Severance Calculator

U.S. only tools

A severance package worth planning around: weekly pay times a number of weeks per year of service. Enter your salary, your years and the multiplier your offer (or your company’s policy) suggests, and the page works out the payout and how many months of income it covers.

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Your base pay for a full year, before bonus and benefits.

Full years on the payroll, including the fraction - five and a half years is 5.5, because the offer is usually pro-rated.

The multiplier the offer applies per year worked - one or two weeks is the common range.

Results update as you type. Nothing leaves your device.

Currency symbol

Symbol only - nothing is converted and no exchange rate is used. Figures quoted in the explanation text stay as the sources publish them.

Estimated severance

$7,212

At $75,000 a year ($1,442 a week), 5 weeks of pay across 5 years of service comes to about $7,212, or roughly $1.2 months of income.

Weeks of pay
5 weeks ($7,212)
Pay in months
$1.2
Weekly pay at your salary
$1,442

Common severance formulas

Weeks per yearWeeks of payEstimated payoutIncome covered
0.5 weeks2.5$3,606$0.6 months
1 week5.0$7,212$1.2 months
2 weeks10.0$14,423$2.3 months
3 weeks15.0$21,635$3.5 months

Most packages land at one or two weeks per year of service; three is generous and usually tied to a role, a layoff class or a release agreement. Your actual number comes from the letter, not from any average.

This is an estimate, not legal or financial advice. A package is owed only if a contract, a company policy or a state law says so, and the CSV you download ends with this same sentence.

The first thing the page says is the most important thing: severance is a contract and company-policy matter, not something the law requires in the United States at the federal level. An estimate here is a calculation of a formula you supply, not a promise of what you are owed.

About this severance calculator

Severance is one of the few workplace numbers that is entirely a matter of contract: most US employers are not required to offer it, so the useful question is not what you are owed but what the policy and the offer actually say.

That is the frame this page uses. It applies a weeks-per-year formula to your salary and tenure, shows the common formulas side by side, and states plainly where the law stops - federal law requires notice for mass layoffs, not pay. Nothing here is a promise of an entitlement.

How this severance calculator works

The weeks-per-year formula

Take the annual salary, divide by 52 to get the weekly pay, multiply by the weeks per year your package grants, then multiply by your years of service. Five years at one week per year on a $75,000 salary is (75,000 / 52) × 5, which is 5 weeks of pay - about $7,212.

The page multiplies; it does not average. The weekly pay scaled by tenure means a two-week formula pays exactly twice a one-week one on the same number of years, and ten years pays twice five. Both the pay-per-year multiplier and the years are multiplication, so neither number stays put when the other changes.

The page also converts weeks into months of income (weeks divided by 4.33), because that is the figure people actually feel: a payout is a runway, and a runway is measured in months rather than weeks.

One row of the table repeats this arithmetic at 0.5, 1, 2 and 3 weeks per year using your exact salary and tenure, so the four common formulas can be read side by side before you negotiate.

One and two weeks per year are the common range

Most packages fall at one to two weeks of pay per year of service; three is generous and usually tied to a role, a layoff class, or the terms of a release agreement.

The four rows of the table (0.5, 1, 2 and 3 weeks per year) are a fixed comparison set, not a repeat of the multiplier you entered above. They show what each common formula would pay at your salary and tenure so you can weigh one against another; the figure you typed yourself appears only in the result at the top.

Half a week per year is not unusual at small companies, and tenure supports half-year steps, so the table treats fractions as real, negotiable levers rather than rounding them away.

Because the pay-per-year figure and the years are both multipliers, changing either one moves the outcome by proportion and not by a fixed amount - which is why the same multiplier can look generous to a short tenure and thin to a long one.

What the law actually says

Federal law does not require severance; the Worker Adjustment and Retraining Notification (WARN) Act covers notice for mass layoffs, but even where it applies it is notice, not pay. State law, employment contracts, and company policy are what make severance real.

A release agreement often trades the payout for a waiver of claims - worth reading before relying on a number, because it can spell out the timing of payment (lump sum versus salary continuation), any conditions tied to continued compliance, and what happens if you breach its terms.

States differ: some add their own notice or payment obligations around large layoffs and some do not. This page does not judge which rules apply in your state, and it does not convert WARN notice weeks into money - it only prices the formula you entered.

What the estimate leaves out

The result is formula arithmetic on the salary you type in. Real packages often add accrued vacation, a pro-rata bonus, continued health coverage or outplacement, and they may pay as salary continuation rather than a lump sum - which changes both the timing and the tax picture.

Whether a payout is offered at all, and on what terms, is a matter for your contract, your employer’s policy and the release they ask you to sign, so read the result as the formula and not as the offer. An estimate, not a return, and not tax advice.

