Frequently Asked Questions

Your savings last as long as your monthly burn rate allows. Burn rate is monthly spending minus monthly income. Divide your total savings by that number to get your runway in months. For example, $10,000 in savings with a $1,000 monthly burn rate gives you 10 months. If your income covers your spending, your savings are stable indefinitely at current rates.

A savings runway is the number of months your savings would last if your income and spending stayed the same. The term comes from startup finance, where founders count how many months of cash remain before running dry. Applied to personal finance, knowing your runway turns a vague worry about money into a specific, actionable number.

Monthly burn rate = monthly spending minus monthly income. If you spend $3,000 per month and earn $1,500, your burn rate is $1,500. A positive burn rate means savings are shrinking each month. Zero or negative means income covers everything and savings are stable or growing.

Yes. Income reduces your effective burn rate. If you spend $2,500 and earn $1,500 per month, only $1,000 actually comes from savings each month, not $2,500. If income matches or exceeds spending, your runway is indefinite at current levels. Add any regular monthly income you receive for a more accurate result.

Two levers: spend less or earn more. Quick wins include cancelling unused subscriptions, cooking at home more often, and setting an automatic savings transfer on payday. Even $200 per month less in spending meaningfully extends your runway. See the savings tips guide for specific tactics.

The standard guideline is 3 to 6 months of living expenses in an accessible account. If you are self-employed, have dependants, or work in a less stable industry, aim for 6 to 12 months. Emergency savings should be separate from investment accounts and kept in a high-yield savings account for quick access without penalties.

No. Savings Roast is a free estimation tool for general education and informational purposes only. The calculation is simple arithmetic and does not account for inflation, investment returns, tax changes, or unexpected life events. For decisions involving significant money, please speak to a qualified financial advisor.

Under 3 months is the red zone. A single unexpected expense can tip you into debt. Three to six months is a functional emergency fund that covers most short-term disruptions. Six to twelve months gives you genuine optionality: the ability to leave a bad job, handle a crisis, or take a calculated risk without panic. Above twelve months is strong financial resilience. The standard guideline for most employed people is three to six months, rising to six to twelve months if you are self-employed, have dependants, or work in a less stable industry.

If your savings reach zero and spending still exceeds income, you would need to cover the shortfall through credit cards or loans, by selling assets, by cutting spending below income, or by increasing income. Credit card debt typically carries 20 to 30% APR, making it expensive to sustain. The value of knowing your runway is that it gives you time to act before that point, while you still have options and can make deliberate choices rather than desperate ones. See what to do if your savings run out for a full action plan.

The arithmetic is exact given the numbers you enter. The result is only as accurate as your inputs. If you underestimate your spending (which most people do by 15 to 25%), the runway will be too optimistic. The calculation also assumes income and spending stay constant, which they rarely do in real life. Treat the result as a directional estimate: a concrete starting point for understanding your position, not a precise forecast.

Burn rate is how much of your savings you spend each month after accounting for income. The term is borrowed from startup finance, where founders track how quickly a company is spending its cash reserves before running out. In personal finance, monthly burn rate = monthly spending minus monthly income. A positive burn rate means savings are shrinking each month. Zero means savings are stable. A negative burn rate means income exceeds spending and savings are growing.

Generally no. Investment accounts such as stocks, ETFs, and pension funds are not immediately accessible, may carry early withdrawal penalties, and their value can fall sharply at exactly the moment you need them. The savings figure used in this calculator should represent money you can access within a few days without penalty: a savings account, a cash ISA, or a similar liquid account. Investment assets build long-term wealth but are a separate category from an emergency cash buffer.