How the Quit Calculator Works

Understanding the calculations behind your quit readiness score and financial projections.

Important Disclaimer

All calculations are estimates based on your inputs and simplified assumptions. Real life is much more complex and unpredictable. Use these projections as rough planning guides, not as guarantees. Consider consulting with a qualified financial advisor for personalized guidance.

Quit Readiness Score (0-100)

Your quit readiness score combines multiple factors to give you a single number representing how prepared you are to leave your job. Here's how it's calculated:

Runway Factor (40 points)

Uses a logarithmic curve based on your runway without side income. This means:

Big improvements when you go from 0-6 months runway
Diminishing returns as you get past 12+ months
Caps at 24 months for scoring purposes (but Forever runway still gives you the full 40 points)

Breakeven Factor (30 points)

Uses exponential decay for time to breakeven:

Already profitable? Full 30 points
Breakeven in 1-3 months? Still great score
Score drops rapidly after 6 months
Never breaking even? 0 points

Financial Cushion (20 points)

Uses an S-shaped sigmoid curve based on months of expenses covered by your assets:

Steep improvements from 3-9 months of expenses
Levels off after 12+ months (you're already well-cushioned)
The curve is centered around 6 months of expenses

Confidence Factor (10 points)

Simple linear scaling: your confidence level (1-10) directly translates to 1-10 points. This is the only component that's not curve-based.

Why These Mathematical Curves?

The scoring isn't just arbitrary numbers. It reflects real psychological and financial realities:

Logarithmic Runway Scoring

Going from 2 to 4 months of runway feels like a huge relief. Going from 20 to 22 months? Not as life-changing. The logarithmic curve captures this diminishing psychological impact.

Exponential Breakeven Decay

A 3-month path to profitability feels achievable. An 18-month path feels risky and uncertain. The exponential decay heavily penalizes longer breakeven timelines because they're much riskier.

S-Curve Financial Cushion

Having 1-3 months of expenses is scary. 6-9 months feels much safer. 15+ months doesn't feel much different from 12 months. The S-curve captures this "safety threshold" effect.

Key Metrics Explained

Runway if No Income

This is your financial cushion - how long your savings would last if you had zero income. It's calculated by dividing your total assets by your monthly expenses (minus any passive income).

Breakeven Point

The month when your growing side income plus passive income will cover all your monthly expenses. If your income isn't growing or won't grow enough, this shows as "Never".

Cash Needed Until Breakeven

The total amount of money you'll need to cover your expenses from now until you reach breakeven. This is your "bridge to independence" fund.

Total Assets

Your cash on hand plus brokerage account. Only include money you can actually access for living expenses (don't include retirement accounts you can't touch).

Total Income

Your current monthly side income plus all passive income sources. This is what you're earning right now outside of your day job.

Net Burn / Net Gain

The difference between your total income and monthly expenses. "Net Burn" means you're spending more than you earn. "Net Gain" means you're earning more than you spend.

How the Charts Work

Cash Runway Chart

Shows how your savings will change over time under two scenarios:

Blue line: With your growing side income and passive income
Orange dashed line: Burn-only scenario (no side income)
Purple line: Breakeven point where income covers expenses

Monthly Cash Flow Chart

Shows your income and expenses over time:

Green line: Your growing total income (side + passive)
Red line: Your fixed monthly expenses
Intersection: When income meets expenses (breakeven)

Assumptions & Limitations

What We Assume

Your side income grows at a consistent monthly rate
Your expenses stay roughly the same
Your passive income remains constant
You can liquidate your assets without major penalties
No major emergencies or unexpected expenses

What We Don't Account For

Market volatility affecting your investments
Taxes on income and capital gains
Healthcare costs if you lose employer insurance beyond what is in the inputs
Economic recessions or industry downturns
Life changes (marriage, kids, illness, etc.)
Seasonal variations in income or expenses

Mathematical Details (For the Curious)

Here are the actual formulas used in the calculations:

Runway Score (40 pts)

(log(runway + 1) / log(25)) × 40

Capped at 24 months

Breakeven Score (30 pts)

30 × e^(-2.5 × normalized_months)

Where normalized = months/18

Cushion Score (20 pts)

20 / (1 + e^(-0.8 × (months - 6)))

Sigmoid curve centered at 6 months

Confidence Score (10 pts)

(confidence_level / 10) × 10

Simple linear scaling

Tips for Using This Tool

Be Conservative

Use lower growth rate estimates
Include higher expense estimates
Set confidence levels honestly
Plan for the unexpected

Model Different Scenarios

Try optimistic vs pessimistic projections
See how more savings affects your score
Test different side income growth rates
Consider seasonal business fluctuations