SEVERANCE PACKAGE CALCULATOR · RUNS IN YOUR BROWSER · NOTHING UPLOADED

Got a severance offer? See if it is fair, what you net, and what to ask for.

Type the offer and your situation. The tool compares the weeks to the usual one-to-two weeks per year of service, shows your take-home as a lump sum now, a lump sum in January or salary continuation, prices the health coverage gap, flags unemployment benefits at risk, and lists what to negotiate before the signing deadline.

Arithmetic on assumptions you type. Not legal, tax or financial advice. The example figures are placeholders, not your offer; rates are inputs you should check.

1. The offer

2. Owed on your last day

3. Tax

4. Health, unemployment and runway

5. Dates (optional)

Add the dates you know to get your signing, revocation, vesting and COBRA deadlines as a calendar.

Questions people ask

What is a normal severance package?

There is no legal formula in the US. The common rule of thumb is one to two weeks of base pay per year of service, often with a floor of a few weeks and a cap, and more for senior roles or for a package that asks you to waive claims. Executives and groups laid off together are often offered more. Use the tool's benchmark as a negotiating anchor, not an entitlement.

Is severance pay taxed more than regular pay?

It is wages. Federal income tax is usually withheld at the flat 22% supplemental rate on a lump sum (37% on supplemental wages over $1 million in a year), and Social Security and Medicare apply as normal. Your actual tax is at your marginal rate, so withholding at 22% can leave you with a refund or a bill when you file. The tool shows the gap.

Is it better to take severance as a lump sum or salary continuation?

It depends on the tax year and the rest of your situation. A lump sum in December lands on top of this year's wages; the same amount in January lands in a year when you may have less income. Salary continuation keeps you on payroll but may delay unemployment benefits and ends when you start a new job if the agreement says so. The tool compares the net of each.

Does severance affect unemployment benefits?

In many states it can. Some treat severance as wages for the weeks it covers and delay benefits until then; others ignore a lump sum. Check your state agency before you pick a payout shape.

What should I negotiate besides the number of weeks?

COBRA premiums for the months you need, acceleration of unvested equity, a longer exercise window for options, a pro-rata bonus, a neutral reference, a release of or narrowing of any non-compete, and time to review. Many employers will move on these, and they cost the company less than cash.

Do I have time to think before I sign?

Often yes. If you are 40 or older, federal law requires at least 21 days to consider a release (45 for a group layoff) and 7 days to revoke it. Anyone can ask for more time in writing. Do not sign at the meeting.

Is this legal advice?

No. It is arithmetic on figures you type plus a checklist of common terms. Employment law varies by state. A short consultation with an employment lawyer is cheap compared to what you are signing away.

Not decided

Whether your release is enforceable, whether you have a discrimination or wage claim, your state's unemployment rules, WARN Act notice pay, 401(k) and equity plan terms, the additional 0.9% Medicare tax, state-specific supplemental withholding rates, and whether any specific counter-offer is realistic at your employer. Rates and rules change.

Related tools: the COBRA vs marketplace calculator, the final paycheck deadline calculator and the RSU withholding gap calculator.