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Severance pay is typically calculated as a number of weeks of salary per year of service — commonly 1-2 weeks, though this varies entirely by employer policy or employment contract, since severance isn't a legal requirement in most jurisdictions (unlike final paycheck laws, which usually are).
This calculator takes your weekly salary, years of service, and your specific severance policy rate, and estimates the total payout.
How it works
Enter your weekly salary, years of service, and the weeks-of-pay-per-year rate from your employer's policy (commonly 1-2 weeks). The tool multiplies the three together to estimate the total severance amount.
- Enter weekly salary ($).
- Enter years of service.
- Enter weeks of pay per year of service.
- Click Calculate to see your results.
Examples
5 years at a 2-week policy
A $1,200/week salary with 5 years of service at a 2-weeks-per-year policy comes to $12,000 (10 weeks of pay).
Who should use it
- Estimating a severance payout during a layoff or restructuring.
- HR teams modeling the cost of a workforce reduction.
Industry applications
- Human resources and workforce planning
Advantages
- Simple way to estimate a severance payout once you know your policy rate.
- Flexible weeks-per-year input rather than assuming one fixed rate.
Limitations
- Doesn't account for other separation benefits (unused PTO, bonuses, COBRA) that may be paid alongside severance.
Common mistakes to avoid
- Assuming a specific weeks-per-year rate applies universally, when it's entirely dependent on your specific employer's policy or contract.
- Confusing severance pay with other separation benefits like unused PTO payout or COBRA continuation, which are calculated separately.
Best practices
- Check your employee handbook or employment contract for the actual severance policy that applies to you, rather than assuming a standard rate.
Tips
- If you're unsure of your specific policy's weeks-per-year rate, check your employee handbook, offer letter, or ask HR directly before relying on an assumed rate.