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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.
Set your weeks-of-pay-per-year-of-service formula once, with any floor or cap, 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. A one-page Summary rolls headcount, total severance, and the all-in cost onto one page, a Notice and Timeline tab adds screening prompts and date math for notice and release planning, a Benchmark tab shows typical severance by role level, and it opens on a worked example so the logic is clear before you change anything. Duplicate the file to compare two policies side by side.
A severance number only holds up if the policy is applied the same way to everyone and the cost is the loaded cost. 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. 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, not base pay alone.
If you are looking for a quick estimate for one person, the free Severance Pay calculator returns a single package in your browser. For the full financial picture of a reduction, the cost, the ongoing savings, and the payback, see the RIF and Restructuring Savings Planner.
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 compare two policies side by side. Checkout delivers an instant download link, with the same link emailed on your receipt.
What does the paid workbook do that the free severance calculator does not?
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 behind the number. The free calculator estimates one person’s package; this plans the whole group and keeps the file.
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 Notice and Timeline tab 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. 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. Questions? Email support@truestephr.com.
These are planning estimates, 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.
How the download works
Your files arrive as a single ZIP download, best opened on a computer: save it, extract it (right-click and Extract All on Windows, double-click on a Mac), and open the Start Here file first. PDFs open in any reader, and the editable files work in Microsoft Word and Excel or their free equivalents, including LibreOffice and Google Docs and Sheets. No other software is needed. Step-by-step help for every device is at truestephr.com/pages/download-help.
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