Estimator

Severance Calculator

Estimate a layoff severance payout from biweekly pay and length of service — two weeks for the first six months, plus one week for every additional complete six-month period, capped at 72 weeks.

Enter your biweekly pay, not your weekly pay.
Length of service
Auto-suggested from your months of service; you can change it.
Taxes (optional)
Default 22% is the IRS flat rate for supplemental wages like severance.
Select a state to load its rate below.
$0
Estimated total pre-tax severance
Weekly pay
Months of service (used)
Complete 6-month periods
Severance weeks (tenure-based)
Tenure-based severance
Dismissal indemnity
Total pre-tax severance
Tenure-based portion capped at the 72-week maximum.
$0
Estimated take-home after federal & state withholding
Total pre-tax severance
Federal tax withheld
State tax withheld
Net severance pay

2 weeks for the first 6 months of service, plus 1 week for each additional complete 6-month period, up to a maximum of 72 weeks. Only full 6-month periods count. Dismissal indemnity, when included, adds a flat amount on top per contract based on years of service — 2 weeks (under 5 years), 4 weeks (5–9 years), 6 weeks (10–14 years), or 8 weeks (15+ years) — and is not subject to the 72-week cap.

Note: this estimate excludes the additional 3 weeks' pay in lieu of notice, unused PTO, and any economic differential, if applicable. It also does not include FICA (Social Security & Medicare), which still applies to severance.
On tax rates: the federal default (22%) is the IRS flat withholding rate for supplemental wages. State rates are rough, editable defaults, not exact withholding tables — actual state supplemental withholding rules vary (flat rate, aggregate with regular pay, or none). Some states have no income tax.
Disclaimer: this tool is for estimation only and cannot guarantee accuracy. It is not tax or legal advice.