Severance Pay Estimate CalculatorFree online financial calculator — instant results, no sign-up
Estimate gross severance from weekly salary and a stated weeks-per-service-year policy.
Estimates only, based on the inputs and assumptions shown. This is not financial, investment, tax, or legal advice. Prices, rates and local rules may change; crypto scenarios do not predict returns. Confirm important decisions with a qualified professional.
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About the Severance Pay Estimate Calculator
The Severance Pay Estimate Calculator estimates gross severance by converting annual salary to weekly pay and applying a stated number of severance weeks per completed service year. It adds any additional lump sum to that salary-based amount. With the default inputs, it calculates 16 severance weeks and $26,000.00 in gross severance before taxes or other deductions.
- Annual salary ($)
- Your annual gross salary in dollars, defaulting to $78,000, is divided by 52 to estimate weekly pay.
- Completed service (years)
- The number of completed years of service recognized under the severance policy, with a default of 8 years.
- Severance per service year (weeks)
- The number of weeks of pay awarded for each completed service year under the stated policy, with a default of 2 weeks.
- Additional lump sum ($)
- An extra gross payment in dollars added once to the salary-based severance estimate, with a default of $2,000.
Formula and method
P = A / 52; W = Y × R; G = (P × W) + L = (A / 52) × Y × R + L.
- AAnnual gross salary in dollars.
- PEstimated weekly gross pay in dollars, using 52 weeks per year.
- YCompleted service in years.
- RSeverance weeks awarded per completed service year.
- WTotal severance weeks, excluding the additional lump sum.
- LAdditional gross lump sum in dollars.
- GTotal estimated gross severance in dollars.
Divide annual salary by 52 to obtain weekly pay, multiply completed service years by the policy's weeks-per-year rate, and multiply those results to calculate salary-based severance. Add the lump sum once at the end. Using the default inputs, weekly pay is $78,000 / 52 = $1,500; severance weeks are 8 × 2 = 16; and gross severance is ($1,500 × 16) + $2,000 = $26,000.00.
Worked example
These are the calculator's starting values and the results it actually produces for them.
Inputs
- Annual salary78000 $
- Completed service8 years
- Severance per service year2 weeks
- Additional lump sum2000 $
Results
- Severance weeks16
- Gross severance$26,000.00
How to use the Severance Pay Estimate Calculator
- 1Enter your annual gross salary in dollars; the default is $78,000.
- 2Enter the completed service years recognized by your employer's policy; the default is 8.
- 3Enter the policy's severance weeks per service year; the default is 2.
- 4Enter any additional gross lump sum; the default is $2,000, or use zero if none applies.
- 5Review the severance weeks and gross severance outputs, then compare the estimate with your written severance terms.
Reading your result
Severance weeks shows the service-based pay multiple: 16 weeks with the default inputs. It does not necessarily mean payments will be spread over 16 weeks. Gross severance shows the total estimated payment before taxes and deductions, including the additional lump sum: $26,000.00 with the defaults. The lump sum increases gross severance but does not increase severance weeks.
Limitations
This tool assumes weekly pay equals annual salary divided by 52 and that the same weeks-per-year rate applies to every completed service year. It does not automatically apply policy caps, minimum awards, tiered rates, partial-year credit, eligibility rules, or jurisdiction-specific requirements. Bonuses, commissions, benefits, unused leave, and other payments are not calculated separately. Taxes and deductions are not estimated, so the result is not take-home pay. The estimate does not establish a legal entitlement; your employment agreement, employer policy, and applicable law determine what is owed.
Common questions
Why do the default inputs produce $26,000.00 rather than $24,000.00?+
The salary-based portion is $78,000 / 52 × 8 × 2 = $24,000. The additional $2,000 lump sum brings gross severance to $26,000.00.
Does the additional lump sum count toward severance weeks?+
No. Severance weeks are calculated only as completed service years multiplied by weeks per service year. The lump sum is added afterward as a dollar amount.
How should I handle a partial year of service?+
Use completed years as specified by the input and confirm how your employer recognizes service. This calculation does not automatically award partial-year credit; if your policy prorates service, that adjustment needs separate verification.
Will I receive the displayed gross severance as take-home pay?+
Not necessarily. The displayed amount is before tax withholding and other applicable deductions. In the United States, severance pay is generally subject to employment taxes and income tax withholding; this calculator does not calculate either.
Does the calculator save my information?+
Calculations run in your browser. While signed in, inputs and results are automatically recorded in account history; saving a result creates a separate saved record.
Further reading
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Results are estimates for informational purposes and are not financial, medical or legal advice.