Free Calculator · Updated 2026

US Severance Pay Calculator

Enter your salary, tenure, and role to get a low, typical, and strong severance estimate — with a step-by-step breakdown, negotiation tips, and a tenure comparison chart.

Your situation

Annual base salary

Use base salary only — exclude equity and bonuses

Years of service

Role level

Company size

Industry

Monthly expenses

UI benefit level

Compare your offer

Enter the offer you received to see how it stacks up against the benchmark above.

Offered amount

Your offer

Benchmark (typical)

Your estimate

Estimated typical severance

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Low estimate

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Typical

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Strong ask

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Weekly salary

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Financial runway

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Est. COBRA cost

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UI benefit est.

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Negotiation tips

Ask for the offer in writing and request at least 5–7 business days to review
Requesting two additional weeks is easier for HR to approve than a large lump-sum
COBRA costs $700–$1,200/month — ask the employer to cover 3–6 months
Ask whether a prorated annual bonus or unpaid commission will be included
Ask for accelerated vesting or an extended exercise window on unvested equity
If you are over 40, the OWBPA gives you at least 21 days to review — use them

Severance Cost by Years of Service

Benchmarks at three tiers — Standard (1 week/year), Generous (2 weeks/year), and Executive (1 month/year) — based on a $75,000 annual salary.

Years of service	Standard (1 wk/yr)	Generous (2 wks/yr)	Executive (1 mo/yr)

What Is a Severance Pay Calculator?

A severance pay calculator estimates the lump-sum or continued salary payment an employer offers when ending your employment without cause. While no federal law requires severance, most employers offer it in exchange for a signed release of legal claims.

This calculator uses your base salary, years of service, role level, company size, and industry to produce a realistic range — from a conservative low estimate to a strong negotiating target. The result is a benchmark, not a guarantee.

Use the breakdown panel to understand exactly how the number was calculated. Each factor — weekly salary, tenure multiplier, role level, company size, and industry — is shown transparently so you can adjust your expectations accordingly.

How Is Severance Pay Calculated?

The most common formula is 1–2 weeks of base salary per year of service, adjusted upward for seniority, company size, and industry norms. Executives often receive 1 month per year or more.

The formula this calculator uses:

Severance = (Annual Salary ÷ 52) × Weeks × Role Factor × Company Factor × Industry Factor

Beyond base pay, a complete severance package may include: prorated bonus, COBRA health insurance subsidy, accelerated equity vesting, outplacement services, and a reference letter. Always negotiate the full package, not just the cash amount.

Frequently Asked Questions

No. There is no federal law requiring employers to offer severance pay. However, if your employment contract, offer letter, or employee handbook explicitly promises it, the employer may be legally obligated to provide it. Some state laws add limited protections in specific circumstances.

Yes. Severance pay is treated as ordinary income and subject to federal income tax, Social Security tax, and Medicare tax. Some states also tax it. If your severance is paid as a lump sum, the withholding may be higher than your normal rate. Use our Severance Tax Calculator for a net take-home estimate.

Yes — and you should. Severance is almost always negotiable, especially when the employer is asking you to sign a release of legal claims. Common items to negotiate include more weeks of pay, extended health coverage (COBRA subsidy), prorated bonus, accelerated equity vesting, and outplacement services. The key is to make a specific, professional counter-proposal rather than a vague request.

It depends on your state. In most states, you can collect unemployment benefits even if you receive severance — but some states reduce or delay benefits if the severance is paid as a continuation of salary rather than a lump sum. Filing for unemployment immediately after layoff is advisable regardless; the state will determine eligibility.

If you are 40 or older, federal law (the OWBPA) gives you a minimum of 21 days to review and 7 days to revoke after signing. In a group or mass layoff, the review period extends to 45 days. If you are under 40, there is no federal minimum — but you should still take adequate time. Never sign on the day it is presented.

Yes. Most severance agreements include a release of claims — you waive the right to sue the employer for events before the signing date. This is why it is important to identify any potential claims (discrimination, retaliation, wage theft) before signing. Some rights cannot be waived, including your right to file an EEOC charge, workers' compensation claims, and vested pension benefits.

The federal WARN Act requires employers with 100 or more employees to give 60 days' notice before a mass layoff (50+ workers at one site) or plant closing. If proper notice is not given, you may be entitled to up to 60 days of back pay and benefits. Use the WARN Act Checker on this site to see if your situation qualifies.