What this measures
Severance pay is money offered when employment ends, usually on top of any final regular paycheck or unused PTO payout. There's no single universal formula, most policies pay a set number of weeks of salary for each year worked, so that's the model this calculator uses, with your own numbers rather than a guessed industry average.
The formula
Your weekly rate comes from your hourly rate times 40, or your annual salary divided by 52. Multiply that by your years of service and by however many weeks of pay your policy grants per year, and that's the estimated package. If your policy has a guaranteed minimum or a maximum cap, turn those on in Advanced mode and they're applied on top.
A quick example
Say your annual salary is $75,000 and you've worked there 5 years, with a policy of 2 weeks of pay per year of service. Your weekly rate is about $1,442.31. Five years at 2 weeks a year comes to 10 weeks, so the estimated gross severance is about $14,423.
Frequently asked questions
Am I legally owed severance pay?
In most places, no, not automatically. Severance is typically offered at an employer's discretion, through a written policy, or as part of an employment or separation agreement, rather than required by default. Some situations or locations are the exception, so check your contract, employee handbook, or local labor law rather than assume either way.
How many weeks per year is normal?
One to two weeks of pay per year of service is the figure most commonly cited as a general norm, though it varies a lot by employer, role, seniority, and location. There's no single correct number, which is why this calculator lets you set your own instead of guessing at an industry average.
What do the minimum and maximum actually do?
Some severance policies guarantee at least a certain number of weeks even for short tenure, and separately cap the total regardless of how long you've worked there. Turn either on if your policy actually has one, they don't need to be used together.
Does this include things like equity, COBRA, or bonuses?
No, this calculates the cash severance formula only. Real packages can include other components like equity acceleration, continued health coverage, or a prorated bonus, which this calculator doesn't attempt to value. Treat this as the starting cash figure, not the full worth of an offer.
How accurate is the take-home estimate?
Only as accurate as the percentage you enter. Severance is often taxed differently from regular pay depending on where you live, and this calculator has no way to know your actual withholding, so treat the net figure as a rough guide rather than a paycheck prediction.