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-time purchase, no subscription. Instant download.
Built by expert HR practitioners and leaders
- A severance package from your own policy: enter each person's salary and years of service, and your weeks-per-year formula computes their payout
- The full cost across the reduction in one place: every affected employee under one policy, subtotaled by person and totaled for the group
- Accrued time off, benefits, outplacement, and employer payroll tax on top, so the number you take to finance is the loaded cash cost, not base severance alone
- A board-ready summary that rolls the group onto one page: headcount, total severance, and the all-in cost
- Open, editable formulas in Excel or Google Sheets, with a worked example pre-filled; set your assumptions once and duplicate the file to compare policies
The workbook plans and totals the cost. The package terms and the decision to proceed are yours to set.
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.
Not the right fit? Take the 60-second match.
Last reviewed June 2026
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.
Who it's built for
Who this tool fits, and where to go if that's not you.
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?
There is a free severance calculator on this site. Why pay for this one?
How accurate is it and does it handle the legal side?
Does it include accrued time off, benefits, and outplacement?
What is the refund policy?
What happens after I buy?
Can I expense this purchase to my business?
Most customers buy TrueStep HR tools for business use, and a tool you use for work often qualifies as a deductible business expense. Whether it does for you depends on your situation, so confirm with your accountant or tax professional. Your receipt arrives by email at checkout and works as documentation.
The 6 red flags to check before you discipline or fire someone
A five-minute screen that catches the most common and most expensive people-decision mistakes before they happen. Free PDF, sent to your inbox. Unsubscribe anytime.
Put a real number on the reduction before the conversation
Every package from one policy, the group total with accrued time off, benefits, and outplacement, in a file you keep.
Planning estimates and general business information, not legal or tax advice. Last reviewed June 2026.