OnSumoTools

Severance Negotiation Calculator

Value your severance cash, COBRA, and equity acceleration, compare to a tenure-based benchmark, and see what to negotiate before you sign.

This is a planning benchmark, not legal advice. Have an employment attorney review your offer before you sign.

100% client-side. Inputs stay in your browser (ons-severance-inputs).

Your offer

Package value

You have 21 days to sign or negotiate.

Below marketvs benchmark: -$3,969

Total package value

$24,877

Benchmark (cash)

$28,846

Benchmark tenure

12.5 weeks

ComponentValue
Severance cash$23,077
COBRA (estimated)$1,800
Equity acceleration$0
Total package$24,877

Non-compete estimate: this scope may cost about $577 in restricted opportunities (directional, not cash from the employer).

Negotiation checklist

  • Ask for 3 more weeks of pay

    Est. value: $6,923

    Benchmark is based on role and tenure, not industry alone.

  • Extend COBRA subsidy by 3 months

    Est. value: $1,800

    Employers often fund premiums for a fixed period.

  • Full vesting acceleration

    Est. value: $50,000

    Assumes a four-year vest schedule for partial acceleration math.

  • Outplacement coaching (3–6 months)

    Est. value: $5,000

    Typical vendor program cost; value is career search support.

  • Narrow non-compete to city-only or remove

    Est. value: $577

    Estimated opportunity cost, not a cash payment from the employer.

  • Written reference or neutral employment verification

    Hard to price in dollars but often negotiable.

How does the Severance Package Calculator work step by step?

Most employees accept the first severance offer without knowing whether it is above or below what their role, tenure, and industry typically receive. This calculator gives you that benchmark in seconds and shows the total dollar value of every component in the package, including items many employees overlook: COBRA coverage value, unvested equity vesting acceleration, and the economic cost of a broad non-compete clause. With this information, you can negotiate from a position of knowledge rather than guessing whether to push back or sign.

What does a typical Severance Package Calculator result look like?

Annual base salary: $120,000. Years of service: 5. Role: Director. Offered: 10 weeks severance. COBRA: 3 months. Unvested shares: 1,000. Share price: $50. Vesting acceleration: None. Non-compete: National scope, 6 months. Weekly salary: $2,308. Cash value: $23,077. Benchmark: Director x 5 years = 12.5 weeks = $28,846. COBRA value: $1,800. Total package: $24,877 vs benchmark $28,846 = $3,969 below market. Non-compete cost estimate: $1,154 in restricted opportunity cost.

Frequently asked questions

  • How much severance should I get?

    A common benchmark is 1-2 weeks per year of service for individual contributors and 2-4 weeks per year for directors and above. Tech companies have historically offered more generous packages than retail or manufacturing. This calculator uses role-specific multipliers based on general market practice. Senior and executive roles routinely receive more than the baseline.

  • What can I negotiate in a severance package beyond weeks of pay?

    Beyond the weeks of cash pay, you can often negotiate: extended COBRA coverage, equity vesting acceleration (one additional year is a common ask), outplacement services, a positive written reference letter, removal or narrowing of the non-compete clause (geographic scope or duration), and extension of RSU exercise windows if you hold vested options.

  • Do I have to sign within 21 days?

    For employees age 40 and older, the Age Discrimination in Employment Act (as amended by the Older Workers Benefit Protection Act) requires employers to give at least 21 days to consider severance agreements that include a waiver of ADEA claims. You also have 7 days to revoke your signature after signing. Employers cannot legally shorten these windows.

  • What is COBRA and why does its coverage value matter?

    COBRA lets you continue your employer's group health plan for up to 18 months after leaving, but you pay the full premium (both employee and employer shares) plus up to 2% administrative fee. Employer-sponsored health plans often cost $500-$1,500 per month at full COBRA rates. Three to six months of COBRA coverage paid by the employer can be worth $1,500-$9,000 in real value.

  • Should I negotiate the non-compete clause?

    Yes, especially if it is broad in scope or duration. A national non-compete restricts where you can work and can cost you job opportunities. You can negotiate to narrow the geographic scope (state instead of national), shorten the duration, or limit the industries covered. Some states (California, Minnesota, others) do not enforce non-compete clauses at all for employees.

  • What happens to my unvested equity if I do not negotiate acceleration?

    Unvested shares typically revert to the company's equity pool and you receive nothing for them. If you have a significant unvested balance close to a vest date, requesting acceleration of the next tranche (e.g., the next 12 months of vesting) is often the highest-value item to negotiate in a severance package.

Related tools

Don't sign the first offer without a look

Losing a job is stressful, and a severance letter can feel like a final answer. It often isn't. Many companies expect some pushback and leave room to improve the package.

This calculator values what you've been offered and compares it with a typical range based on your years of service. It also counts items people forget, like health coverage and unvested equity.

What goes into the package value

Weeks of pay is the headline, but it isn't everything. Add paid health coverage through COBRA, any bonus owed, accrued leave payout, outplacement help and equity that vests early. The tool totals each line so you see the real number.

A common rough guide is one or two weeks of pay per year of service, though many employers go higher for senior staff. Treat that as a loose benchmark and not a rule.

  • Ask for more weeks, especially if you're long-tenured
  • Request COBRA subsidy for several months
  • Push for equity acceleration on shares close to vesting
  • Negotiate a neutral reference and an agreed reason for leaving

Read the fine print

Severance usually comes with a release, meaning you give up the right to sue. Non-compete and non-disparagement terms may be in there too. Some can be softened or removed if you ask.

Check the deadline to sign. Some workers over 40 get at least 21 days to consider and 7 days to revoke under federal law, but rules vary, so confirm yours.

This is a planning tool, not legal advice. If a lot is at stake, talk to an employment lawyer. Nothing you type leaves your browser.