Layoff and separation planning

Severance Package Calculator

Estimate the value of a severance package after a layoff, role elimination, resignation agreement, or separation offer. Compare severance weeks, PTO payout, bonus, health coverage support, tax buffer, and how many months of financial runway the package may provide.

Severance pay PTO payout Health coverage support Tax buffer Financial runway
Estimate severance value Job offer hub Negotiation calculator PTO value
Educational estimate only. Severance terms, PTO payout rules, final wage timing, release agreements, unemployment eligibility, COBRA, non-compete terms, and taxes vary by employer, plan, contract, state, and country. Review the written agreement and consider professional advice before signing.

What this calculator answers

Severance is more than weeks of pay. The real package can include unused PTO, bonus treatment, health insurance support, outplacement, release terms, and tax withholding.

How much is the severance package worth?Add severance pay, PTO, bonus, healthcare support and other cash-like value. How long can it cover expenses?Estimate after-buffer cash and months of runway. What should I verify before signing?Check release, claims, benefits, clawback, restrictive covenants and payout timing.

Estimate severance package value

Use your written offer or a common company-policy formula. The calculator does not decide whether a package is fair; it organizes the cash, benefit, and runway pieces so you can review the offer more clearly.

Base severance terms

Weeks of pay
Leave as 0 if you want to use the formula estimate instead.

Other package value

PTO, bonus, healthcare
Use the amount the employer pays or reimburses, not the total premium unless that is covered.
Equipment allowance, transition support, or other written payment.
Use a conservative planning buffer. This is not a tax calculation.
Formula severance pay$0Based on service and weeks.
Package gross value$0Before tax / withholding buffer.
After-buffer cash estimate$0Planning estimate only.
PTO payout value$0Salary divided by paid work days.
Healthcare support$0Employer support entered by you.
Estimated runway0 monthsAfter-buffer cash divided by expenses.

Severance package checklist before signing

CheckWhy it matters
Is severance paid as lump sum or salary continuation?Payout timing can affect cash flow, benefits, taxes, and unemployment treatment.
What happens to unused PTO?Vacation/PTO payout rules vary by employer policy and jurisdiction. Confirm whether it is included, separate, or forfeited.
How long does health coverage support last?COBRA or continuation coverage can be expensive if the employer does not subsidize premiums.
Are bonus, commission, RSU, or equity amounts included?Unvested equity, prorated bonus, commissions, and refreshers can materially change the real separation value.
What rights or restrictions are in the release?Non-disparagement, non-solicit, non-compete, confidentiality, cooperation, and claims release terms can have value or risk beyond cash.
Is there a revocation or review period?Some agreements include review or revocation windows. Verify deadlines before signing.

How to use the result

The calculator separates formula severance, offered cash, PTO payout, healthcare support, and after-buffer planning value. Use the result to understand what the package may cover and what you may want to verify, not as a legal or tax conclusion.

If the runway is short

Compare the after-buffer estimate with your monthly expenses and job-search timeline. A short runway may make health coverage support, payout timing, or additional weeks more important.

If the package requires a release

Cash value is only one part of the decision. Review claims, restrictions, confidentiality, reference terms, bonus treatment, equity treatment, and benefit continuation before signing.

Related job offer calculators

Salary Negotiation CalculatorUse negotiation ranges if you are countering an offer or separation package terms. PTO Value CalculatorEstimate vacation and paid-time-off value separately. RSU / Equity Offer CalculatorCheck equity left behind or unvested stock treatment.
Job offer hub Job offer comparison 401(k) match Signing bonus Relocation offer

FAQ

Is severance pay required by law?

In many U.S. private-sector situations, severance is not automatically required by the Fair Labor Standards Act. It is often based on employer policy, an employment agreement, a release agreement, union terms, or state/local requirements.

Does this calculator estimate taxes?

No. It uses a user-entered tax or withholding buffer for planning. Severance, bonus, PTO payout and benefits may be treated differently depending on the payment type and jurisdiction.

Should I include COBRA or health coverage support?

Yes, if the employer pays or reimburses a specific amount. If you must pay the full premium yourself, enter only the employer-covered portion as support.

Can I use this for a buyout or voluntary separation package?

Yes, if you enter the actual cash and benefits offered. For a buyout, review deadlines, rehire restrictions, retirement eligibility, and release terms carefully.