17-Feb-09 NEW CALCULATOR: Redundancy Planning Calculator

Nick's picture

Have you been Credit Crunched ?

Are you worried you might be Credit Crunched ?

Careful planning in the event of redundancy is essential.

There are a lot of decisions you will need to make:

  • Should you cut out discretionary expenditure (holidays, restaurants, new clothes, luxury brands)?
  • How much cushion does it give you to cut out discretionary expenditure ?
  • When will your cash run out ?
  • Do you need to move to a cheaper house ?
  • Can you get a loan to see you through ?
  • At what point are you in serious trouble ?
  • When do you need to plan to sell illiquid assets ?
  • How long have you got before you absolutely HAVE to find work ?

My Redundancy Planning Calculator is aimed at helping you to make those decisions. Here are a list of inputs:


  • Liquid Assets
    • These are assets that you own that are as good as cash. You can get near immediate access to your money. Shares and bank deposits are a good example
  • Liquid Assets Annual Return After Tax
    • This is the return you expect to get on your liquid assets
  • Liquid Assets Monthly Return After Tax
    • Calculated... you don’t have to enter this
  • Illiquid Assets
    • Assets that take time to access their worth. The equity (value – mortgage) you have in your house for example... or term deposits
  • Illiquid Assets Annual Return After Tax
    • Return you would expect on your illiquid assets
  • Illiquid Assets Monthly Return After Tax
    • Calculated... you don’t have to enter this
  • Months taken to sell illiquid assets
    • Illiquid assets take time to access the worth... how long ?
  • I can get a loan up to
    • Do you have access to a loan ?... If so, how much can you borrow ?
  • Loan Annual Interest Rate
    • Loan annual interest rate Loan
  • Monthly Interest Rate
    • Calculated
  • Today
    • Today’s date – Calculated
  • Monthly Rent
    • How much you pay per calendar month in rent
  • Annual Rent Change
    • How you expect your annual rent to change over time
  • Monthly Rent Change
    • Calculated Monthly Mortgage payments - If you have a mortgage, how much is it costing u ?
  • Monthly Essential Expenditure
    • This is the expenditure that you cannot do without... Things like food, electricity, water, council tax
  • Monthly Discretionary Expenditure
    • Things that you could cut out if you had to
  • I am going to cut out Discretionary Expenditure
    • This allows you to see how much longer you have to find a job if u tighten your belt. Use this to bargain with your wife when she goes to buy new shoes... Be prepared to give up that gym membership though... ; - >

Don't know how much of your spending is discretionary ?.. Get started on my expense tracker

Enter your own values, and the calculator will provide the following information:


  • It tells you when it thinks you’re in big trouble
  • Advises when to think about selling illiquid assets
  • Allows you to enter large inflows or outflows of cash
  • Tells you when you need a loan

Welcome feedback !

Good luck



Training Video on Redundancy planning:


Redundancy-Planning-calculator.xls86 KB

Well timed!

Is this the most downloaded sheet?

For those who are new to excel and even those who are somewhat familiar with excel, the layout of the input form on the left and the output on the right gives a template idea for solving similar issues. A lot of us use excel in a strict tabular format, with some columns calculating values based on other columns.

Good to note the use of protected cells like the illiquid-return cell here.