About the Severance Pay Calculator
Severance is typically offered as a number of weeks of pay per year of service, sometimes with a flat base. This calculator estimates the lump sum and translates it into months of income to help you plan.
How it’s calculated
Severance = weekly pay × (weeks per year of service × years of service + any additional flat weeks), where weekly pay = annual salary ÷ 52.
Example calculation
At $80,000 salary with 6 years of service at 2 weeks per year, severance is about $18,462 — roughly 2.8 months of income.
Frequently asked questions
Is severance required?
In most US jobs, no — it depends on company policy, your employment contract, or negotiation. When offered, it often comes with a release you're asked to sign.
Is severance taxed?
Yes — severance is treated as taxable wages, subject to income tax and payroll taxes. The estimate here is a gross figure before those are withheld.
This calculator provides estimates for educational purposes and should not be considered financial, tax, or legal advice. Your actual figures may vary with lender terms, fees, and market conditions.