Terminal Velocity: The Physics of the Layoff Runway
In aviation, a runway is the space you have to get off the ground or come to a safe stop. In personal finance, your Layoff Runway is the finite time between your last paycheck and your last dollar. Understanding this number is the difference between a controlled "Career Pivot" and a desperate "Job Grab."
The visualizer above calculates your Static Runway—assuming no new income. However, a real-world layoff involves dynamic variables: severance, unemployment benefits, and healthcare costs. Most professionals find that their actual survival window is often 30-40% different than their initial "Cash / Expenses" estimate once these real-world frictions are applied.
The COBRA Cliff: Your Burn Rate's Worst Enemy
In a layoff, your Monthly Burn Rate doesn't stay static—it often increases. The primary driver is the loss of employer-subsidized healthcare.
- COBRA PremiumsExpect to pay 102% of the total plan cost. For a family of four, this can reach $2,200/month, potentially doubling your burn rate instantly.
- ACA / MarketplaceA layoff is a "Qualifying Life Event." You may find plans at 50% of the COBRA cost, effectively extending your runway by 1-2 months just by switching providers.
Unemployment: The Variable Speed Lever
Unemployment insurance is a "Partial Income" stream that slows your descent to zero. However, the maximum weekly benefit is often a fraction of a professional's previous salary.
| State | Max Weekly Benefit (Est) | Monthly Contribution to Runway |
|---|
| Massachusetts | $1,000+ | ~$4,300 (Significant Runway Extension) |
| California | $450 | ~$1,950 (Moderate Extension) |
| Florida | $275 | ~$1,190 (Minimum Extension) |
Note: These figures are 2024-2025 estimates. Always check your specific Department of Labor (DOL) portal for actual caps.