Severance Pay Calculator

A severance pay calculator is a financial tool that estimates the severance package an employee may be entitled to upon termination, layoff, or mutual separation. It takes inputs like annual salary, years of service, job level, and the severance formula (typically expressed as weeks of pay per year of service) to calculate the gross severance amount. The calculator supports multiple jurisdiction presets - US Common Law (at-will), US WARN Act, UK Statutory, and EU General - each with appropriate weeks-per-year multipliers, maximum caps, and regulatory references. Our severance pay calculator also provides estimated COBRA health coverage costs and unemployment benefit estimates to help you plan your financial transition. All calculations run entirely in your browser with no data uploaded to any server.

1. Enter Employment Details: Input your annual salary, total years of service at the company, and select your job level (Entry Level through Executive / C-Suite). The severance pay calculator applies a job level multiplier - higher-level positions typically receive enhanced severance packages. For executives, a 3x multiplier is common, meaning each year of service counts for three weeks of severance.
2. Select Jurisdiction & Formula: Choose your jurisdiction from the available presets - US Common Law, US WARN Act, UK Statutory, EU General, or Custom Formula. Each preset comes with its own weeks-per-year rate and maximum cap. For example, US at-will typically uses 1 week per year with a 26-week cap, while UK statutory ranges from 0.5 to 1.5 weeks per year depending on age, capped at 30 weeks. Choose between lump-sum payment or salary continuation, and optionally enter your state's maximum weekly unemployment benefit for accurate estimates.
3. Review the Complete Financial Picture: The calculator displays the gross severance amount, total weeks and months of severance pay, the formula applied, and a salary equivalence chart. See payment breakdowns for your chosen payout type, estimated COBRA health insurance costs, and unemployment benefit estimates. The total estimated income during transition shows the combined value of severance and unemployment benefits.

• Weeks per Year of Service: The core multiplier of any severance formula. Common rates range from 0.5 weeks (UK statutory for under-22s) to 3 weeks (executive packages). The severance pay calculator uses jurisdiction-specific default rates and allows custom values for tailoring to specific company policies.
• Job Level Multiplier: Higher-level positions typically qualify for enhanced severance. Individual contributors receive a 1x multiplier, managers 2x, directors 2.5x, and executives 3x. This reflects the increased difficulty of finding equivalent positions and the greater responsibility of senior roles.
• Maximum Cap: Most severance formulas have a maximum number of weeks regardless of tenure. US at-will plans often cap at 26 weeks (6 months), while UK statutory caps at 30 weeks. Executive packages may have higher or no caps. The calculator shows when the cap has been applied to your calculation.
• Payout Type: Severance can be paid as a lump sum (one-time payment, often preferred for clean separation) or salary continuation (regular payments over the severance period, which may affect unemployment eligibility depending on the jurisdiction).

The severance pay calculator produces analytical estimates based on common formulas and jurisdiction standards - not a binding calculation or legal advice. Actual severance packages vary significantly based on company policy, employment contracts, collective bargaining agreements, negotiation outcomes, and specific termination circumstances. COBRA estimates use a simplified national average (~$600/month for individual coverage) and may differ from your actual plan costs. Unemployment benefit estimates are approximate and subject to state-specific eligibility rules, waiting periods, and maximum benefit caps. All calculations run entirely client-side in your browser - no data is sent to any server, no signup required, and no employment information ever leaves your device. Consult with HR, a severance attorney, or financial advisor before making decisions based on these estimates.