 months. If your continuous EPF service is 5 years or more, the withdrawal is tax-free. If under 5 years, TDS at 10% applies and the amount is added to your taxable income. The calculator applies a conservative 25% reduction for the under-5-year case.
Frequently Asked Questions
How does the layoff runway calculator work?
The calculator divides your total accessible capital (liquid cash + severance + accessible EPF + other cash) by your adjusted monthly burn (all expenses + post-layoff health insurance premium − spouse income). The result is your runway in months. It then assigns a risk band — Critical, High Risk, Manageable, Comfortable, or Strong — based on the raw runway and your expected months to re-employment.
How much EPF can I withdraw after a layoff in 2026?
Under EPFO 3.0 rules (effective late 2025), you can withdraw 75% of your total EPF corpus after one month of continuous unemployment. The remaining 25% is accessible after 12 months. If you have 5 or more years of continuous EPF service, the withdrawal is fully tax-free. If under 5 years, TDS at 10% applies and the amount is added to your taxable income for the year.
Is EPF withdrawal taxable after a layoff?
Only if your continuous EPF service is under 5 years. With 5 or more years of continuous service, EPF withdrawal is fully exempt from tax under the Income Tax Act. With under 5 years, TDS at 10% is deducted at source and the full withdrawal amount is added to your gross income for the year, taxed at your applicable slab rate.
What is the IRDAI health insurance porting window?
Under IRDAI regulations, you can port your employer group health insurance to an individual policy without losing any accrued benefits or serving fresh waiting periods, provided you apply for porting within 30 to 45 days of your group policy ending. If you miss this window, any new individual policy will typically impose a 2–4 year waiting period for pre-existing conditions. This makes it one of the most time-critical actions after a layoff.
Should I stop my SIPs after a layoff?
Not entirely. Reduce SIPs to a sustainable minimum — typically ₹5,000 to ₹10,000 per fund — rather than pausing them completely. Layoffs often coincide with market corrections, which means SIPs you maintain during this period are purchasing at lower NAVs. Pausing means missing the recovery. Preserving the habit matters more than the amount during a 6–9 month transition.
What is the correct order to liquidate investments after a layoff?
The recommended liquidation order is: (1) Savings account and liquid mutual funds first — these have zero or minimal lock-in. (2) Debt mutual funds — short-term capital gains may apply but losses are minimal. (3) Equity SIPs and long-term equity — liquidate only as a last resort. Selling equity at the bottom of a layoff cycle permanently impairs long-term wealth. Never liquidate PPF mid-term or break FDs unnecessarily.
How does Section 89(1) help with severance tax?
Section 89(1) relief allows you to spread the tax on a lump-sum severance payment across the years the severance compensates for. This prevents the entire amount from pushing you into a higher slab in a single year. The calculation involves a 6-step comparison of actual tax vs. hypothetical tax, and requires filing a prescribed form on the income tax e-filing portal before submitting your ITR. A qualified CA should handle the actual calculation.
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Disclaimer: Returns are not guaranteed or assured. The calculator's accuracy is not warranted. Before making any investment decisions, please seek advice from your financial advisors.
