Severance Planning Calculator

Plan severance for a whole reduction in one file. Set your weeks-per-year policy once, list everyone affected, and the workbook totals each package and the cost across the group, with accrued time off, benefits, and outplacement on top.

One Excel workbook that plans severance across a reduction

A working model, not a blank grid. You set one policy, list everyone affected, and the workbook totals each package and the cost across the group. It opens on a filled-in example so the math is clear before you change anything.

• Severance Planning Calculator. Set your weeks-of-pay-per-year-of-service formula once, then list every affected employee with their salary and years of service. Each person’s severance computes from the policy, and accrued time off, benefits continuation, outplacement, and an approximate employer payroll tax add on top. The workbook subtotals by employee and totals the cost across the whole reduction, so you see each package and the group cost in one place.
• A board-ready summary and a worked example. The summary rolls the reduction onto one page: headcount, total severance, and the all-in cost with the extras included. A Notice and Timeline tab adds screening prompts and date math for notice and release planning, labeled as a planning aid and not a legal determination, and a Benchmark tab shows typical severance by role level. The file opens on a worked example with several employees planned under one policy, and the workbook documents how every number is built, so you can hand the summary to finance or leadership and explain it. Duplicate the file to compare two policies side by side.

Three steps from a policy to a planned cost

You set the policy once, list everyone affected, and the totals tell you what the reduction costs all-in.

• Set your policy. Enter your weeks-of-pay-per-year-of-service formula and any floor or cap. It applies to everyone on the list, so the package stays consistent.
• List who is affected. Add each employee with their salary and years of service. Each person’s severance computes from the policy, with accrued time off, benefits, and outplacement on top.
• Read the total. The summary rolls headcount, total severance, and the all-in cost onto one page. Change the policy and the whole model updates, so you can test options before you commit.

Severance planned the way it gets decided

A severance number only holds up if the policy is applied the same way to everyone and the cost is the loaded cost, so the workbook keeps both on the surface.

• One policy applied consistently. The weeks-per-year formula and any caps apply to every employee on the list, so the package does not drift from person to person, which is what a defensible reduction needs.
• The loaded cost, not base severance. Accrued time off, benefits continuation, and outplacement add on top of the base payout, so the number you plan around is the real cash cost of the reduction.
• A worked example to start from. The file opens with several employees planned under one policy, so you can see the model working end to end before you replace it with your own list.

Who it is built for

Built for

• An HR lead or owner planning a layoff or a single separation, who needs the cost before the conversation.
• A finance or HR partner pricing a reduction for budget or board approval, who wants every package and the group total in one file.
• A consultant or fractional HR lead who plans reductions for clients and wants the formula consistent and the cost documented.

If you are looking for

• A quick estimate for one person, not a planning file. The free Severance Pay calculator returns a single package in your browser.
• The full financial picture of a reduction, beyond severance. The RIF and Restructuring Savings Planner models the cost, the ongoing savings, and the payback of the whole restructure.

Before you buy

What format is it and can I edit it?

It is one Excel workbook that also works in Google Sheets. Every input and formula is editable, and the file is yours to keep. Duplicate it to plan a second reduction or to compare two severance policies side by side.

There is a free severance calculator on this site. Why pay for this one?

The free tool estimates one person’s package in your browser and resets when you close the tab. This workbook plans a whole reduction: list every affected employee under one policy, and it totals each package and the cost across the group, with accrued time off, benefits, and outplacement on top, then rolls it onto a board-ready summary. You set your assumptions once, keep the file, reuse it for the next reduction, and read every formula instead of trusting a number.

How accurate is it and does it handle the legal side?

The math is only as good as the policy and the figures you enter, so treat the output as a planning estimate. It does not give legal advice. In most cases there is no legal requirement to pay severance; your policy or a contract sets the terms. A reduction can trigger notice rules such as the federal WARN Act, final-pay timing, release agreements, and protected-group considerations that vary by your size, location, and circumstances. The workbook includes a Notice and Timeline tab with screening prompts and date math for planning, but it is a planning aid and not a legal determination, so review any reduction with an employment attorney before you act.

Does it include accrued time off, benefits, and outplacement?

Yes. On top of the base severance from your formula, the workbook adds the value of accrued, unused time off, employer-paid benefits continuation for the months you set, outplacement if you offer it, and an approximate employer payroll tax on the severance, so the planned cost is the loaded cash cost rather than base pay alone. Leave any line at zero if it does not apply.

What is the refund policy?

Digital products are covered by a 14-day money-back guarantee. See the refund policy for the full terms.

What happens after I buy?

Checkout delivers an instant download link, and a receipt with the same link arrives by email. Open the workbook in Excel or Google Sheets, set your weeks-per-year policy, and add the affected employees. If a file gives you trouble, email support@truestephr.com.

Planning estimates and general business information, not legal or tax advice. Severance is generally set by your policy or a contract rather than by law, and a reduction can trigger notice, release, and protected-group requirements that vary by size and location, so review sensitive decisions with a qualified professional. Last reviewed June 2026.