Notice period buyout calculator

A notice period buyout is usually your monthly pay divided by the days in the month, multiplied by the notice days you want to skip. Enter your monthly basic or gross pay, the divisor your contract uses and the days remaining. The result is an estimate; your contract decides the real amount.

LiveRec Editorial. Assumptions last checked .

Your notice period
Pay used for the buyoutYour contract says which one applies.
Many contracts use 30. Some use the actual days or 26 working days.

Enter your pay and the notice days to see the buyout amount.

How this is calculated

  1. Daily rate = monthly pay ÷ days in the month.
  2. Buyout = daily rate × remaining notice days.

Example with made-up numbers: Rs 60,000 a month ÷ 30 days = Rs 2,000 a day. Buying out 45 days = Rs 90,000.

Which pay counts (basic or gross), which divisor (30, the actual days in the month, or 26 working days) and whether the company can waive or recover the amount are all set by your offer letter and employment contract. The result is before tax. Some employers also recover leave encashment or bonuses; this calculator does not.

Assumptions and sources

Last checked 30 October 2026.

  • The formula is arithmetic: monthly pay ÷ days × remaining days. No external rate is used.
  • You choose basic or gross pay and the divisor, because contracts differ. We do not assume a market norm.
  • Tax on the payment, set-off against dues, and whether the company accepts a buyout at all are outside this calculator.

Frequently asked questions

Should I use basic or gross pay?
Use what your contract says. If it only says "salary" or "notice pay", ask HR in writing which component is meant.
Can my employer refuse a buyout?
It depends on the contract. Some clauses let the employee pay in lieu of notice, others need the employer to agree.
Do I pay the employer or does the employer pay me?
If you leave before serving notice, you usually pay the employer. If the employer ends your employment early, the clause may work the other way. Read the clause.
Does the calculator store my numbers?
No. It runs in your browser, stores nothing and sends nothing.

This is general information, not legal, tax or immigration advice. Rules change and your situation may differ. Consult a licensed attorney or qualified adviser.