How is severance pay calculated?

Severance is typically calculated as one to two weeks of pay per year of service, multiplied by industry and seniority factors. For example, a tech employee at the director level with 5 years of service at $100,000/year might receive 5 × 1.5 × 1.3 × 1.3 = 12.7 weeks of pay, or about $24,500 gross. Actual amounts depend on your employment agreement and employer policy.

How long does COBRA coverage last after a layoff?

COBRA continuation coverage typically lasts up to 18 months after a qualifying event like a layoff. You must elect COBRA within 60 days of losing coverage and pay 100% of the premium plus a 2% administrative fee. Many people find ACA Marketplace plans cheaper after a layoff.

How much unemployment can I collect after being laid off?

Unemployment benefits vary by state. Most states pay approximately 40–50% of your prior weekly wage, capped at the state's maximum weekly benefit amount (WBA). For example, California's maximum WBA is $450/week while Washington state's is $1,079/week. Duration ranges from 12 weeks (Florida, North Carolina) to 30 weeks (Massachusetts).

What is financial runway and how long should I have?

Financial runway is the number of months you can cover your living expenses using your severance pay, savings, and unemployment benefits. Financial advisors generally recommend 3–6 months as a baseline; 6+ months gives you time to be selective in your job search rather than accepting the first offer out of financial pressure.

What does the WARN Act require my employer to do?

The federal WARN Act requires employers with 100+ employees to give 60 days advance notice of mass layoffs affecting 50+ workers at a single site. If your employer failed to provide this notice during a qualifying mass layoff, you may be entitled to back pay and benefits for up to 60 days. Consult an employment attorney to evaluate your specific situation.

Layoff Calculator 2026 — Severance, Runway & COBRA

Module 1 of 4

Severance Pay Estimator

Your answers populate all four modules automatically.

Annual Salary

Quick select:

Years of Service

years

Industry

Seniority Level

State

✓

Mass layoff — 50+ employees laid off at once

✓

I am 40 or older — may trigger additional legal protections

Module 2 of 4

Financial Runway Calculator

How many months until you need income? State auto-populated from above.

Total Savings & Emergency Fund

Monthly Expenses

Module 3 of 4

COBRA vs ACA Health Insurance Cost

See your monthly costs side by side. Income estimate auto-populated from Module 1.

Coverage Type

Monthly Paycheck Deduction (optional)

Module 4 of 4

State Unemployment Insurance Benefits

Auto-calculated from your state and salary in Module 1.

Your Next Steps

Take these six actions in the next 72 hours.

1

File for unemployment today

Most states require you to file within 2–3 weeks of separation. Every day you wait is a day of benefits you can't reclaim. Go to your state's unemployment portal now.
2

Review your severance agreement carefully

You typically have 21 days to sign (45 days if in a group layoff). If you're 40+, you also have 7 days to revoke. Don't rush. Have an employment attorney review it — many offer free consultations.
3

Elect COBRA or shop ACA Marketplace within 60 days

You have 60 days from losing coverage to elect COBRA. Losing job-based coverage is also a Special Enrollment Period for ACA Marketplace plans. Don't let the deadline slip.
4

Cut non-essential subscriptions immediately

Every $50/month you cut is $600/year and roughly adds one more day of runway. Audit streaming, software, memberships, and gym fees this week.
5

Update your resume and LinkedIn profile

Get your resume updated before you start applying. Recruiters check LinkedIn constantly — make sure your profile reflects your current situation and is open to opportunities.
6

Talk to a financial advisor about your 401(k)

Leaving a job triggers decisions about your 401(k) — rollover to an IRA, leave it, or cash out (avoid cashing out). Get professional guidance before making irreversible moves.

This calculator provides estimates based on industry averages and publicly available data. Results are for informational and educational purposes only and do not constitute legal, financial, tax, or employment advice. Actual amounts depend on your specific employment agreement, employer policies, and state law. Consult a qualified employment attorney and financial advisor before making decisions. Not affiliated with any employer, the U.S. Department of Labor, the IRS, or any state unemployment agency.