Free · 2 minutes

Can I quit my job yet?

Put in your real numbers. See how long your savings last if you quit today, and when the business could start paying your bills.

The numbers say

Not yet. Keep the job.

Your savings run out in month 8. The business wouldn't cover your bills until month 21.

Savings last
7 months
Pays your bills
Month 21
TodayYour savingsMonth 27

Reach $1,458 a month, or save $26,363 more, before you quit.

Use the time you still have a salary. Test the idea properly, free.

Take the free first step

How it works

How the answer is worked out

  • Month by month. Each month your savings pay for whatever the business doesn't: your living costs plus its running costs, minus what it brings in.
  • Growth compounds. Revenue grows by your monthly rate from today's figure. Real growth is lumpier than this, so test a lower rate too.
  • A cushion, not zero. A yes means you still have three months of living costs left at the lowest point. Hitting exactly zero isn't a plan.
  • Before tax. It doesn't include tax, health cover or the salary you give up. Add those to your living costs if they apply to you.
  • Why not just quit? A study of more than 6,300 founders by Joseph Raffiee and Jie Feng found businesses started while keeping a day job were 33% less likely to fail. Source

A worked example

What the numbers look like for most people starting out

Say you need $3,000 a month to live on, have $18,000 saved, and your business makes $500 a month, costs $200 to run and grows 10% a month. If you quit today your savings last about 7 months, but the business wouldn't cover your bills until month 21. To quit safely you'd want the business making about $1,458 a month first, or another $26,363 saved.

Questions

How do I know if I can afford to quit my job to start a business?

Say you need $3,000 a month to live on, have $18,000 saved, and your business makes $500 a month, costs $200 to run and grows 10% a month. If you quit today your savings last about 7 months, but the business wouldn't cover your bills until month 21. To quit safely you'd want the business making about $1,458 a month first, or another $26,363 saved.

How much should I save before quitting my job to start a business?

Enough to cover your living and business costs until the business pays for both, plus a cushion. This calculator works that number out from your own figures and asks for three months of living costs left over at the lowest point.

Should I quit my job before my business makes money?

Usually not. With no revenue there's no evidence the gap will ever close, so your savings only buy time. Get a first paying customer while employed, then use real numbers to decide.

What growth rate should I use?

What your last three months actually show. If you have less history than that, try 5% and 15% and see how much the answer changes. If it flips, you need more evidence before deciding.

Up next

Keep going

Next step

Not sure the idea's worth it yet? Find out free.

Five questions about your idea and a straight answer. It's week zero of Humble's 30 days, and you can do it before your lunch break ends.

Take the free first step