Notice Period Buyout Calculator
Last Updated: 8 April 2026
Notice Period Buyout Calculator
Estimate your exit settlement for an early release
What is Notice Period Buyout Strategy?
A Notice Period Buyout is a financial settlement between an employee and an employer that allows the employee to leave before the official notice period ends. You pay the company for the days you don't serve, or more commonly, the amount is deducted from your final settlement.
📊 Practical Example
"If your gross salary is ₹1.5 Lakh and your notice period is 90 days, but you want to leave in 30 days, you need to 'buy out' 60 days. The cost would be (1,50,000 / 30) * 60 = ₹3,00,000."
⚠️ Common Mistake
Ignoring GST. Some Indian companies levy 18% GST on the notice period recovery amount. Check your HR policy to see if the buyout amount is exclusive or inclusive of taxes.
How it Works & Benefits
Precise Settlement
Calculate the exact amount you owe your current employer for an early release.
Remaining Days Tracker
Instantly see how many days are left to be 'bought out' based on your served time.
Gross Salary Logic
Uses standard Indian corporate formulas for monthly to daily rate conversion.
Frequently Asked Questions
Common queries answered for you
Yes. The amount paid for the notice period buyout is considered part of the employee's salary and is taxable as per the income tax slab. However, if the new employer reimburses this amount, it is often treated as a taxable perk unless structured as a joining bonus.
Yes. The notice period is a contractual obligation. Unless your appointment letter explicitly mentions a buyout option at the employee's discretion, the employer has the right to insist you serve the full duration.
In the IT sector and corporate India, the standard notice period is typically 60 to 90 days. For junior roles or probation periods, it might be 15 to 30 days.