About SeveranceCalc
Helping workers understand and negotiate severance packages with data-driven estimates and educational resources.
Our Mission
Most employees receive a severance offer with no context for whether it's fair. SeveranceCalc was built to change that. We provide free, transparent severance estimates so workers can make informed decisions during one of the most stressful moments of their careers.
We believe every worker deserves to know what typical severance looks like for their situation, before they sign anything.
Our Methodology
Our calculator produces low, typical, and high severance estimates based on multiple factors. Here's how we calculate each component:
Base Formula
Severance = Weekly Pay × Years of Service × Industry Multiplier × Position Multiplier
The most common industry standard is 1-2 weeks of pay per year of service, as documented by the U.S. Department of Labor.
Industry Multipliers
We apply industry-specific multipliers based on published compensation surveys and Bureau of Labor Statistics (BLS) data on employer-provided benefits. Technology and finance typically offer 2-4 weeks/year, while retail may offer 0.5-1 week/year.
Tax Calculations
After-tax estimates use the IRS Publication 15 supplemental wage withholding rate (22% federal for 2026) plus state-specific income tax rates sourced from each state's department of revenue.
State-Specific Rules
We track state laws including WARN Act variations, mandatory severance requirements, and unemployment benefit interactions. Sources include individual state labor departments and the federal WARN Act guidelines.
Our Data Sources
SeveranceCalc relies on authoritative government and industry sources to ensure accuracy:
- •U.S. Department of Labor (DOL): Federal severance pay guidance and WARN Act requirements
- •Internal Revenue Service (IRS): Supplemental wage withholding rates and tax treatment of severance
- •Bureau of Labor Statistics (BLS): National Compensation Survey data on employer benefits
- •State Labor Departments: State-specific employment laws, tax rates, and WARN Act variations
- •Equal Employment Opportunity Commission (EEOC): OWBPA guidance for workers 40 and older
How We Update The Site
We update evergreen pages when withholding rates, state severance rules, WARN thresholds, or source guidance change. Time-sensitive reporting and layoff coverage are updated separately from the calculator methodology.
If a figure on the site is modeled rather than directly stated in a source, we treat it as an estimate and describe the assumption behind it. We do not treat modeled values as statutory entitlements.
Editorial Principles
- •We explain what is sourced directly and what is estimated from broader market patterns.
- •We separate entitlement questions from tax-withholding estimates so users do not confuse the two.
- •We avoid presenting calculators as substitutes for contract review, payroll advice, or legal advice.
- •We welcome correction requests when a public source changes or a page no longer reflects current guidance.
Important Disclaimers
This is not legal advice.SeveranceCalc provides estimates for informational purposes only. Actual severance pay depends on your employer's policies, employment contract, collective bargaining agreements, and applicable federal and state laws.
We strongly recommend consulting with a qualified employment attorney to review your specific situation and severance agreement before signing.
Contact Us
Questions about our methodology, a factual correction, or a page you think is out of date? Reach us at [email protected] or use the contact form.
When reporting an issue, include the page URL and, if possible, the public source you want us to review.