★ MONEY · PAY · JOB LOSS
$16,380.00 net take-home on a $21,000.00 gross package. A $78,000 salary, 6 years of service and 2 weeks a year pays $18,000.00 of severance plus $3,000.00 of unused PTO, less 22% withholding. Enter your salary and years to see your package and your net.
A severance package is two payments added together: weeks of pay for your years of service, and a payout for your unused PTO days. This calculator works out the gross severance, the PTO payout, the tax withholding and the net take-home — and the COBRA cost to budget for on top.
A severance package is usually two payments added together: the severance itself and the payout for unused paid time off. The severance is a number of weeks of pay, and the number of weeks is your years of service times the weeks per year in your severance agreement. Your weekly pay is your annual salary divided by 52. The PTO payout is your unused PTO days times your daily pay, which is your salary divided by 260 working days. Add the two for the total gross, take off tax withholding, and what is left is the net take-home. COBRA is shown as its own line: it is money you will spend on health coverage, not money taken out of the severance.
At the defaults — salary $78,000, years of service 6, weeks per year 2, unused PTO 10 days, COBRA $650 a month for 3 months, withholding 22% — the weekly pay is $78,000 ÷ 52 = $1,500.00 and the daily pay is $78,000 ÷ 260 = $300.00. The severance weeks are 6 × 2 = 12, so the gross severance is 12 × $1,500.00 = $18,000.00. The PTO payout is 10 × $300.00 = $3,000.00, so the total gross is $21,000.00. The withholding is 22% of $21,000.00 = $4,620.00, so the net take-home is $16,380.00. COBRA is 3 × $650 = $1,950.00 to budget for, leaving $14,430.00 after setting it aside.
| Case | Gross severance | Total gross | Withholding | Net take-home |
|---|---|---|---|---|
| Default ($78,000, 6 yrs, 2 wks/yr, 10 PTO days, 22%) | $18,000.00 | $21,000.00 | $4,620.00 | $16,380.00 |
| Salary $60,000 | $13,846.15 | $16,153.85 | $3,553.85 | $12,600.00 |
| Salary $120,000 | $27,692.31 | $32,307.69 | $7,107.69 | $25,200.00 |
| Years 10 | $30,000.00 | $33,000.00 | $7,260.00 | $25,740.00 |
| Years 1 | $3,000.00 | $6,000.00 | $1,320.00 | $4,680.00 |
| 4 weeks/year | $36,000.00 | $39,000.00 | $8,580.00 | $30,420.00 |
| 1 week/year | $9,000.00 | $12,000.00 | $2,640.00 | $9,360.00 |
| PTO 0 days | $18,000.00 | $18,000.00 | $3,960.00 | $14,040.00 |
| PTO 20 days | $18,000.00 | $24,000.00 | $5,280.00 | $18,720.00 |
| Withholding 30% | $18,000.00 | $21,000.00 | $6,300.00 | $14,700.00 |
| Withholding 12% | $18,000.00 | $21,000.00 | $2,520.00 | $18,480.00 |
Setup: salary $78,000, years of service 6, weeks per year 2, unused PTO 10 days, COBRA $650 a month for 3 months, withholding 22%.
Line 1 — the weekly pay. $78,000 ÷ 52 = $1,500.00.
Line 2 — the daily pay. $78,000 ÷ 260 = $300.00.
Line 3 — the severance weeks. 6 × 2 = 12 weeks.
Line 4 — the gross severance. 12 × $1,500.00 = $18,000.00.
Line 5 — the PTO payout. 10 × $300.00 = $3,000.00.
Line 6 — the total gross. $18,000.00 + $3,000.00 = $21,000.00.
Line 7 — the withholding. 22% × $21,000.00 = $4,620.00.
Line 8 — the net take-home. $21,000.00 − $4,620.00 = $16,380.00.
Line 9 — COBRA. 3 × $650 = $1,950.00 to budget for. Net after setting aside COBRA: $16,380.00 − $1,950.00 = $14,430.00.
Reverse: a $25,000.00 gross severance at 6 years and 2 weeks a year needs a $108,333.33 salary; a $30,000.00 gross severance needs a $130,000.00 salary; a $30,000.00 gross severance at $78,000 and 2 weeks a year needs 10.00 years; a $27,000.00 gross severance at 6 years and $78,000 needs 3.00 weeks a year; a $20,000.00 net take-home needs a $98,111.11 salary ($25,641.03 gross).
Salary $60,000: the weekly pay is $60,000 ÷ 52 = $1,153.85, so the gross severance is 12 × $1,153.85 = $13,846.15 and the PTO payout is 10 × $230.77 = $2,307.69. The total gross is $16,153.85, the withholding is $3,553.85 and the net is $12,600.00.
