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Employment

Employee Buyout Calculator

Employers sometimes offer buyouts to reduce headcount. This calculator estimates what a fair employee buyout package looks like based on your salary, tenure, and unused time off.

Tell us about it

in $ USD
$2,000.00
$
5
2
10
$400.00
$0.00
$
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Estimated Buyout

$24,000.00

In plain English

After 5 years at $2,000.00 a week, with 2 severance weeks per year, 10 unused PTO days, and a $0.00 healthcare stipend, the estimated severance package is $24,000.00.

How we got there+
Daily pay rate$400.00
Base severance$20,000.00
PTO payout$4,000.00
Healthcare stipend$0.00
Total package$24,000.00

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

How we got there

— Employee 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 employee buyout?▾
It is a package offered by an employer to convince an employee to leave voluntarily. It usually includes severance pay, PTO payout, and sometimes other benefits.
Q.How is severance calculated?▾
A common formula is weeks of pay per year of service. If you get 2 weeks per year and have worked 5 years, your base severance is 10 weeks of pay.
Q.Should I accept a buyout offer?▾
Compare the package to what you would earn by staying. Consider the job market, your savings, and whether you have another job lined up.
Q.Is unused PTO included in the buyout?▾
It depends on your employer and local law. Many companies pay out unused vacation days. The calculator includes this in the total.
Q.Do I need to sign a release to get the buyout?▾
Usually yes. Employers typically require you to sign a release of claims, meaning you agree not to sue them. Read it carefully before signing.

Related calculators

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