About the Career Break Calculator
A career break — a sabbatical, gap year, parental leave, travel or a "mini-retirement" — has two price tags. The first is the cash you need to live on while you are not earning: your monthly costs for the length of the break plus one-off expenses such as flights, courses or health insurance. The second is the opportunity cost: the salary you forgo and the retirement contributions that would have compounded for decades.
This calculator puts both on one page. Enter how long you plan to be off, what you will spend each month, any income you expect during the break, and your current salary and savings. It tells you the savings target, any gap versus what you already have, how much to put away each month before you leave, and how many months your current savings would actually last.
Use it when you are weighing whether you can afford time off now, or how long to prepare. It assumes you return to the same salary afterwards; if you expect a pay cut or a raise, treat the lost-income figures as a rough guide.
With the default inputs, the savings needed for the break is $25,000.00. Change any value above to recalculate instantly.
How to use the career break calculator
- 1Enter how many months you plan to take off.
- 2Add monthly living costs and any income you will still earn during the break.
- 3Include one-off costs such as travel, courses or health cover.
- 4Enter your salary, retirement contribution rate and current savings.
- 5Set how many months you have to prepare and read your monthly saving target.
Formula and method
The savings target is your net monthly burn — living costs minus any income during the break — multiplied by the number of months, plus one-off costs. The shortfall is the target minus the savings you already have, spread evenly over the months before the break to give a monthly saving goal.
Salary forgone is your gross monthly pay times the months off. Missed retirement contributions are that forgone pay times your contribution rate (including any employer match), and their value at retirement compounds them yearly at the expected return for the years you have left. Runway divides savings left after one-off costs by the monthly burn.
- c
- Retirement contribution rate (% of salary)
- r
- Expected annual investment return
- Y
- Years until retirement
Worked examples
Six-month sabbatical on an $85k salary
Six months at $3,500 plus $4,000 of one-off costs requires $25,000, which $30,000 of savings covers. The real cost is $42,500 of salary plus the $4,000 extras, $46,500 in total. The $4,250 of skipped retirement contributions could have grown to about $23,067 over 25 years at 7%.
One-year break with part-time income
A $3,200 monthly burn for 12 months plus $8,000 of extras needs $46,400. With $20,000 saved the gap is $26,400, or about $1,467 a month over 18 months. Today’s savings would only last 3.75 months after the one-off costs.
Short three-month break, little saved
Three months at $3,000 plus $2,500 of extras is $11,500. With $5,000 saved, you need $6,500 more — about $1,083 a month for six months. Missing $900 of contributions costs roughly $6,917 by retirement at 6% over 35 years.
Frequently asked questions
How much should I save before taking a career break?+
Cover your full monthly costs for the length of the break, plus one-off costs, plus a cushion of three to six months for the job search when you return. Returning to work often takes longer than expected.
What does a sabbatical really cost?+
Beyond the cash you spend, you give up salary, employer retirement contributions and matching, and the decades of compound growth on those contributions. This calculator shows each of those separately.
Should I keep contributing to retirement during a career break?+
Without earned income you generally cannot contribute to a 401(k) or similar workplace plan. In the US, a spouse with earned income may be able to fund a spousal IRA for you.
What about health insurance during a career break?+
Budget for it explicitly. In the US options include COBRA continuation coverage, a marketplace plan or a partner’s plan; add the premium to your monthly costs or one-off costs.
What is a mini-retirement?+
A mini-retirement is a planned break of several months to a few years taken during your working life rather than waiting until the end. The math is the same as a sabbatical: fund the time off and account for lost earnings.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.