Loading page
About this tool
Work out the cost of buying out an unserved notice period from your salary components, leave adjustment and per-day basis.
The Notice Period Buyout Calculator tells you what leaving early actually costs. It converts your monthly salary into a per-day rate on the base your contract specifies — Basic + DA or full gross — and multiplies it by the notice days you will not serve, after setting off any leave balance your employer allows you to adjust. It is built for employees weighing an early joining date, and for HR teams issuing a recovery note.
Open Notice Period Buyout Calculator on AltFTool — it loads instantly in your browser.
Enter the values you already know.
Fine-tune the options to match your scenario.
Read the result and use it in your planning or reporting.
Charge the buyout on Basic + DA or on full gross, exactly as your appointment letter states.
Adjusted leave days are deducted from the shortfall before the per-day rate is applied.
Shows the buyout, optional GST, reimbursement offset and net cost so you can quote a figure with confidence.
The usual formula is unserved notice days multiplied by per-day salary, where per-day salary is the contractual base (commonly Basic + DA) divided by 30 or by the number of working days in the month. There is no statutory formula — the amount comes from your employment contract.
It depends entirely on the wording of your appointment letter. Many Indian employers recover on Basic + DA, some on gross, and a few on full CTC, which is the most expensive for the employee. Check the clause before you agree to a date.
Many companies allow accrued earned leave to offset part of the notice, but it is a policy decision, not a right. Some employers insist leave be encashed in the settlement instead of adjusted, which leaves the full shortfall payable.
Several employers historically added 18% GST to notice pay recovery, but multiple CESTAT and AAR rulings and a 2022 CBIC circular have held that notice pay recovery is not a supply and is not liable to GST. The toggle is provided only for employers that still invoice it — treat this as general information, not tax advice.
Add the Notice Period Buyout Calculatorwidget to your blog or website — free, responsive, no signup. Just keep the “Widget by AltFTool” credit link visible.
<iframe src="https://www.altftool.com/embed/widget/notice-period-buyout-calculator"
title="Notice Period Buyout Calculator — free AltFTool widget"
width="100%" height="640" style="border:0;border-radius:12px;overflow:hidden"
loading="lazy" referrerpolicy="no-referrer-when-downgrade"></iframe>
<p style="font-size:12px;margin:4px 0 0">Widget by <a href="https://www.altftool.com/tools/all/notice-period-buyout-calculator?utm_source=embed&utm_medium=widget">AltFTool — free online tools</a></p>