Cost breakdown
Scenario metrics
Cost visualization
Inputs
Enter assumptions, then calculate the estimated total cost.
Example data table
Sample scenario values you can copy into the form.
| Employees | Avg salary | Severance (weeks) | Benefits (months) | PTO (days) | Payroll tax (%) | Other fixed |
|---|---|---|---|---|---|---|
| 15 | $85,000 | 8 | 2 | 6 | 10.5 | $2,000 |
| 40 | $110,000 | 10 | 3 | 8 | 12.0 | $5,000 |
| 8 | $65,000 | 4 | 1 | 4 | 9.0 | $1,000 |
Formula used
Daily pay = Avg annual salary ÷ Working days per year
Notice pay = Weekly pay × Notice weeks
PTO payout = Daily pay × PTO days
Benefits = Monthly benefits × Benefits months
Variable pay = Bonus/commission owed
Taxes & burden = (Severance + Notice + PTO) × (Payroll tax % ÷ 100)
Services per employee = Outplacement + Legal/Admin + Equipment recovery offset
Subtotal = Employees × (Direct per employee + Taxes & burden + Services per employee) + Other fixed costs
Total = Subtotal × (1 + Contingency % ÷ 100)
You can treat equipment recovery as a savings by entering a negative number.
How to use this calculator
- Enter employees impacted and average salary assumptions.
- Set severance and notice pay weeks based on policy.
- Add expected PTO payout days and benefits continuation months.
- Include variable pay, payroll tax burden, and transition services.
- Optionally add offsets or fixed one-time costs and contingency.
- Click Calculate, then export CSV or PDF.
Severance and notice planning
Severance often drives the largest cash outflow. Many plans use weeks of pay per role level. Notice pay can add weeks fast. Use this layoff cost calculator to compare policy options. Run at least two scenarios. Record the severance weeks and notice weeks you can fund.
Benefits continuation impact
Benefits continuation is a monthly cost. Multiply the monthly employer cost by coverage months. Small changes matter at scale. Two months for forty employees grows quickly. Include health, dental, and stipends. Separate benefit months from severance weeks. This improves accuracy for planning.
PTO payout data inputs
PTO payout depends on accrued days. Daily pay uses salary divided by working days. Many teams assume 260 working days yearly. Adjust if your calendar differs. Track average unused PTO by department. Enter a realistic value. This reduces surprises during payroll processing. Keep records for audit needs.
Payroll taxes and employer burden
Employer taxes apply to severance, notice, and PTO payouts. Add a burden rate for taxes and contributions. A ten percent burden increases payout totals. Use a rate aligned with payroll guidance. This calculator applies the rate only to taxable cash payouts. Benefits costs are handled separately here.
Services and transition costs
Outplacement services can protect employer brand. Legal and admin work also adds cost. Use per employee fees for consistency. Add equipment recovery offsets when assets return. Negative values reduce the total. These inputs help estimate net cost. They also support vendor comparisons across providers.
Scenario comparison with totals
Use the total cost and per employee cost together. Per employee cost helps compare departments. Total cost supports cash planning and approvals. Add a contingency buffer for exceptions. Five percent is a common starting point. Export the CSV for finance review. Export the PDF for leadership updates.
FAQs
What does this layoff cost calculator include?
It includes severance, notice pay, PTO payout, benefits continuation, variable pay, employer payroll burden, and service costs. It also supports fixed one-time costs and a contingency buffer. Results are estimates for planning and comparison.
How do I estimate average salary for mixed roles?
Use a weighted average by headcount. Group roles into bands if needed. Run separate scenarios for executives, managers, and staff. Then combine totals in a spreadsheet. This approach improves accuracy without overcomplicating inputs.
Should benefits costs be included in payroll taxes?
Not always. Benefits may be invoiced separately and not taxed like wages. This calculator applies the payroll burden to severance, notice, and PTO payouts only. Confirm treatment with payroll and benefits administrators for your location.
Why can equipment recovery be negative?
Recovered devices, licenses, and access cards can reduce net costs. Enter a negative value for expected recoveries. If recovery creates extra logistics cost, enter a positive value. The breakdown will show the direction clearly.
How can I use this for budgeting and approvals?
Run best, expected, and worst cases. Use contingency to model exceptions and legal changes. Export CSV for finance models and cash planning. Export PDF for leadership review. Keep inputs documented for audit trails.
Does the calculator handle legal requirements by country?
No. It is a general estimator. Legal requirements vary by jurisdiction, contract, and policy. Use this tool to model financial impact. Then confirm final payouts with legal and HR partners before execution.