💼Closure Fund Calculator

Save since UI won't cover you

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Self-Employed? You Won't Get Unemployment

Here's the hard truth: in the US, self-employed workers generally don't qualify for regular unemployment insurance if their business closes, because UI is funded by payroll taxes employers pay on behalf of employees — and you don't have one. A few states offer limited elective coverage, but there's no broad safety net waiting the way there is for laid-off employees.

Build Your Own Safety Net Instead

Since unemployment benefits aren't a reliable backstop, the practical move is building a closure fund before you need it — enough to cover essential expenses for several months while you regroup. This calculator takes your monthly expenses and desired runway, compares that to what you've saved, and shows a monthly pace to close the gap in a year.

Frequently Asked Questions

Can self-employed workers collect unemployment if they close their business?

Generally no — UI is funded through employer payroll taxes, and a few states only offer limited elective coverage instead.

How much should I save before closing my business?

A common target is 3-6 months of essential expenses, depending on how quickly you expect new income to start.

What if I haven't saved enough yet?

This calculator shows the gap to your target and a suggested monthly amount to close it within a year.

※ A few states offer limited elective unemployment coverage for the self-employed — check your state's rules for details.