Severance Pay Estimator

How severance pay is typically calculated

Most employers that offer severance use a simple length-of-service formula: a set number of weeks of pay for every year you worked. One to two weeks per year of service is the most common range in the United States and Canada, though senior roles, executives, and unionized positions often negotiate more. This calculator turns your annual salary into a weekly rate (salary ÷ 52), multiplies it by your years of service and your company’s weeks-per-year policy, and shows the result as a low–high range so you can see the realistic spread before you read your offer letter or start negotiating.

This tool gives estimates only — it is not legal, tax, or financial advice. Actual severance depends on your employment contract, company policy, local law, and any negotiated agreement, and payouts are usually taxed as ordinary income.

How to use it

1. Enter your gross annual salary before taxes and deductions.
2. Enter your years of service — partial years are fine (for example, 4.5).
3. Set the low and high weeks-per-year values. Leave the defaults of 1 and 2 if you don’t know your company’s policy, or set both to the same number if you do.
4. Read the results instantly: your weekly pay plus low and high severance estimates update as you type.
5. Adjust the assumptions to model different offers or negotiation targets.

FAQ

Is severance pay required by law?

In the U.S., generally no — it’s a matter of company policy or contract, though mass layoffs can trigger WARN Act notice rules. Some countries and Canadian provinces do mandate minimum payouts, so check your local rules.

Is severance taxed?

Yes. Severance is treated as ordinary wages in most jurisdictions, so income tax and payroll taxes are typically withheld. The figure shown here is a gross, pre-tax estimate.

Can I negotiate a higher package?

Often, yes. Tenure, seniority, and the circumstances of the separation all matter. Use the high end of the range here as a starting point, and consider asking about benefits continuation and outplacement support too.

Does my data leave my browser?

No. All math runs locally on your device — nothing you type is uploaded, stored, or shared.