Notice Period Buyout Calculator

The Notice Period Buyout Calculator estimates what it would cost to leave before serving your full notice. It converts your salary into a per-day rate and multiplies that by the number of notice days you will not serve.

The important part is which salary the per-day rate is based on. Employers differ: some calculate buyout on basic salary, some on gross, and some on full CTC. The same unserved notice can therefore cost very different amounts at two companies, which is why the calculator asks you for the figure your policy actually uses.

1. Choose whether your employer calculates buyout on basic or gross salary.
2. Enter that monthly salary figure.
3. Enter your total notice period in days and the days you have already served.
4. Read the estimated remaining days, daily rate and buyout amount.

Remaining notice days = Total notice days − Days served

Estimated daily salary = Monthly salary ÷ 30

Estimated buyout = Daily salary × Remaining notice days

With a gross monthly salary of ₹60,000, a 90-day notice period and 30 days served, the remaining notice is 60 days. The daily rate is ₹2,000, so the estimated buyout is ₹1,20,000.

Thirty unserved days costed against three different salary bases, for someone with a monthly gross of \u20B960,000 and basic at 40% of gross.

The spread between the first and last row is more than fifty thousand rupees for exactly the same thirty days. Before you negotiate a buyout, get the basis in writing.

• A new employer wants you earlier than your notice period allows.
• You are negotiating whether the new employer will reimburse the buyout.
• You want to weigh the buyout cost against the extra salary from joining sooner.
• You are checking a recovery amount your current employer has quoted.

• The salary basis. Basic, gross or CTC — this changes the total more than anything else.
• Days in the month used. Some policies divide by 30, others by the actual days in the month or by working days.
• Leave adjustment. Unused leave may be set off against notice, reducing the days you need to buy.
• Employer discretion. A buyout is usually an option your employer may accept or refuse, not a right.
• Recovery from settlement. The amount is often deducted from your full and final settlement rather than paid separately.
• Tax treatment. How a buyout or its reimbursement is treated for tax depends on the facts; check with a qualified professional.

Notice buyout is common in Indian IT services and in roles with long notice periods, and new employers sometimes agree to reimburse it to secure an earlier joining date. The terms are governed by your employment contract and your employer’s policy, not by a standard national rule.

Nothing here is legal or tax advice. If your employer is demanding a recovery you believe is not supported by your contract, take the contract to a qualified professional.

• A month is treated as 30 days for the daily-rate calculation.
• The whole remaining notice is bought out, with no leave adjustment.
• Taxes, recoveries and other settlement items are not included.

Employers use different formulas — some apply basic salary only, some include allowances, and some deduct from the full-and-final settlement instead of asking for a payment.

This is an estimate for planning only. The actual buyout depends on your employment agreement and company policy. This page is not legal, tax or financial advice.

The formula above is the whole calculation — nothing is hidden, and every figure you enter stays in your browser. Read the calculator methodology for how formulas are chosen, how inputs are validated and how rounding is handled, or report a result that looks wrong.