Inputs are clamped to the field ranges the page uses - tenure up to 50 years and pay-per-year from 0.5 to 4 weeks - and if a very large salary pushes the figure past the page’s money ceiling, it prints the raw number with a clear note that the input is out of range rather than pretending the total is realistic.

Worked examples

Each example below was run through the calculator on this page when the site was built, so the numbers match what you see when you enter the same inputs.

Five years at one week per year

Annual salary: $75,000.00 · Years of service: 5 years · Weeks of pay per year of service: 1 weeks

Estimated severance

$7,212

At $75,000 a year ($1,442 a week), 5 weeks of pay across 5 years of service comes to about $7,212, or roughly $1.2 months of income.

Weeks of pay: 5 weeks ($7,212) · Pay in months: $1.2 · Weekly pay at your salary: $1,442

About $7,200 - roughly 10 weeks of pay, or just over two months of income at a straight $75k annual salary.

Ten years at two weeks per year

Annual salary: $90,000.00 · Years of service: 10 years · Weeks of pay per year of service: 2 weeks

Estimated severance

$34,615

At $90,000 a year ($1,731 a week), 20 weeks of pay across 10 years of service comes to about $34,615, or roughly $4.6 months of income.

Weeks of pay: 20 weeks ($34,615) · Pay in months: $4.6 · Weekly pay at your salary: $1,731

About $34,600 - 20 weeks of pay, close to five months of income. The formula table shows why tenure multiplies the difference.

Eight years at one and a half weeks

Annual salary: $120,000.00 · Years of service: 8 years · Weeks of pay per year of service: 1.5 weeks

Estimated severance

$27,692

At $120,000 a year ($2,308 a week), 12 weeks of pay across 8 years of service comes to about $27,692, or roughly $2.8 months of income.

Weeks of pay: 12 weeks ($27,692) · Pay in months: $2.8 · Weekly pay at your salary: $2,308

12 weeks of pay, about $27,692, or roughly 2.8 months of income - and the table shows what 0.5 and 2 weeks per year would pay at the same salary and tenure.

Three years at two weeks per year

Annual salary: $60,000.00 · Years of service: 3 years · Weeks of pay per year of service: 2 weeks

Estimated severance

$6,923

At $60,000 a year ($1,154 a week), 6 weeks of pay across 3 years of service comes to about $6,923, or roughly $1.4 months of income.

Weeks of pay: 6 weeks ($6,923) · Pay in months: $1.4 · Weekly pay at your salary: $1,154

About $6,923, which is 6 weeks of pay: two weeks per year sounds generous until a short tenure turns it into a very short runway.

Frequently asked questions

Is severance pay required by law?

Not under federal law. It comes from employment contracts, company policy or state requirements, and one or two weeks per year of service is the common range where it exists. This page estimates a formula you supply; it does not promise an entitlement.

How is severance usually calculated?

Most formulas pay a number of weeks of salary per year of service - typically one or two - times your weekly pay. Some add extra for a release agreement, a role, or a layoff class, and some pay through a date rather than as a lump sum, which affects taxes and benefits differently.

Why is severance quoted in weeks per year of service?

Because that is the shape most company policies use: a number of weeks of pay for each year worked, usually one or two. It scales with tenure and is easy to administer, which is exactly why it became the common formula and why this page starts from it.

Does a severance package affect unemployment benefits?

It can. Many states offset or delay benefits while severance is being paid, and a lump sum is treated differently from salary continuation. Check your state unemployment office for its rule before assuming the package and the benefit stack.

Is severance pay taxable?

Yes. It is wage income, reported on a Form W-2 and subject to income tax and payroll tax, and a large lump sum can produce withholding that does not match your bracket for the year. An estimate, not a return, and not tax advice.

Can an employer take severance back after paying it?

A release agreement usually says what happens to the payment if you breach its terms, and some agreements tie payment to continued compliance such as not disparaging the employer. Read the release before counting on the money, and keep a copy of what you signed.

Assumptions and sources

  • The formula is deliberate weeks-per-year arithmetic on the salary the visitor supplies.
  • The legal framing - no federal severance requirement, WARN as notice not pay, state and contract variation - is stated on the page and repeated in the estimate export.
  • Not modelled: accrued vacation, pro-rata bonuses, continued benefits, and salary continuation instead of a lump sum.

Last reviewed 2026-10-09. An estimate, not a return, and not tax advice. Read the full disclaimer.

Where a figure on this page comes from an official agency — HUD, IRS, FICO or a state body — the site keeps a dated snapshot of the source page in its sources library, and a scheduled job re-checks that snapshot, so the number can be traced back to the document it came from.