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A severance package can be one of the more confusing numbers an employee has to work out on their own, since the formula behind it is rarely spelled out in plain language. This calculator applies the standard weeks-per-year-of-service method so you can get a gross estimate in seconds, whether you are an employee reviewing an offer or an employer setting a policy.
Most severance policies use the same basic structure: take weekly pay, which is annual salary divided by 52, and multiply it by a set number of weeks for each year of service. A common rate is one to two weeks per year, though executives and senior roles sometimes get more, and the rate itself comes entirely from company policy rather than any legal requirement in most cases. An employee earning $78,000 a year with 4.5 years of service at a two-week-per-year policy would see roughly 9 weeks of pay, or about $13,500 before taxes.
Many policies build in a floor and a ceiling around the raw calculation. A minimum guarantee, such as two weeks regardless of tenure, protects newer employees from receiving an unreasonably small amount. A maximum cap, often somewhere between 26 and 52 weeks, limits payout for very long-tenured employees so the policy stays affordable for the employer. This calculator applies both automatically: if your raw calculation falls under the minimum, it uses the minimum instead, and if it exceeds the maximum, it caps the result there.
This is a gross estimate of base severance pay only. It does not account for taxes and withholdings, which reduce the amount you actually receive, nor does it include extras that some separation agreements add on top, such as accrued but unused vacation payout, a pro-rated bonus, COBRA health coverage subsidies, or outplacement services. If you are reviewing a real severance offer, use this number as a starting point and read the full agreement, or have an employment attorney review it, before you sign anything.
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