Notice Period Buyout Calculator
Enter your CTC and notice period to calculate your daily rate, total buyout cost, and how it compares to serving the notice period. Helps you decide whether to buy out or serve.
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If you've already started your notice period, enter days served so far
Frequently Asked Questions
Buyout = (Annual CTC ÷ working days per year) × remaining notice days. If your offer letter specifies a different basis (e.g., basic salary only, or gross salary), the actual buyout may differ. Always read your offer letter's notice period clause carefully — some state "basic salary per day" not "CTC per day".
Yes. A buyout is an arrangement both parties must agree to — it is not a legal right. Your employer can insist you serve the full notice period. In practice, most companies in India accept buyouts for salaried employees, especially in IT and services, but this is not guaranteed.
The amount you pay as buyout is not tax-deductible for you (it's a payment you make, not income). The salary you would have earned during the notice period — had you served it — is taxable income. The buyout payment you make comes from your post-tax savings.
Many companies calculate notice period pay on "last drawn basic salary" not CTC. If your basic is 40% of CTC, your buyout could be 40% of what this calculator shows. Check your specific offer letter or HR policy before negotiating.