Severance Pay Calculator
Work out severance pay instantly with clear inputs, formula shown and shareable results.
About Severance Pay Calculator
Severance is usually a set number of weeks of pay per completed year of service. Expressing it in months of salary is the useful comparison, since that is how long it will actually fund living costs.
Formula
Severance
Gross = weekly pay × weeks per year × years of service
Worked example
With the default values below, Severance Pay Calculator returns Severance After Tax of $258,461.54. Change any input above and every figure here is recalculated in your browser.
Inputs used
- Monthly Salaryminimum 0
- 100,000
- Completed Years Of Serviceaccepts 1–45
- 8
- Weeks Of Pay Per Year Of Serviceaccepts 0.5–6
- 2
- Marginal Tax Rateaccepts 0–60 %
- 30 %
Results
- Severance After Tax
- $258,461.54
- Gross Severance
- $369,230.77
- Tax On Severance
- $110,769.23
- Equivalent Months Of Salary
- 3.69 months
Step by step
- 1Values used
- 2Severance
- 3Severance After Tax= 258,461.54
- 4Gross Severance= 369,230.77
- 5Tax On Severance= 110,769.23
- 6Equivalent Months Of Salary= 3.69 months
Assumptions and limits
- The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
- In particular, this calculator does not take inflation or fees or charges into account.
- Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
- Tax figures are estimates based on the rates, caps and thresholds you enter. Real rules differ by jurisdiction and change every year, and personal circumstances alter the outcome. This is not tax or financial advice — confirm with a qualified adviser.
- This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.
How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.
Tax figures are estimates based on the rates, caps and thresholds you enter. Real rules differ by jurisdiction and change every year, and personal circumstances alter the outcome. This is not tax or financial advice — confirm with a qualified adviser.
Frequently Asked Questions
Is severance taxable?
Often partly exempt up to a statutory limit for genuine redundancy, with the balance taxed as income — rules vary.
Does statutory severance replace contractual notice?
No. Notice pay and redundancy compensation are separate entitlements and both may apply.