Annual contract-gap allowance
potential working days − holidays − admin/training − expected gap daysWith 260 potential days, six weeks off, 20 admin days and 25 gap days, only 185 days remain billable.
Two different questions
Plan annual gaps and emergency runway separately.
Expected bench time reduces the number of days available to earn revenue. Emergency cash answers a different question: how long can you keep paying personal costs if new revenue stops?
Cash runway
emergency cash ÷ monthly personal spendingWith €18,000 emergency cash and €2,000 monthly personal spending, runway is 9 months.
The downside test
Do not stop at the comfortable scenario.
If a contractor at €500 loses another 35 billable days, annual surplus in the worked example falls from €27,125 to €15,750 and the capital target moves from 7.8 to 12.1 years away. That is the decision signal: either increase runway, reduce commitments or price the risk into the next contract.
Base billable days185Downside days150Timeline impact+51 months
Common questions
Keep the buffers honest.
What is cash runway?
The number of months your designated emergency cash can cover your current personal spending if contract income stops.
Is bench time the same as cash runway?
No. Bench time is an annual planning assumption that reduces billable capacity. Cash runway is the separate liquid buffer available when income stops.
Should investments count as emergency cash?
Usually not. Keep liquid emergency cash separate from invested capital so market movements do not distort the interruption buffer.
See runway, minimum rate and downside in one decision picture.
The planner connects contract gaps to your full financial assumptions and produces a private summary you can revisit before renewals.
Get the planner — €29One-time €29 · immediate browser access · no subscription · figures stay in your browser