Notice Period Buyout Cost Calculator

Estimate the cost of buying out unserved notice days from your monthly Basic — with the working shown.

How it works

A notice period buyout is estimated as your monthly Basic divided by 30 to get a per-day amount, times the number of unserved notice days. Enter your monthly Basic and the days to buy out above and the tool shows the estimated cost. Actual policies vary by company.

₹30,000
estimated buyout cost
  • Per-day Basic₹30,000 ÷ 30 = ₹1,000
  • Buyout₹1,000 × 30 = ₹30,000

Estimate only. Companies compute buyout on Basic, gross or CTC per their policy — check your offer letter.

Formula Buyout ≈ (Monthly Basic ÷ 30) × Unserved days

When you leave a job without serving your full notice, employers often recover the shortfall as a buyout. This tool gives a quick estimate of that cost from your monthly Basic salary and the number of days you will not serve.

The formula

The estimate turns your monthly Basic into a per-day rate, then multiplies by the unserved days:

Buyout ≈ (Monthly Basic ÷ 30) × Unserved days

For example, with a monthly Basic of ₹30,000 and 30 notice days to buy out:

  • Per-day Basic = ₹30,000 ÷ 30 = ₹1,000
  • Buyout = ₹1,000 × 30 = ₹30,000

When this helps

  • Early exits — estimate what leaving before your notice ends may cost.
  • Offer negotiation — check whether a new employer's buyout offer covers the shortfall.
  • Planning — budget for the recovery amount before you resign.

This is an estimate — policies vary

Companies calculate notice recovery differently: some use Basic, some use gross, and some use full CTC; some divide by 30 calendar days and others by working days. That means the real figure can differ from this estimate, so always confirm the exact basis in your offer letter or HR policy. This tool does not give legal advice. To estimate a long-service payout instead, use the gratuity calculator, and the CodeBegun career guides cover resigning and negotiating notice terms.

Frequently Asked Questions

How is a notice period buyout calculated?
A common estimate is (Monthly Basic ÷ 30) × unserved notice days. For a ₹30,000 Basic and 30 days, that is ₹1,000 per day × 30 = ₹30,000.
Is buyout always based on Basic salary?
No. Some companies compute recovery on Basic, others on gross or full CTC. This tool uses Basic as a common baseline, but your offer letter or policy is the final word.
Who pays the buyout?
Usually you or your new employer covers the shortfall for notice days you do not serve. Some employers offer a buyout or a joining bonus to offset it — check both contracts.
Does the estimate include tax?
No. The figure is a pre-tax estimate of the recovery amount. Any tax treatment of a buyout paid or reimbursed depends on the specifics and is not covered here.
Why divide by 30?
Dividing the monthly Basic by 30 gives a simple per-calendar-day rate. Some companies use working days instead, which changes the per-day amount slightly.
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