What Is a Severance Pay Calculator?
A severance pay calculator estimates the lump-sum payment an employee may receive when their job ends, typically due to layoff, restructuring, or termination without cause. Many employers and severance policies grant a fixed number of weeks of pay for each year worked, so the total can be estimated with a simple multiplication. This tool is a general estimate — your actual entitlement depends on your contract, company policy, and local labor laws.
How to Use It
Enter three values: your weekly pay (gross weekly wage), your years of service (use decimals for partial years, e.g. 7.5), and the weeks of pay per year your policy grants (commonly 1 to 4). The calculator instantly shows the total severance, the total weeks of pay, and your weekly rate.
The Formula Explained
The calculation is:
$$\text{Severance} = \text{Weeks per Year} \times \text{Years of Service} \times \text{Weekly Pay}$$
First, multiply weeks per year by years of service to get the total number of weeks paid. Then multiply by the weekly pay to get the dollar total.
Worked Example
Suppose you earn $1,000 per week, have worked 10 years, and your policy gives 2 weeks of pay per year. Total weeks = \(2 \times 10 = 20\) weeks. Severance = \(20 \times \$1{,}000 =\) $20,000.
$$\text{Severance} = 2 \times 10 \times \$1{,}000 = \$20{,}000$$
FAQ
Is severance pay taxable? In most jurisdictions, yes — severance is treated as taxable income. This calculator shows the gross amount before taxes and withholdings.
What if I worked a partial year? Enter the fractional years (e.g. 3.5). The math handles decimals directly.
What weeks-per-year value should I use? Check your employment contract or company handbook. Common figures are 1, 2, or 4 weeks per year of service, but yours may differ.
