Calculators
Severance Pay Calculator
Estimate a severance package from years of service, weeks of pay per year, minimum and maximum weeks, and benefits continuation.
- Runs in your browser
- Nothing uploaded
The tool
Enter your numbers below. Results update as you type, and nothing leaves your browser.
Everything you enter stays on your own machine. Nothing is sent to us or to anyone else, which you can confirm in your browser network tab.
What people use it for
- Budgeting a restructuring
- Checking a severance offer
- Designing a severance policy
- Negotiating an exit package
About this tool
What the Severance Pay Calculator does
Severance policies often pay a number of weeks of salary for each year of service, within a minimum and maximum, and may continue health benefits for some months. This calculator applies a formula of that kind so employers can budget and employees can check an offer.
Formula
- Weeks = years of service × weeks per year, within the minimum and maximum
- Severance pay = weeks × salary ÷ 52
- Total = pay + months of benefits × monthly cost
Worked example
Using the starting values in the calculator above:
| Input | Value |
|---|---|
| Annual salary | $78,000 |
| Years of service | 6.5 |
| Weeks of pay per year of service | 2 |
| Minimum weeks | 4 |
| Maximum weeks | 26 |
| Months of benefits continued | 3 |
| Monthly benefit cost | $800 |
| Result | Value |
|---|---|
| Total severance package | $21,900 |
| Severance pay | $19,500 |
| Weeks of pay | 13.0 |
| Benefits continuation | $2,400 |
How to read the result
Severance is usually taxed as wages. A release of claims is typically signed in exchange for it.
Statutory notice and redundancy pay apply in many countries regardless of company policy; check local law.
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Questions
Questions about this tool
The things clients actually want to know — costs, timelines, ownership and what happens after launch.
Commonly as a number of weeks of pay per year of service, subject to a minimum and maximum.
In the US it is generally not required, except under some contracts or plans; many other countries require statutory payments.
Usually yes, as ordinary income.
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