Use this free online severance pay calculator to estimate a layoff or reduction-in-force package from annual salary, years of service, weeks of pay per year of service, optional min and max week caps, and a bonus amount. Multicalify converts salary to a weekly rate, clamps the week count, then adds any bonus so you can plan cash runway before you sign. No signup is required.
A severance package is not your last paycheck for hours already worked, and it is not a PTO cash-out by itself. Severance is usually an employer-offered separation amount based on tenure and policy. Keep unused leave on the PTO payout calculator, model the final wages check on the final paycheck calculator, and estimate continuation health premiums on the COBRA cost calculator.
Browse more payroll tools under tax and payroll, the parent finance calculators hub, and the calculators archive. This page stays on package weeks and dollars so redundancy pay planning does not collide with termination paycheck math.
What this severance pay calculator estimates
Enter the annual salary used in the offer, how many years of service count toward the formula, how many weeks of pay the employer grants per year, any minimum or maximum week floors and ceilings, and a one-time bonus if the letter includes one. The tool returns an estimated total package. Use it as a severance package calculator when you want a transparent weeks times weekly pay sketch, or as a layoff severance calculator when comparing two written offers.
Who it helps
- Employees reviewing a reduction-in-force letter before they sign a release
- HR partners checking that a proposed formula matches the stated week rules
- Job seekers modeling redundancy pay calculator scenarios across employers
- Anyone who wants a free severance estimate without creating an account
How to use the calculator
- Enter annual salary as the base the offer uses for weekly pay.
- Enter years of service that count under the policy or letter.
- Enter weeks of pay granted per year of service.
- Enter minimum weeks and maximum weeks if the policy clamps the result.
- Enter any bonus or lump-sum add-on listed separately from salary weeks.
- Read total package dollars, then compare against your written offer.
Pull numbers from the offer letter rather than guessing. If the letter uses months of pay instead of weeks, convert carefully before you enter weeks per year. If equity acceleration or career coaching sits outside cash, keep those items off this total so the severance pay calculator stays honest.
How Multicalify calculates severance
Weekly pay equals annual salary divided by 52. Raw weeks equal years multiplied by weeks per year. Weeks are then raised to the minimum if needed and capped at the maximum when a max greater than zero is set. Total package equals weekly pay times weeks plus any bonus.
Weekly pay = annual salary / 52
Weeks = clamp(years × weeks per year, min weeks, max weeks)
Total = weekly pay × weeks + bonus
Worked severance example
Suppose annual salary is $90,000, years of service are 8, weeks per year are 2, the minimum is 4 weeks, the maximum is 26 weeks, and a $2,000 bonus is included. Weekly pay is $90,000 divided by 52, which is about $1,730.77. Raw weeks are 8 times 2, which equals 16. That value sits between 4 and 26, so weeks stay at 16. Salary portion is about $27,692.31. Adding the $2,000 bonus produces a total near $29,692.31.
| Item | Value |
|---|---|
| Annual salary | $90,000 |
| Years / weeks per year | 8 years, 2 weeks per year |
| Min / max weeks | 4 / 26 |
| Weeks in package | 16 |
| Weekly pay | About $1,730.77 |
| Bonus | $2,000 |
| Estimated total | About $29,692.31 |
How to read a severance package result
Treat the total as a planning estimate for cash from the employer formula you modeled. Offers may pay as a lump sum, salary continuation, or a mix. Taxes still apply in most cases, and a release of claims often accompanies payment. If two letters use different week caps, run both through the same severance package calculator inputs so the comparison stays apples to apples.
After you know the cash range, plan benefits timing separately. Health continuation often moves to COBRA or a marketplace plan. Unused vacation may appear on a different check. Keep those questions on the COBRA cost calculator and PTO payout calculator so package math stays distinct from benefits and leave cash-outs.
Severance versus final pay and PTO
Final pay covers wages for hours already worked, overtime, and sometimes accrued leave on the last check. Severance is an additional separation amount the employer chooses to offer, often in exchange for a release. Mixing those buckets inflates or understates what you will actually receive. Use this layoff severance calculator for the package, then open the final paycheck tool for earned wages.
Negotiation and documentation tips
Ask which salary base the employer used, whether commissions or bonuses count, and whether the week formula matches a published policy. Confirm the payment schedule, any non-compete language, and the deadline to sign. If equity, outplacement, or a consulting bridge matters more than cash weeks, list those items beside the Multicalify total instead of forcing them into the bonus field.
When counsel reviews the release, bring the week math and the written letter. A clear redundancy pay calculator printout helps you ask precise questions without treating a website number as a legal entitlement.
Common mistakes
- Counting PTO cash-out or final wages as severance weeks
- Ignoring min and max caps that change the week count
- Using a target bonus instead of the bonus written in the offer
- Forgetting that taxes and withholdings still reduce take-home cash
- Assuming every employer owes the same weeks per year of service
- Treating the estimate as a court award or statutory guarantee
Limitations and YMYL disclaimer
This severance pay calculator is an educational estimate only. It is not legal advice, tax advice, or a guarantee of what an employer must pay. Severance rules, releases, and tax treatment vary by employer, contract, and jurisdiction. Confirm every figure with the written offer and qualified counsel before you sign or rely on a package for major financial decisions.
Related payroll tools
Model earned wages on the final paycheck calculator, unused leave on the PTO payout calculator, and continuation premiums on the COBRA cost calculator. More options live under tax and payroll and the calculators archive.
Planning cash runway after a layoff
Convert the package total into months of essential expenses before you accept a lower counteroffer. If payment is salary continuation rather than a lump sum, map the calendar of deposits so rent and insurance do not slip. Revisit the estimate when a revised letter changes years credited, weeks per year, or the bonus line.
If you later compare new job offers, keep severance history separate from ongoing salary tax sketches on the salary tax calculator. Past package dollars do not replace a clear picture of future take-home pay.
Conclusion
Use this severance pay calculator to turn salary, tenure, week rules, caps, and bonus into a transparent package estimate you can compare with the letter in front of you. Keep final wages and PTO on sibling tools, confirm taxes and release terms with professionals, and treat every Multicalify result as planning support rather than a legal determination.