Rex says
The number HR says out loud is the gross. What matters is what's left after the supplemental tax rate, and how many months of runway that actually buys you.
Try a scenario
Click to load — tweak from there.Inputs
Typical US packages run 1–4 weeks per year. Check your offer letter or severance policy.
Enter 0 for no cap.
Result
Gross severance package
$24,846
Weeks of pay
12.0
Severance portion
$21,923
PTO payout portion
$2,923
Estimated withholding (22% fed + FICA)
$7,367
Estimated take-home
$17,479
Months of runway it buys
4.2
Roughly 4.2 months of runway. Tight but workable — file for unemployment the week your pay ends, since severance timing affects when benefits start in most states.
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How to use this
- 1Enter annual base salary ($).
- 2Enter years of service.
- 3Enter weeks of pay per year of service — Typical US packages run 1–4 weeks per year. Check your offer letter or severance policy..
- 4Enter minimum weeks guaranteed.
- 5Enter cap on total weeks — Enter 0 for no cap..
- 6Enter unused pto days paid out.
- 7Enter prorated bonus or extras ($).
- 8Enter your monthly expenses ($).
- 9Read your gross severance package on the right — it updates as you type.
- 10Hit Share to keep the scenario or send it to someone.
About this calculator
Most US severance is a formula: some number of weeks of pay for every year you worked, sometimes with a floor and a cap. This calculator turns that formula into real dollars, adds unused PTO and any continuation of benefits, then applies the 22% federal supplemental withholding rate most employers use on severance so you see the net, not the headline.
Worked example
Using the values the calculator loads with:
Inputs
- Annual base salary: 95000 $
- Years of service: 6
- Weeks of pay per year of service: 2
- Minimum weeks guaranteed: 4
- Cap on total weeks: 52
- Unused PTO days paid out: 8
- Prorated bonus or extras: 0 $
- Your monthly expenses: 4200 $
Results
- Gross severance package: $24,846.15
- Weeks of pay: 12
- Severance portion: $21,923.08
- PTO payout portion: $2,923.08
- Estimated withholding (22% fed + FICA): $7,366.88
- Estimated take-home: $17,479.27
- Months of runway it buys: 4.2
What each field means
Inputs
- Annual base salary ($)
- The annual base salary used in the calculation, measured in $. Starts at 95000 $ so you have a working example on load.
- Years of service
- The years of service used in the calculation. Starts at 6 so you have a working example on load. Accepted range: 0–50.
- Weeks of pay per year of service
- Typical US packages run 1–4 weeks per year. Check your offer letter or severance policy.
- Minimum weeks guaranteed
- The minimum weeks guaranteed used in the calculation. Starts at 4 so you have a working example on load.
- Cap on total weeks
- Enter 0 for no cap.
- Unused PTO days paid out
- The unused pto days paid out used in the calculation. Starts at 8 so you have a working example on load.
- Prorated bonus or extras ($)
- The prorated bonus or extras used in the calculation, measured in $. Starts at 0 $ so you have a working example on load.
- Your monthly expenses ($)
- The your monthly expenses used in the calculation, measured in $. Starts at 4200 $ so you have a working example on load.
Results
- Gross severance package
- Returned as a money amount in US dollars and shown as the headline result. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Weeks of pay
- Returned as a decimal number. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Severance portion
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- PTO payout portion
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Estimated withholding (22% fed + FICA)
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Estimated take-home
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Months of runway it buys
- Returned as a decimal number. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
FAQ
Is severance pay required by law in the US?
No. Outside of a contract, a union agreement, or a mass-layoff notice law like the federal WARN Act, no US employer is required to pay severance. Most packages are voluntary and offered in exchange for a signed release of claims — which is exactly why they're negotiable.
How is severance taxed?
Severance is wages. Employers usually withhold federal tax at the 22% supplemental rate (37% on amounts over $1 million), plus Social Security, Medicare, and state tax. Withholding is not your final bill — if your total year's income lands in a lower bracket, you get some of it back at filing.
Can I collect unemployment while receiving severance?
It depends on your state and how the money is paid. States that treat severance as wages allocated to specific weeks will delay your benefits until that period ends. States that treat a lump sum as a one-time payment often let you claim right away. File as soon as you're separated and let the state decide.
Can I negotiate a severance offer?
Usually yes, and it's expected. The most commonly granted asks are additional weeks, a longer employer-paid health coverage window, keeping unvested equity that's close to vesting, a neutral or positive reference, and removing a non-compete. Ask for the offer in writing and take the review period you're entitled to.
What is a typical severance formula?
One to two weeks of pay per year of service is the most common US range, with senior and executive roles seeing three to four weeks per year plus bonus treatment. Many policies add a floor (often four weeks) and a cap (often 26 or 52 weeks).
Accuracy and limitations
- Results are estimates before tax, fees, and inflation unless an input explicitly covers them.
- Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.
- This is educational maths, not financial advice. Check anything contractual with the lender or your accountant.
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What lands in your California bank account after federal, state, and FICA.
Cite this calculator
Writing about this topic? Grab a citation — every link helps keep these tools free.
RevenueLab. (2026). Severance Pay Calculator — What Your Package Is Worth (2026). Retrieved from https://www.revenuelab.fyi/toolbox/severance-pay-calculator
<p>Source: <a href="https://www.revenuelab.fyi/toolbox/severance-pay-calculator" target="_blank" rel="noopener">Severance Pay Calculator — What Your Package Is Worth (2026) — RevenueLab</a> (2026).</p>
Source: [Severance Pay Calculator — What Your Package Is Worth (2026) — RevenueLab](https://www.revenuelab.fyi/toolbox/severance-pay-calculator) (2026).