Salary $120,000: the weekly pay is $2,307.69, so the gross severance is $27,692.31 and the PTO payout is $4,615.38. The total gross is $32,307.69, the withholding is $7,107.69 and the net is $25,200.00.
Years 10: the severance weeks are 10 × 2 = 20, so the gross severance is $30,000.00. The total gross is $33,000.00, the withholding is $7,260.00 and the net is $25,740.00.
Years 1: the severance weeks are 1 × 2 = 2, so the gross severance is $3,000.00 — exactly the same as the PTO payout. The total gross is $6,000.00, the withholding is $1,320.00 and the net is $4,680.00.
4 weeks/year: the severance weeks are 6 × 4 = 24, so the gross severance is $36,000.00. The total gross is $39,000.00, the withholding is $8,580.00 and the net is $30,420.00. Doubling the weeks a year doubles the severance.
1 week/year: the severance weeks are 6 × 1 = 6, so the gross severance is $9,000.00. The total gross is $12,000.00, the withholding is $2,640.00 and the net is $9,360.00.
PTO 0 days: there is no PTO payout, so the total gross is the severance alone, $18,000.00. The withholding is $3,960.00 and the net is $14,040.00.
PTO 20 days: the PTO payout is 20 × $300.00 = $6,000.00, so the total gross is $24,000.00. The withholding is $5,280.00 and the net is $18,720.00. Ten more PTO days are worth $2,340.00 net.
Withholding 30%: the tax is 30% × $21,000.00 = $6,300.00 and the net is $14,700.00. Eight points more withholding costs $1,680.00.
Withholding 12%: the tax is 12% × $21,000.00 = $2,520.00 and the net is $18,480.00. Ten points less withholding is worth $2,100.00.
Reverse — the other way round: a $25,000.00 gross severance at 6 years and 2 weeks a year needs a $108,333.33 salary; a $30,000.00 gross severance needs a $130,000.00 salary; a $30,000.00 gross severance at $78,000 and 2 weeks a year needs 10.00 years; a $27,000.00 gross severance at 6 years and $78,000 needs 3.00 weeks a year; a $20,000.00 net take-home needs a $98,111.11 salary.
The model assumes the salary, years, weeks per year, PTO days, COBRA premium and months, and withholding rate you enter. It assumes a 52-week year and 260 working days, which is how weekly and daily pay are worked out here, and it assumes the PTO pays out at your daily rate. It leaves out state and local tax, Social Security and Medicare, any lump-sum bonus or stock in the package, and unemployment benefits — the net here is the gross minus the withholding rate you enter, not your final tax bill. The 22% default is a common flat withholding rate for supplemental wages. Rounding convention: money is rounded to cents, weeks and years are shown to two decimals, and all figures are computed from unrounded values, rounded only for display.
| Output | Formula | What it means |
|---|---|---|
| Weekly pay | annual salary ÷ 52 | $1,500.00. |
| Daily pay | annual salary ÷ 260 | $300.00. |
| Severance weeks | years × weeks per year | 12 weeks. |
| Gross severance | severance weeks × weekly pay | $18,000.00. |
| PTO payout | PTO days × daily pay | $3,000.00. |
| Total gross | gross severance + PTO payout | $21,000.00. |
| Withholding | total gross × withholding rate | $4,620.00. |
| Net take-home | total gross − withholding | $16,380.00. |
| COBRA cost | months × monthly premium | $1,950.00 for 3 months (budgeting line, not a deduction). |
| Net after COBRA | net take-home − COBRA cost | $14,430.00. |
| Salary for a $25,000 severance | $25,000 ÷ weeks × 52 | $108,333.33 at 6 years and 2 weeks a year. |
| Salary for a $30,000 severance | $30,000 ÷ weeks × 52 | $130,000.00 at 6 years and 2 weeks a year. |
| Years for a $30,000 severance | ($30,000 ÷ weekly) ÷ weeks per year | 10.00 years at $78,000 and 2 weeks a year. |
| Weeks/year for a $27,000 severance | ($27,000 ÷ weekly) ÷ years | 3.00 weeks a year at 6 years and $78,000. |
| Salary for a $20,000 net | ($20,000 ÷ (1 − rate) − PTO) ÷ weeks × 52 | $98,111.11 (gross needed $25,641.03). |
| Salary $60,000 | same model, $60,000 | Weekly $1,153.85, gross severance $13,846.15, PTO $2,307.69, total $16,153.85, withholding $3,553.85, net $12,600.00. |
| Salary $120,000 | same model, $120,000 | Weekly $2,307.69, gross severance $27,692.31, PTO $4,615.38, total $32,307.69, withholding $7,107.69, net $25,200.00. |
| Years 10 | same model, 10 years | Weekly $1,500.00, gross severance $30,000.00, PTO $3,000.00, total $33,000.00, withholding $7,260.00, net $25,740.00. |
