Severance Pay Calculator
Estimate a severance package from your salary, years of service and a weeks-per-year formula — plus how many months of income it covers.
How it works
Weekly pay = salary ÷ 52 · Weeks of pay = years × weeks per year · Severance = weekly pay × weeks + lump sum
Most severance formulas grant a set number of weeks of pay for each year of service — one to two weeks is typical, with senior roles sometimes negotiating more. Multiplying weeks of pay by your weekly salary gives the base package, to which employers may add unused PTO, a prorated bonus or benefits continuation. Expressing the total as months of income shows your runway: how long the package alone would cover normal living costs while you search for a new role. Severance is not legally required in the U.S. for most private employees, so treat any formula as a negotiating starting point.
Worked example
On an $80,000 salary, weekly pay is $1,538.46. Five years of service at two weeks per year is 10 weeks, or $15,384.62. With no extra lump sum that is about 2.3 months of income.
Frequently asked questions
Is severance pay required by law?
In the U.S. there is generally no federal requirement to pay severance to most private-sector workers; it is set by company policy, an employment contract, or negotiation. Some layoffs trigger notice requirements under the WARN Act, which is separate from severance.
How many weeks per year is standard?
One to two weeks of pay per year of service is common, though it varies by employer, seniority and region. Executives often negotiate more, and some policies cap the total number of weeks.
Is severance taxed?
Yes. Severance is treated as taxable wages and has income and payroll taxes withheld, often at the supplemental wage rate. The figure here is a gross amount before tax.
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Educational estimate, not financial advice.