How much runway should a freelancer keep?

Six months of essential spending is the standard target, freelance income is lumpier than employment, and three months disappears fast when two invoices pay late in the same quarter.

Where should the cushion live?

A high-yield savings account you can drain in a day. Not invested, a cushion that can be down 20% the month you need it isn't a cushion.

When should I panic, or at least act?

Act at three months: cut discretionary spend, chase receivables, start pitching. The worst time to look for clients is when you visibly need them.

Calculators

Runway calculator

Feast-and-famine is the freelance default. This tells you, in months, how long you can survive a dry spell, and what a real six-month cushion looks like for your spending.

Your numbers

Liquid savings

Cash you can actually spend: checking, savings, money market. Not retirement accounts.

Essential monthly spending

Rent, food, insurance, minimum obligations, the survival number, not the comfortable one.

Expected monthly income during the slow patch

Retainers, part-time work, a partner covering shared costs, whatever keeps flowing.

What the ledger says

Your runway8months

Net monthly burn: $3,000
Six-month cushion for your spending: $24,000
Gap to that cushion: $0

Estimate, not advice

The formula

Runway = savings ÷ (essential spending − incoming money). The cushion benchmark is six months of full essential spending, ignoring income.

What this ignores

Tax bills already owed (set quarterly money aside separately), irregular annual costs, and the psychology of watching a balance fall. Most planners suggest starting the client hunt when runway drops under three months.

Field notes

How much runway should a freelancer keep?: Six months of essential spending is the standard target, freelance income is lumpier than employment, and three months disappears fast when two invoices pay late in the same quarter.
Where should the cushion live?: A high-yield savings account you can drain in a day. Not invested, a cushion that can be down 20% the month you need it isn't a cushion.
When should I panic, or at least act?: Act at three months: cut discretionary spend, chase receivables, start pitching. The worst time to look for clients is when you visibly need them.