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Calculation Machine

Severance Pay Calculator

Severance total, tax and how long it lasts.

Reviewed by James Whitfield · How we check our maths

Your values

ⓘ Live results

Results
Gross severance package
$28,369.23
After tax
$19,858.46
Weeks of pay
12
Severance component
$20,307.69
Unused leave payout
$4,061.54
Months of expenses covered
4.7 months
Weekly pay
$1,692.31

Quick answer

Severance is usually quoted as weeks of pay per year of service; the practical question is how many months of expenses the after-tax amount covers.

The formula

Severance = weekly pay × weeks per year × years of service

Worked example

Worked example

Using the values the calculator loads with.

Inputs

  • Annual salary88000 $
  • Years of service6
  • Weeks of pay per year of service2
  • Maximum weeks (0 for none)26
  • Unused leave days12 days
  • Bonus or extras4000 $
  • Tax withheld on severance30 %
  • Monthly expenses4200 $

Result

  • Gross severance package$28,369.23
  • After tax$19,858.46
  • Weeks of pay12
  • Severance component$20,307.69
  • Unused leave payout$4,061.54
  • Months of expenses covered4.7 months

How to use the Severance Pay Calculator

  1. 1Enter your salary and complete years of service.
  2. 2Enter the weeks per year your policy or offer gives, and any cap.
  3. 3Add unused leave, bonus and the withholding rate.

Frequently asked questions

Is severance negotiable?

Often yes — especially the notice period, benefits continuation, outplacement support and the timing of equity vesting, even when the formula itself is fixed.

How is severance taxed?

It is ordinary income. Lump sums are often withheld at a flat supplemental rate, which may be higher or lower than your actual bracket, so expect a reconciliation at tax time.

About this calculator