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Severance Pay Calculator

Estimate a severance package from weeks per year of service, with pro-rated partial years, caps, pay in lieu of notice and accrued leave payout.

$1,000.00
Weekly pay used
10.50 yrs
Service counted
21.00
Severance weeks
$21,000.00
Severance pay
ComponentBasisAmount
Severance21.00 weeks × $1,000.00$21,000.00
Pay in lieu of notice4.00 weeks × $1,000.00$4,000.00
Accrued leave payout12.0 days × $200.00$2,400.00
Other lump sumsAs entered$0.00
Total gross package27.4 weeks of pay$27,400.00
$27,400.00
Total gross package
27.4
Equivalent weeks of pay
6.3
Equivalent months of pay

Severance here is weekly pay × (years of service × your per-year formula), converted to weeks whichever unit your contract uses. Weekly pay comes from the basis you chose: annual ÷ 52, monthly × 12 ÷ 52, or hourly rate × weekly hours. Accrued leave is valued at weekly pay ÷ working days per week. There is no universal severance formula — statutory minimums, notice periods, caps and whether partial years count differ by country, state and contract, and many places have no statutory severance at all. Every factor above is an input for exactly that reason. Figures are gross, before income tax and payroll deductions, which often treat severance differently from salary. This is an estimate, not legal or tax advice — check your contract and your local employment law. Nothing you enter is uploaded.

What is the Severance Pay Calculator?

Severance is almost always expressed as an amount of pay per year of service — most commonly a number of weeks.

  • Weekly pay derived from annual, monthly, weekly or hourly figures
  • Formula in weeks, months or days of pay per year of service
  • Optional pro-rating of the final partial year
  • Cap in weeks with a clear notice when it bites
  • Notice pay in lieu, accrued leave payout and other lump sums included
  • Total shown in currency, equivalent weeks and equivalent months of pay

How to use the Severance Pay Calculator

  1. 1

    Choose how your pay is quoted — annual, monthly, weekly or hourly — and enter the amount.

  2. 2

    Enter completed years of service plus any additional months.

  3. 3

    Set the formula: weeks, months or days of pay per year of service, and whether partial years pro-rate.

  4. 4

    Add a cap in weeks if one applies, plus notice weeks and unused leave days.

  5. 5

    Read the component table for severance, notice, leave payout and the total gross package.

About the Severance Pay Calculator

Severance is almost always expressed as an amount of pay per year of service — most commonly a number of weeks. This calculator takes your pay in whatever form you have it, converts it to a weekly figure, applies the per-year formula from your contract, and adds notice pay in lieu, an accrued leave payout and any other lump sums into one total.

There is no universal severance formula, so nothing here is hardcoded. Weeks per year, whether partial years are pro-rated, whether a cap applies and how many days a week you work are all inputs you set from the contract or statute that governs your situation.

Figures are gross, before income tax and payroll deductions, which often treat severance differently from ordinary salary. This is an estimate for planning a conversation or checking an offer, not legal or tax advice — read your contract and your local employment law before relying on it. Every calculation happens inside your browser, so salary and service details are never uploaded or stored.

Frequently asked questions

How is severance pay calculated?

The usual method is weekly pay multiplied by a set number of weeks for each year of service. Two weeks per year over ten years at 1,000 a week gives 20 weeks, or 20,000. The multiplier comes from your contract, a collective agreement or statute — there is no universal figure.

Is severance pay required by law?

It depends entirely on where you work. Some countries mandate statutory severance with a fixed formula, others require only notice, and in many places it is purely contractual. That is why every factor in this calculator is editable rather than assumed.

Do partial years of service count toward severance?

Sometimes. Many statutory schemes pro-rate the final partial year while some contracts only count completed years. Tick or untick the pro-rating box above to see the difference — it can be worth several weeks of pay on a long tenure.

Is pay in lieu of notice part of severance?

They are separate entitlements. Notice pay compensates you for the notice period your employer chose not to work out; severance compensates for the loss of the job itself. Many packages include both, so the calculator totals them separately and together.

Is severance pay taxed?

Usually yes, but often under different rules from ordinary salary — some jurisdictions apply a special rate, an exemption threshold or a spreading provision. The totals here are gross, before any deduction. Ask a tax adviser about the treatment where you live.

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