Translate the terms of a severance offer or written policy into a gross dollar estimate. Enter the weekly pay figure used by that offer, its number of severance weeks and any separate fixed cash severance. The calculator does not assume that every employee receives a set number of weeks per year of service.
Gross severance estimate
Change the inputs to see the estimate. Calculations stay in your browser.
Gross arithmetic estimate before withholding. Enter terms from an actual offer, plan or agreement. The tool does not decide eligibility, payment timing or tax withholding; keep PTO and final wages separate.
Severance calculation and example
Estimated gross severance = weekly base pay × offered weeks + other fixed cash severance. For an offer of eight weeks at $1,000 per week, the estimate is $8,000 before withholding. A separate $500 cash amount would make it $8,500. Enter that extra amount only if it is part of the severance offer and has not already been included in the weekly rate or weeks.
Where the inputs come from
Read the actual offer, employment agreement, employer plan or applicable policy. Some offers state a fixed number of weeks; others use a formula involving service. If your document promises two weeks for each of four completed years, that particular formula yields eight weeks. Do not apply it to a different plan. A policy may define partial years, caps, minimums, notice pay or offsets differently.
Use the weekly pay basis specified by the offer. If the plan explicitly bases severance on annual base salary divided by 52, a $52,000 salary gives $1,000 per week. Confirm whether commissions, bonuses or a recent pay change affect the applicable figure. If the document uses a different divisor or pay measure, follow its terms rather than the example.
What the total leaves out
- Taxes and withholding: The result is gross. The IRS includes severance pay in income, and payroll withholding can make the check smaller; this tool does not calculate net pay.
- Final wages and unused leave: Keep earned wages and any payable PTO separate from the severance amount. Use the PTO payout calculator only after confirming which leave hours qualify.
- Benefits and noncash terms: Health coverage, outplacement, vesting and other terms are not assigned a dollar value here.
- Timing and conditions: A payment schedule, release, eligibility conditions or offsets may affect what is ultimately paid. Read the offer before relying on the estimate.
Is severance required in the United States?
The federal Fair Labor Standards Act does not require severance pay. An employer’s plan or agreement can provide it, and other applicable law may matter in a particular situation. This tool computes a figure from stated terms; it cannot determine whether an offer is owed, whether a release should be signed or how severance affects unemployment benefits.
Frequently asked questions
How many weeks of severance do I get per year of service?
There is no universal number under the FLSA. Enter weeks from your actual offer or calculate them under your plan’s stated formula, including its caps and rules for partial years.
Does the calculator show take-home severance?
No. It shows gross cash severance before payroll taxes and withholding. A withholding amount is not necessarily your final income tax liability.
Can I add my PTO payout to the extra cash field?
Keep PTO separate so you can check its own eligibility and calculation. The extra field is for fixed cash severance stated in the offer beyond the weekly amount.
What if my severance is paid over several months?
The multiplication estimates the total cash amount, assuming all stated payments are made. It does not show payment dates, future conditions or a present value.
Estimate eligible PTO payout separately · Estimate weekly overtime pay
Sources and methodology
Reviewed October 7, 2026. The arithmetic is stated above and runs in your browser. Federal context: U.S. Department of Labor, severance pay; tax treatment: IRS Publication 525, taxable income. Educational estimate only; check the actual plan, offer and applicable rules.