Business
Severance Pay Calculator
Enter annual salary, years of service, how many weeks of pay are offered per year served, and any plan minimum to estimate a severance package.
Estimate a severance package from years of service, a per-year week rate, and a plan minimum.
Severance formulas vary widely by company policy, contract, and jurisdiction — this is a planning estimate, not a legal entitlement calculation. Check your employment agreement or local labor law for the actual formula that applies.
Severance pay estimate
Severance = max(Years × Weeks per year, Minimum weeks) × (Salary / 52)
Most severance policies pay a set number of weeks for each year of service, with a guaranteed floor for employees who haven't been there long — this calculator applies whichever is larger.
How to use
- Enter annual salary and total years of service (partial years, like 4.5, are fine).
- Enter the weeks-of-pay-per-year rate from your company's severance policy or employment contract — 1-2 weeks per year is common.
- Enter any plan minimum (a guaranteed floor regardless of tenure) if your policy has one.
Example
Input: $80,000 salary, 4.5 years of service, 2 weeks per year, 2-week minimum
Output: 9 weeks ≈ $13,846
Student-friendly breakdown
This walkthrough emphasizes the most searched ideas for Severance Pay Calculator: severance pay calculator, severance calculator, layoff severance calculator. Start with the formula above, then follow the guided steps to double-check your work. For quick revision, highlight the givens, plug into the equation, and finish by verifying your units.
Need more support? Use the links below to open the long-form guide, browse additional examples, or hop into adjacent calculators within the same topic — each one is a quick way to double-check your work or handle a related question without starting from scratch.
Deep dive & study plan
Severance Pay Calculator: Estimates a severance package from years of service and a per-year week rate. It's built around severance pay calculator, severance calculator, layoff pay calculator, so you can go from a raw question to a checked answer without switching tools.
The math behind it: Most severance policies pay a set number of weeks for each year of service, with a guaranteed floor for employees who haven't been there long — this calculator applies whichever is larger. The core relationship is Severance = max(Years × Weeks per year, Minimum weeks) × (Salary / 52), shown above the calculator so you can see exactly how your inputs turn into the result.
To use it well: (1) Enter annual salary and total years of service (partial years, like 4.5, are fine). (2) Enter the weeks-of-pay-per-year rate from your company's severance policy or employment contract — 1-2 weeks per year is common. (3) Enter any plan minimum (a guaranteed floor regardless of tenure) if your policy has one. Keep your units consistent as you go, and re-run a case you already know the answer to — it's the fastest way to catch a typo before it throws off a result you're relying on.
Worked example: entering $80,000 salary, 4.5 years of service, 2 weeks per year, 2-week minimum returns 9 weeks ≈ $13,846. Try swapping in your own numbers next, especially a case you're unsure about, before you use this for something that matters.
Quick retention checklist
- Speak the formula aloud (or annotate it) so the relationships stick.
- Write each step in your own words and compare with the numbered list above.
- Swap in new numbers for the Example to make sure the calculator (and your logic) handles edge cases.
- Check at least one related calculator below — it's the fastest way to confirm your numbers still line up from a different angle.
FAQ & notes
Is severance pay legally required?
In most of the US, no — severance is typically discretionary unless promised in a contract, employee handbook, or required by a mass-layoff law like the WARN Act. Requirements vary significantly outside the US, so check local labor law.
Does this account for unused PTO or bonuses?
No — this calculates base severance only from salary and tenure. Unused vacation payout, pro-rated bonuses, and continued benefits are usually calculated separately and vary by company policy.
What formula does the Severance Pay Calculator use?
Most severance policies pay a set number of weeks for each year of service, with a guaranteed floor for employees who haven't been there long — this calculator applies whichever is larger.
How do I use the Severance Pay Calculator?
Enter annual salary and total years of service (partial years, like 4.5, are fine). Enter the weeks-of-pay-per-year rate from your company's severance policy or employment contract — 1-2 weeks per year is common. Enter any plan minimum (a guaranteed floor regardless of tenure) if your policy has one.