Severance Pay Calculator

Estimate severance pay based on salary, years of service, and company severance policy.

About This Calculator

Estimate severance pay based on salary, years of service, and company severance policy. Use the calculator above for instant results.

Worked Examples

Example 1: $80K, 5 years, 2 wks/yr

  • 10 weeks x $1,538/wk = $15,385

Answer: $15,385

Example 2: $120K, 8 years, 2 wks/yr

  • 16 weeks x $2,308/wk = $36,923

Answer: $36,923

Example 3: $60K, 3 years, 1 wk/yr

  • Minimum 4 weeks: 4 x $1,154 = $4,615

Answer: $4,615

Who Uses This Calculator?

💰
Laid-Off Workers

Estimate expected severance.

⚖️
Employment Lawyers

Calculate client severance.

💼
HR Departments

Communicate severance policy.

📊
Finance Teams

Model severance costs for RIF planning.

Common Mistakes to Avoid

❌ No legal right to severance

Most employees have no legal right to severance. It is a contractual or policy matter. Always review your employment agreement.

❌ Signing away rights for severance

Most severance agreements require signing a general release of claims. Consider consulting an employment attorney before signing.

Frequently Asked Questions

Is severance legally required?

Not federally. Some states have limited requirements. Severance is a policy/contractual matter. Review your offer letter and employee handbook.

Negotiate severance?

Yes — especially with longer tenure, specialized role, or potential legal claims. Companies often have room to increase initial offer.

Severance vs unemployment?

Receiving severance may delay unemployment eligibility in some states. File for unemployment when eligible after severance ends.