Estimate your total severance package: weeks of pay for each year of service under your employer's policy, unused PTO payout, any bonus owed and an after-withholding estimate. Compare what you would get under other common policies.
Last updated:
Your pay
$
hrs
Used to turn an hourly rate into weekly pay.
days
Used to value one day of unused PTO.
Severance policy
yrs
weeks
Your employer's formula. 1 to 2 weeks per year is common in the US.
weeks
Leave 0 if the policy has no minimum.
weeks
Leave 0 for no cap.
Other payouts
days
$
Prorated or earned bonus paid out at separation.
$
e.g. pay in lieu of notice, benefits stipend, retention payment.
%
US federal supplemental wage rate is 22% (37% above $1M). Use 0 to skip the net estimate.
Enter your values to see the result.
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How to use the Severance Pay Calculator
Enter your base pay and choose whether it is per year, month, pay period, week or hour.
Enter your years of service and your employer's weeks of pay per year, plus any minimum or cap.
Add unused PTO days, any bonus owed and other lump sums in your offer.
Set a withholding rate to estimate the amount that will land in your account.
Read the total package and compare it with other policies in the table below.
How severance pay is calculated
Most employer severance formulas pay a number of weeks of base salary for every year you worked, then add money you were already owed, such as unused vacation and earned bonus:
Severance = years of service × weeks per year × weekly pay
Weekly pay = annual salary ÷ 52 (monthly pay × 12 ÷ 52, or hourly rate × hours per week).
Weeks per year comes from your company policy, union contract or offer letter. Many policies also set a minimum (for example 4 weeks) and a cap (for example 26 or 52 weeks).
PTO payout = unused days × daily pay, where daily pay = weekly pay ÷ workdays per week.
Total package = severance + PTO payout + bonus + other lump sums.
Example: a $65,000 salary is $1,250 a week. With 6.5 years of service at 2 weeks per year, that is 13 weeks, or $16,250. Eight unused PTO days at $250 a day add $2,000, and a $3,000 bonus brings the package to $21,250 before tax.
Severance by years of service ($65,000 salary)
Base severance only, with no minimum or cap applied. Scale it to your salary by multiplying by your salary ÷ 65,000.
Years of service
1 week per year
2 weeks per year
3 weeks per year
1
$1,250
$2,500
$3,750
2
$2,500
$5,000
$7,500
3
$3,750
$7,500
$11,250
5
$6,250
$12,500
$18,750
10
$12,500
$25,000
$37,500
15
$18,750
$37,500
$56,250
20
$25,000
$50,000
$75,000
Before you sign a severance agreement
In the US, severance is generally not required by federal law; it is set by company policy or negotiated. Earned wages and, in many states, accrued vacation must be paid regardless of whether you sign.
Severance is taxed as supplemental wages. Employers often withhold federal income tax at a flat 22% (37% on supplemental wages above $1 million), plus Social Security, Medicare and any state tax.
Ask whether health coverage (or COBRA premiums) continues, how long you have to review the release, and whether a lump sum or salary continuation affects unemployment benefits in your state.
Other countries often set statutory minimums (for example redundancy pay in the UK or termination pay in Canadian provinces), so check your local rules as well as your contract.
Frequently asked questions
How is severance pay usually calculated?
Most policies pay a set number of weeks of base pay for each full or partial year worked. The formula is years of service × weeks per year × weekly pay, where weekly pay is your annual salary divided by 52. Employers often add a minimum number of weeks and a maximum cap.
What is a typical severance package?
In the US, one to two weeks of pay per year of service is the most common formula, often with a minimum of 2 to 4 weeks. Senior roles frequently negotiate more, such as one month per year or a fixed number of months. There is no single legal standard, so your company policy or agreement decides.
Is severance pay required by law?
In the US, federal law does not require severance pay; it comes from employer policy, contracts or negotiation. Large layoffs can trigger WARN Act notice rules (60 days of notice or pay in lieu). Many other countries, such as the UK and Canada, do set statutory minimum redundancy or termination pay.
Is severance pay taxable?
Yes. Severance is treated as wages. In the US it is subject to income tax, Social Security and Medicare, and employers commonly withhold federal income tax at the 22% supplemental rate. Your final tax depends on your total income for the year and your state.
Do I get paid for unused vacation days?
Often yes. Some US states require employers to pay out accrued vacation at separation, while others leave it to company policy. This calculator values each unused day at your weekly pay divided by your workdays per week.
Can I negotiate my severance?
Usually. Common requests are more weeks of pay, a prorated bonus, continued health coverage or COBRA premiums, extra time to exercise stock options, and a neutral reference. Having the exact numbers from this calculator helps you compare offers.
Is my salary information stored or sent anywhere?
No. All calculations run in your browser. Your last inputs are only remembered locally on your device for convenience.
Are all the tools on FreeToolCabin tested for quality and accuracy?
Yes! Every tool on our site undergoes automated Q/A testing in real browser environments to ensure high precision, correct output, and zero errors. If you happen to spot a bug or have a suggestion, please contact us at [email protected] and our team will review it right away.