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Severance Package Analyzer Calculator

Severance adequacy from tenure, position, and market.

About this calculator

This calculator compares an actual severance offer against an industry-benchmark offer built from your years of service and role level, then expresses the gap as a 0-100 adequacy score. The benchmark assumes a weeks-per-year-of-service rate that rises with seniority — 1.5 weeks for individual contributors, 2 for managers, 3 for directors, 4 for VP and above — multiplied by your tenure, plus roughly two months of COBRA coverage per year of service (capped at 18 months) and a flat $5,000 assumed value for outplacement services. Your actual offer is built the same way from what you entered: cash severance (weekly pay times offered weeks), employer-paid COBRA months times monthly cost, and $5,000 if outplacement is included. The adequacy score is simply your offer's total value divided by the benchmark's, capped at 100 — so a score of 60 means the offer covers about 60% of what someone with your tenure and role would typically be offered.

Two things push past a simple offer-vs-benchmark comparison: unvested equity you'd forfeit by signing is tracked separately as a straight loss, and the calculator estimates a "true cost of signing" by adding that forfeited equity to a flat 25%-of-salary placeholder for the legal claims you give up when you sign a release — a rough stand-in for case strength that doesn't reflect any specific facts of your situation. The recommended counteroffer is the benchmark total plus half your unvested equity value, meant as a reasonable opening ask rather than a guaranteed number. Severance benchmarks vary enormously by industry, company size, and negotiating leverage, and "industry standard" is a loose convention, not a legal entitlement in most cases — use the adequacy score to sense whether an offer is thin, not as proof of what you're owed.

Inputs

Results

Adequacy score (0-100)

61

Total offered value ($)$13,338.46
Benchmark total ($)$21,817.31
Negotiation gap ($)$8,478.85
Severance pay ($)$11,538.46
COBRA benefit value ($)$1,800.00
Net offer value ($)-$5,411.54
Recommended counter ($)$21,817.31
How to Use This Calculator
  1. Enter Annual Salary and Years of Service.
  2. Set Offered Severance Weeks — industry standard is 1–2 weeks per year of service.
  3. Enter COBRA Months Offered and Monthly COBRA Cost.
  4. Set Unvested Equity Value and indicate if Outplacement is included.
  5. Select Role Level — executives typically receive more generous severance than individual contributors.
  6. Review Total Package Value and compare against the market standard for your industry and tenure.

How the result changes with Offered severance weeks

Offered severance weeksAdequacy score (0-100)
435
648
1288
20100

What each input means

Annual salary ($)
Your annual base salary.
Years of service
Total years employed with this company.
Offered severance weeks
Number of weeks of pay offered in the severance package.
COBRA months offered
Months of employer-paid COBRA health insurance continuation.
Monthly COBRA cost ($)
Monthly cost of COBRA health insurance.
Unvested equity value ($)
Value of stock/options you would forfeit by leaving.
Outplacement included? (0/1)
Whether outplacement career services are included.
Role level (0-3)
0=Individual contributor, 1=Manager, 2=Director, 3=VP/C-suite.

What each result means

Adequacy score (0-100)
How the offer compares to industry benchmarks for your tenure and role.
Total offered value ($)
Cash severance + COBRA + outplacement services.
Benchmark total ($)
Industry-standard severance for your tenure and role level.
Negotiation gap ($)
Difference between benchmark and offer — room to negotiate.
Severance pay ($)
Cash value of offered severance weeks.
COBRA benefit value ($)
Value of employer-paid COBRA continuation.
Net offer value ($)
Offered value minus estimated value of claims you release.
Recommended counter ($)
Suggested counteroffer based on benchmarks and equity.

How this is calculated

Worked example, using the default values

  1. Identify Input Parameters
    4 parameters
    Annual salary ($) = 75000, Years of service = 5, Offered severance weeks = 8, COBRA months offered = 3 = 8 input(s) provided
  2. Calculate Adequacy score
    Adequacy score = min(100, round(adequacyRatio * 100))
    61 = 61
  3. Calculate Total offered value
    Total offered value = severancePay + cobraBenefit + outplacementValue
    13338.46 = $13,338.46
  4. Calculate Benchmark total
    Benchmark total = benchmarkSeverance + benchmarkCobra + 5000
    21817.31 = $21,817.31

Engine last updated . Checked against 4 independently-derived tests — how we verify calculators. Built by Paul Gunder, a software engineer, not a licensed financial, medical, or legal professional.

Frequently Asked Questions

How is the benchmark severance amount calculated for my role?

The calculator looks up a weeks-per-year-of-service rate based on your role level — 1.5 weeks for individual contributors, 2 for managers, 3 for directors, 4 for VP and above — and multiplies it by your years of service to get benchmark weeks, then converts that to dollars using your weekly pay. It also adds an assumed two months of COBRA coverage per year of service (capped at 18 months) and a flat $5,000 for outplacement, since the benchmark assumes a fuller package than a bare-bones offer.

What exactly does the adequacy score of, say, 60 mean?

It means your total offered value (cash severance plus offered COBRA months plus outplacement if included) comes to about 60% of the benchmark total built from your tenure and role level. The score is computed as adequacyRatio times 100, capped at 100, so it can tell you an offer is thin relative to the benchmark but it can't exceed 100 even if your actual offer is unusually generous.

Why does unvested equity get treated separately from the adequacy score?

Unvested equity you'd forfeit by signing isn't part of the offer-vs-benchmark comparison at all — it's tracked as a straight loss in the "true cost of signing" calculation, added to a flat 25%-of-salary placeholder for the legal claims you give up by signing a release. This keeps the adequacy score focused on comparing offered severance pay to typical severance pay, while equity forfeiture and claims value show up separately in the net offer value.

How is the recommended counteroffer amount derived?

It's the benchmark total (industry-standard severance for your tenure and role) plus half of your unvested equity value, on the reasoning that asking for full equity acceleration is a stretch but asking for partial acceleration alongside a benchmark-level severance package is a reasonable opening position. It's meant as a starting point for negotiation, not a number with any legal backing.

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