Severance agreement calculator

Estimates only. Severance norms vary by industry, company size, and circumstances. This tool provides general benchmarks for comparison - an employment attorney reviews your actual offer and any release language before you sign. See our full disclaimer.

Severance offer calculator

Your employment details

Annual salary ($)

Years of service

Role level

Reason for termination

Your current offer

Severance offered (weeks of pay)

COBRA subsidy offered (months) Months of employer-paid health insurance continuation, if any.

Unused PTO/vacation days to be paid out

Outplacement services included?

Your severance offer analysis

Get an employment attorney review - free

An employment attorney reviews your severance agreement's release language, non-compete or non-disparagement clauses, and negotiates for improved terms before you sign. Many severance negotiations are resolved with a single attorney letter.

What is a typical severance package?

There's no legal requirement for severance pay in most circumstances - it's a matter of company policy or negotiation, not a guaranteed right (unless promised in an employment contract or required by a mass layoff law like the WARN Act). That said, common benchmarks exist: 1 to 2 weeks of pay per year of service is a frequently cited baseline, with more generous packages at senior levels or larger companies.

Beyond base severance pay, a complete package can include: COBRA health insurance subsidy for a period of months, payout of accrued but unused PTO, outplacement career services, extended equity vesting or exercise windows for stock options, and a neutral employment reference agreement.

If you're weighing whether the termination itself may have been unlawful before deciding whether to accept a severance offer, check the wrongful termination screener - a valid legal claim significantly increases your negotiating leverage.

What are you giving up when you sign a severance agreement?

Nearly every severance agreement includes a release of claims - you agree not to sue the company for anything related to your employment or termination, in exchange for the severance payment. This typically covers discrimination, wrongful termination, wage claims, and other employment-related legal claims you might otherwise have.

If you're 40 or older, the Older Workers Benefit Protection Act requires specific procedural protections for a valid release of age discrimination claims: at least 21 days to consider (45 for group layoffs), a 7-day revocation period after signing, and advice to consult an attorney. A release that doesn't meet these requirements may not validly waive your age discrimination claims even if you sign it.

Before signing away your rights, it's worth understanding what those rights might be worth - use the wage theft calculator to check for any unpaid wage issues, since a severance release typically waives those claims too.

What other clauses commonly appear in severance agreements?

Non-disparagement clauses restrict what you can say about the company publicly, and sometimes what the company can say about you - though these are increasingly limited in enforceability regarding factual statements about illegal conduct in some states. Confidentiality clauses often require you to keep the severance amount and terms private.

Some agreements also include or reaffirm non-compete and non-solicitation provisions from your original employment agreement - check the non-compete enforceability checker if these terms seem broader than what you originally agreed to, since severance negotiations are a good opportunity to narrow or eliminate restrictive covenants in exchange for signing.

Frequently asked questions

Generally no, unless promised in an employment contract, described in an employee handbook in a way that creates an enforceable expectation, or required under specific circumstances like the federal WARN Act, which requires 60 days advance notice (or pay in lieu of notice) for mass layoffs at covered employers. Most severance is discretionary and often used strategically by employers to secure a release of legal claims in exchange for payment - meaning the severance offer itself is frequently more negotiable than employees assume, since it wasn't a guaranteed entitlement to begin with.

Yes, in most cases, even though severance offer letters are often presented as take-it-or-leave-it. Common negotiation points include: increasing the number of weeks of pay, extending the COBRA subsidy period, adding or increasing outplacement services, negotiating a longer consideration period, softening or narrowing non-compete or non-disparagement language, and securing a neutral or positive reference agreement. Leverage varies based on your situation - having a potential legal claim (discrimination, retaliation, wage violations) significantly strengthens your negotiating position, but even without one, many companies have some flexibility to avoid the cost and uncertainty of a dispute.

If you're 40 or older and the release includes age discrimination claims, federal law requires at least 21 days to consider (45 days for group layoffs affecting multiple employees) and a 7-day revocation period after signing. For employees under 40 or releases that don't involve age claims, there's no federal minimum consideration period, though many companies still provide a reasonable window. Never feel pressured to sign immediately - use the full consideration period to review the agreement, consult an attorney, and negotiate if appropriate.

It depends on your state and how the severance is characterized. Some states delay or reduce unemployment benefits during the period covered by a lump-sum severance payment, treating it similarly to continued wages. Other states don't offset unemployment benefits against severance at all. How the payment is structured (lump sum vs. salary continuation) can also matter. Check with your state's unemployment office before assuming severance and unemployment benefits will simply stack on top of each other without any interaction.

Strongly recommended, particularly for higher-value packages or if you have any concerns about how your termination was handled. An attorney can identify whether the release is properly drafted (especially the OWBPA requirements if you're 40+), whether restrictive covenants are enforceable, whether the severance amount is reasonable given your situation, and whether you might have a claim worth more than what's being offered. Many employment attorneys offer a flat fee for severance review that's often a small fraction of the total severance value, and some companies even reimburse a limited amount for attorney review as part of the offer.