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Severance Pay Calculator

Estimated severance from years of service and weekly pay — not a legal entitlement in most of the US.

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Last reviewed 2026-08-30

About the Severance Pay Calculator

Estimates severance pay using the commonly cited 'weeks of pay per year of service' industry convention, with an optional guaranteed-minimum floor — not a legal calculation, since most US employers aren't required to offer severance.

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How to use it
  1. Enter your weekly gross pay and years of service.
  2. Enter the weeks-of-pay-per-year rate and any guaranteed minimum.
  3. Read your estimated severance pay and total weeks.
Formula
Tenure-based weeks = years of service × weeks per year. Total weeks = max(tenure-based weeks, guaranteed minimum weeks). Severance pay = total weeks × weekly pay.
Worked example

$1,500 weekly pay, 5 years of service, at 2 weeks/year: 10 weeks, an estimated $15,000 severance.

Interpreting your result

In most of the US, there's no general legal requirement for severance — it's typically discretionary. '1-2 weeks per year of service' is a commonly cited industry convention, not a legal formula. The federal WARN Act requires 60 days' notice before a qualifying mass layoff (100+ employee employers), separate from severance itself.

Recommendations
  • Severance terms are often negotiable, especially for longer-tenured or senior employees.
  • Check your offer letter or handbook for your employer's actual formula.
  • If your layoff is part of a mass layoff, check whether WARN Act notice requirements apply.
Frequently asked questions
In most of the US, no — it's typically discretionary.
Sources
See the full methodology and sources for every finance calculator
Disclaimer

Illustrative estimate only, not financial or tax advice. Verify figures with a licensed adviser or your local tax authority.