| Years 1 | same model, 1 year | Weekly $1,500.00, gross severance $3,000.00, PTO $3,000.00, total $6,000.00, withholding $1,320.00, net $4,680.00. |
| 4 weeks/year | same model, 4 weeks a year | Weekly $1,500.00, gross severance $36,000.00, PTO $3,000.00, total $39,000.00, withholding $8,580.00, net $30,420.00. |
| 1 week/year | same model, 1 week a year | Weekly $1,500.00, gross severance $9,000.00, PTO $3,000.00, total $12,000.00, withholding $2,640.00, net $9,360.00. |
| PTO 0 days | same model, 0 PTO days | Weekly $1,500.00, gross severance $18,000.00, PTO $0.00, total $18,000.00, withholding $3,960.00, net $14,040.00. |
| PTO 20 days | same model, 20 PTO days | Weekly $1,500.00, gross severance $18,000.00, PTO $6,000.00, total $24,000.00, withholding $5,280.00, net $18,720.00. |
| Withholding 30% | same model, 30% withholding | Weekly $1,500.00, gross severance $18,000.00, PTO $3,000.00, total $21,000.00, withholding $6,300.00, net $14,700.00. |
| Withholding 12% | same model, 12% withholding | Weekly $1,500.00, gross severance $18,000.00, PTO $3,000.00, total $21,000.00, withholding $2,520.00, net $18,480.00. |
The math is exact for the numbers you enter: the weekly pay is the salary divided by 52, the severance weeks are the years times the weeks per year, the PTO payout is the days times the daily pay, and the net is the gross minus the withholding. What the model cannot do is read your severance agreement for you: check the weeks per year and whether PTO pays out at all, because a 1-week-a-year agreement and a 4-week-a-year agreement give nets $9,360.00 apart. It assumes 260 working days and leaves out state and local tax, Social Security and Medicare, bonuses, stock and unemployment benefits. For the paycheck the severance replaces, see take-home pay calculator; for the tax on a bonus in the same year, see bonus tax calculator.
Bright Side Kit. "Severance Pay Calculator: Package, PTO & Net Pay 2026." https://brightoolbox.com/severance-pay-calculator/ Accessed October 25, 2026.$18,000.00 of gross severance at the defaults, $16,380.00 net. At a $78,000 salary, 6 years of service and 2 weeks a year, the severance weeks are 6 × 2 = 12, the weekly pay is $78,000 ÷ 52 = $1,500.00, so the gross severance is 12 × $1,500.00 = $18,000.00. Add the $3,000.00 PTO payout for $21,000.00 gross, take off 22% withholding of $4,620.00, and the net take-home is $16,380.00.
Weeks of pay times your weekly pay, plus unused PTO. The severance weeks are your years of service times the weeks per year in your agreement. The weekly pay is your annual salary divided by 52. The PTO payout is your unused PTO days times your daily pay, which is your salary divided by 260 working days. Add the two, then take off tax withholding for the net.
Yes — tax is withheld from the payout. At the defaults the withholding is 22% of the $21,000.00 total gross, which is $4,620.00, so the net take-home is $16,380.00. At 30% withholding the tax is $6,300.00 and the net is $14,700.00; at 12% the tax is $2,520.00 and the net is $18,480.00. The 22% default is a common flat withholding rate for supplemental wages, not your final tax bill — the actual tax depends on your total income for the year.
$3,000.00 at the defaults. The daily pay is $78,000 ÷ 260 = $300.00, so 10 unused PTO days pay out $3,000.00. With no PTO the total gross is $18,000.00 and the net is $14,040.00; with 20 PTO days the payout is $6,000.00, the total gross is $24,000.00 and the net is $18,720.00. Whether PTO pays out at all depends on your state law and your employer’s policy — some states require it, some do not.
$108,333.33 at 6 years and 2 weeks a year. Salary = target severance ÷ severance weeks × 52, so $25,000 ÷ 12 × 52 = $108,333.33. A $30,000.00 severance at the same 12 weeks needs a $130,000.00 salary.
10.00 years at a $78,000 salary and 2 weeks a year. A $30,000.00 severance needs 20 weeks of pay at $1,500.00 a week, and 20 weeks at 2 weeks a year is 10 years. A $27,000.00 severance at 6 years needs 3.00 weeks a year instead.
No — COBRA is a cost to budget for, not a deduction. At the defaults COBRA is $650 a month for 3 months, which is $1,950.00. The net take-home is $16,380.00, and after setting aside the $1,950.00 for COBRA you have $14,430.00 left. The calculator shows COBRA as its own line so you can see the gap between the payout and the money you actually keep.