Severance Pay Calculator: Estimate Your Package

Weeks per year of service, caps and PTO — before the meeting.

Quick answer: Turn years of service and salary into a severance pay estimate with PTO payout and cap options in seconds — free, private, nothing saved or sent.

💡 US default is at-will employment: no federal law requires severance. Packages come from contracts, employer policy or negotiation — which is exactly why modeling yours helps.

How to use

  1. Enter your annual salary and years of service.
  2. Set weeks of pay per year and any plan cap.
  3. Add unused PTO days if your employer pays them out.
  4. Press Calculate for the gross package and a take-home approximation.

General information only — not medical, financial or legal advice. Figures cross-checked against public official sources (IRS / HMRC / NHS / WHO guidance); content last reviewed September 2026. For decisions that matter, confirm with a licensed professional in your country.

About this tool

There is no federal law requiring severance in the United States — most offers are discretionary, which is exactly why a clear model helps you negotiate. This calculator uses the most common formula: a set number of weeks of pay per year of service (one week is typical, two is generous), with optional caps at 12, 26, 39 or 52 weeks the way many corporate plans write them. Add unused PTO days and the tool adds their payout at your daily rate, shows the gross package, and approximates take-home using the flat federal supplemental withholding rate. The result is an educational estimate, not professional advice — actual entitlement depends on your contract, offer letter, employer policy and state wage rules, and severance almost always requires signing a release. Run the numbers before the meeting; nothing is uploaded or stored.

FAQ

Is severance pay required by law in the US?
Generally no. With narrow exceptions like the WARN Act for mass layoffs, severance is voluntary — it is whatever your contract, employer policy or negotiation produces, which is why modeling a target number first pays off.
How many weeks per year of service is standard?
One week per year is the common floor, two weeks per year is typical for professional roles, and executive packages sometimes reach a month per year. Caps around 26 weeks appear frequently in corporate plans.
How is severance taxed?
It is usually treated as supplemental wages. Many employers withhold the flat federal supplemental rate (22% below the million-dollar threshold), and this estimate applies that rate only as a rough approximation — your real withholding varies by state and totals.
What are the limits of this calculator?
It is an educational estimate, not professional advice: it cannot see your offer letter, release agreement, bonus proration, COBRA subsidies or state-specific PTO rules, all of which change real outcomes.
Should I sign the severance agreement right away?
Usually not immediately. Releases are negotiable, and workers 40 and older get at least 21 days to consider under the ADEA. Compare the modeled package against your notice period and unemployment eligibility first.

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