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Employment

Early Retirement Buyout Calculator

Early retirement buyouts can be a good deal or a costly mistake. This calculator estimates the full value of an early retirement offer so you can compare it to what you would earn by staying.

Tell us about it

in $ USD
$3,000.00
$
20
3
25
$600.00
$5,000.00
$
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Estimated Buyout

$200,000.00

In plain English

After 20 years at $3,000.00 a week, with 3 severance weeks per year, 25 unused PTO days, and a $5,000.00 healthcare stipend, the estimated severance package is $200,000.00.

How we got there+
Daily pay rate$600.00
Base severance$180,000.00
PTO payout$15,000.00
Healthcare stipend$5,000.00
Total package$200,000.00

Estimates only, not legal or financial advice. Double-check figures with a qualified professional.

How we got there

— Early Retirement Buyout Calculator

Methodology reviewed: August 17, 2026 · Source: IRS Publication 525 — Taxable and Nontaxable Income

Is severance pay taxable?

Yes, severance is taxed as regular income. The calculator shows the gross amount. Your actual take-home pay will be less after taxes.

Is PTO payout taxed differently than severance?

Both are taxed as regular income. The calculator shows gross amounts. Your actual payout will be less after taxes and deductions.

Frequently asked questions

Q.What is an early retirement buyout?▾
It is an incentive package offered to encourage older employees to retire before their normal retirement age. It usually includes additional severance and benefits.
Q.How do I know if the offer is fair?▾
Compare the total package to your expected salary and benefits for the years until normal retirement. This calculator helps you see the total value.
Q.Should I take the lump sum or ongoing payments?▾
It depends on your financial situation. A lump sum gives you flexibility, but ongoing payments provide steady income. Consider talking to a financial advisor.
Q.Will I lose health insurance if I retire early?▾
Some packages include continued health coverage or a stipend. Enter the stipend in the calculator to see how it affects the total.
Q.Can I keep working elsewhere after taking early retirement?▾
Usually yes, but check the terms. Some buyout agreements restrict working for competitors for a certain period.

Related calculators

  1. 01Employee Buyout Calculator→
  2. 02Voluntary Severance Calculator→
  3. 03Severance Package Calculator→
  4. 04Redundancy Pay Calculator→
  5. 05PTO Payout Calculator + Severance→