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Employment Compensation Tool

Severance Pay Calculator

Estimate your severance package using salary, length of service, severance weeks, notice pay, unused leave, additional compensation, and deductions.

Instant estimate Flexible severance terms No data stored

Enter Your Employment Details

Use the terms in your employer policy, agreement, or severance offer.

How do you want to enter your pay?

USD
Enter your annual salary before deductions.
USD
Enter the weekly pay amount used by your severance formula.

Length of Service

yrs
mo
Enter 0–11 additional months.

Severance Formula

wks
Example: 2 means two weeks of pay for each year of service.
wks
Enter 0 if your formula has no maximum cap.

Additional Separation Pay

wks
days
days
Used to estimate the value of unused paid leave.
USD
Optional bonus, commission, or other included payment.

Estimated Deductions

%
Optional estimate for withholding or percentage deductions.
USD

Your Severance Breakdown

Estimated package based on the terms entered.

Estimated Take-Home Payout

Estimate
$10,000.00

After the deductions entered above

Gross Separation Package $12,500.00
Base Severance $12,500.00
Severance Weeks 10.00
Weekly Base Pay $1,250.00
Package Details
Credited service 5.00 years
Calculated severance weeks 10.00 weeks
Eligible severance weeks 10.00 weeks
Base severance pay $12,500.00
Notice pay $0.00
Unused leave value $0.00
Other compensation $0.00
Gross package $12,500.00
Percentage deductions −$2,500.00
Fixed deductions −$0.00
Estimated net payout $10,000.00

Calculations are performed in your browser. The salary and employment values entered here are not stored by this calculator.

Separation Pay Estimate

What Is a Severance Pay Calculator?

A severance pay calculator helps estimate the amount of compensation an employee may receive when employment ends under a severance plan, employer policy, employment agreement, or negotiated package.

A common way to describe a severance formula is a certain number of weeks of pay for each year of service. However, actual severance terms can differ, which is why this calculator allows you to enter the exact number of weeks per year and an optional maximum week cap.

You can also include notice pay, unused paid leave, bonuses, commissions, or other compensation when those amounts are part of the package you are estimating.

Weekly pay from annual salary
Weekly Pay = Annual Salary ÷ 52
Base severance formula
Severance Pay = Weekly Pay × Credited Service × Weeks Per Year
Estimated total package
Gross Package = Base Severance + Notice Pay + Leave Pay + Other Compensation
Calculation Process

How the Severance Pay Calculator Works

The calculator converts your salary into a weekly rate, measures your credited length of service, applies your severance formula, and then adds any additional separation payments you enter.

01

Enter Your Pay

Use your annual salary or enter the weekly base pay specified by the severance arrangement.

02

Add Service & Terms

Enter years and months of service, severance weeks per year, and an optional maximum cap.

03

Review Your Package

See base severance, notice pay, leave value, gross package, deductions, and estimated net payout.

Package Components

What Can Be Included in a Severance Estimate?

A separation package can contain more than the basic severance amount. The exact components depend on the terms that apply to the employee.

Base Severance Pay

This calculator determines base severance by multiplying weekly pay by credited service and the number of severance weeks assigned to each year of service.

Notice Pay

If your package includes a specified number of weeks of notice pay, enter those weeks separately. The calculator multiplies them by your weekly base pay.

Unused Paid Leave

If paid leave is included in the package you are evaluating, enter the eligible unused days. The calculator estimates a daily value from weekly pay and your entered workdays per week.

Other Compensation

You can enter an additional amount for compensation such as an included bonus, commission, incentive, or another separation payment.

Example Calculation

Severance Pay Calculation Example

Consider an employee earning $65,000 per year with five years of credited service. If the severance formula provides two weeks of pay for each year of service, the employee receives ten calculated severance weeks.

Annual salary is first divided by 52 to estimate weekly pay. That weekly amount is then multiplied by the ten severance weeks.

Item Example Calculation
Annual Salary $65,000 Entered salary
Weekly Pay $1,250 $65,000 ÷ 52
Credited Service 5 years Entered service
Weeks Per Year 2 weeks Entered formula
Severance Weeks 10 weeks 5 × 2
Base Severance $12,500 $1,250 × 10
Before Using the Result

Severance Pay Depends on the Terms That Apply to You

A calculator can estimate the financial value of terms you enter, but it cannot determine whether a particular payment is legally required or whether every component of a separation package has been included.

Review your employer's written severance policy, employment agreement, collective agreement where applicable, termination documents, and the rules that apply in your jurisdiction before relying on an estimate.

Tax treatment and withholding can also differ depending on the type of payment and your circumstances. The deduction fields in this calculator are therefore user-controlled rather than automatically applying one tax rate to every user.

Common Questions

Severance Pay Calculator FAQs

How do I calculate severance pay?

One way to estimate severance is to multiply weekly pay by credited years of service and the number of severance weeks provided for each year. Enter the actual formula that applies to your situation.

How is weekly pay calculated from annual salary?

This calculator divides annual base salary by 52 to estimate weekly base pay. You can switch to Weekly Pay mode if your severance agreement uses a different weekly amount.

Can I include partial years of service?

Yes. Enter completed years and up to eleven additional months. The calculator converts the additional months into a fraction of a year for the estimate.

What does weeks per year of service mean?

It is the number of weeks of pay assigned to each credited year of employment under the formula you are using. For example, two weeks per year with five credited years produces ten calculated severance weeks.

What is a maximum severance week cap?

Some severance formulas limit the total number of payable weeks. If your terms contain such a cap, enter it in the Maximum Severance Weeks field. Enter zero when no cap should be applied.

Can I add notice pay to the calculation?

Yes. Enter the number of notice-pay weeks included in the package. The calculator values those weeks using your calculated or entered weekly base pay.

Can unused vacation or paid leave be included?

If unused paid leave is part of the package you want to estimate, enter the applicable number of days. The calculator uses your weekly pay and workdays per week to estimate the value.

Does this calculator calculate severance taxes?

It does not automatically determine tax obligations. Instead, you can enter an estimated percentage deduction and fixed deductions to model an estimated take-home amount.

Is the calculator result a guaranteed severance amount?

No. The result is an estimate based only on the values you enter. Actual entitlement and payment can depend on employer terms, agreements, payroll treatment, and applicable rules.

Does this calculator store my employment information?

No. Calculations are performed directly in your browser with JavaScript. The values entered into the calculator are not required to be sent to a calculation server.

Important: This calculator provides a general financial estimate only. It does not determine legal entitlement and is not legal, tax, employment, or payroll advice. Actual severance can depend on your agreement, employer policy, jurisdiction, and individual circumstances.