Notice period buyout calculator
Want to leave before your notice ends? Give me your notice period, the days you’ve served and your pay, and I’ll estimate what the buyout costs.
Earned or privilege leave left.
Your appointment letter says which. Basic is common; some contracts use gross.
Most employers divide by 30; some use 26 working days.
The day you resign counts as day 1 of your notice.
Buyout estimate
₹1,00,000
60 unserved days × ₹1,666.67
- Notice days left
- 60
- Unserved days to buy out
- 60
- Per-day rate (Basic ÷ 30)
- ₹1,666.67
Estimate — your contract decides. Some employers waive part of the notice, recover it from your full and final settlement, or let the new employer pay it.
Estimates for planning, not tax or legal advice. Rules change with each Budget and differ by employer, so check your offer letter, payslip or a professional before you act.
How it’s calculated
Buyout = unserved days × monthly pay ÷ 30 (or 26)
There is no single law setting the buyout for private-sector employees: your appointment letter does. Most contracts charge Basic, or sometimes gross pay, for each day of notice you don’t serve. A day’s pay is usually a month’s pay divided by 30; some employers divide by 26 working days.
Worked example. A 90-day notice period, 30 days served, Basic of ₹50,000. Unserved days: 60. Per day: ₹50,000 ÷ 30 = ₹1,666.67. Buyout: 60 × ₹1,666.67 = ₹1,00,000. If your employer lets you adjust 10 days of leave, the unserved days drop to 50 and the buyout to ₹83,333.
Rules of thumb
- Leave adjustment against notice is at your employer’s discretion; many don’t allow it.
- The buyout is usually recovered from your full and final settlement, or your new employer may pay it.
- Your employer may also waive some or all of the notice. It’s worth asking before you pay.
Questions people ask
How is notice period buyout calculated?
Unserved notice days × a day’s pay. A day’s pay is your monthly Basic (or gross, if your contract says so) divided by 30, or by 26 at some employers. For example, 60 unserved days on a Basic of ₹50,000 is ₹1,00,000.
Is notice buyout on Basic or gross salary?
It depends on your appointment letter. Basic is common, but some contracts charge gross pay. Check the notice clause before you negotiate.
Can I use my leave to shorten my notice?
Only if your employer allows it. Many companies don’t let you adjust earned leave against notice, and instead pay out the leave in your full and final settlement.
Can my new employer pay the buyout?
Often, yes. Many employers reimburse a buyout for candidates they want to join quickly. Ask for it as part of your offer, ideally in writing.
Can my employer refuse to let me buy out my notice?
Some contracts give the employer the choice. If yours does, they can ask you to serve the notice in full. Talk to your manager and HR early; partial waivers are common.
Numbers done. Now the decision.
Tell me what the numbers mean for you, and I’ll help you decide what to do next.