What savings runway means
Savings runway estimates how many months your available savings can cover a cash shortfall. Adding income makes the estimate more realistic than dividing savings by expenses alone.
Example
With $15,000 in savings, $2,500 in monthly expenses and no monthly income, runway is 6 months. If income is $1,000 per month, the monthly gap is $1,500 and runway becomes 10 months.
Common mistakes
Separate essential expenses from optional expenses if you want a stress-test runway. Add irregular bills manually if they will come due during the runway period.
Limitations
This is not financial advice. Irregular expenses, taxes, debt payments, benefits, emergency costs and inflation can change real runway.
Last reviewed: 2026-05-17