Severance Pay Calculator
Estimate your severance payout from your salary and years of service, using the two most common formulas or a custom rate. Free, private, no sign-up.
Severance is not legally required in most US states or under federal law — it is offered at employer discretion, by company policy, or per an employment contract or WARN Act obligation for qualifying layoffs. These are gross, pre-tax estimates for planning purposes, not a guarantee of what any employer will offer.
Common Severance Formulas
A common baseline, especially at smaller companies or for shorter tenures. 5 years of service = 5 weeks of pay.
A more generous standard often seen at larger companies and in more senior roles. 5 years of service = 10 weeks of pay.
Some employers use a different multiplier, or a hybrid (e.g., a flat amount plus a per-year multiplier). Enter the exact rate your employer or offer letter specifies.
Severance Pay FAQ
Is severance pay guaranteed by law?
In most of the US, no — severance is not federally mandated. It exists at employer discretion, through a written policy, an employment contract, or a union agreement. One exception: the WARN Act requires 60 days' notice (or pay in lieu) for qualifying mass layoffs at larger employers — check if your layoff meets those thresholds.
What is a typical severance package?
One to two weeks of pay per year of service is common in the US, though packages vary widely by company size, seniority, and industry. Executives often negotiate more; some companies offer a flat number of weeks regardless of tenure.
Is severance pay taxed?
Yes — severance is taxable income, typically subject to the same federal and state withholding as regular wages (and sometimes withheld at a flat supplemental rate). This calculator shows gross, pre-tax amounts.
Can I negotiate my severance offer?
Often, yes — especially for longer tenure or senior roles. Common asks include extended health insurance (COBRA) coverage, extra weeks of pay, accelerated vesting, or a neutral reference agreement. Read any severance agreement carefully before signing, particularly clauses about waiving legal claims.
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