Notice Period & Buyout Calculator
Find your last working day from a resignation date, and what an early release would cost.
Resignations run on dates, and getting them wrong is expensive. This calculator gives you the exact last working day from your resignation date and notice period, tells you how many days are left, and works out what it would cost to be released early.
Resignation details
Result
Fill in the fields above and your result will appear here.
What the Notice Period & Buyout Calculator does
Indian notice periods are set by your appointment letter and typically run 30, 60 or 90 days. They are counted in calendar days — weekends and public holidays included — starting either on the day your resignation is accepted or the day after, depending on your employer's practice.
Two details cause most of the confusion. The first is leave: many employers do not allow leave taken during notice to count as notice served, which pushes your last working day out by the same number of days. The second is buyout, where you pay for the days you do not serve so you can join a new employer sooner. What that costs depends entirely on whether your contract charges it on basic, gross or full CTC.
How to use this tool
- Enter the date your resignation was, or will be, formally submitted and accepted.
- Enter the notice period from your appointment letter in days.
- Choose whether notice counts from that day or the next — check with HR if you are unsure, as it shifts the date by one day.
- If you plan to take leave during notice, enter it and say whether your employer counts it as notice served.
- To calculate a buyout, tick the box, enter the date you need to be released, and choose the basis your contract specifies along with that monthly amount.
Formula and method
Last working day = Resignation date + Notice days − 1
(+1 day if notice starts the following day)
(+ leave days, where leave does not count as notice)
Buyout cost = (Monthly amount ÷ 30) × Notice days not served
The ÷ 30 convention is the one most Indian employers use for daily salary in settlement calculations. Some use the actual number of days in the month, or 26 working days; if your contract states a different basis, the buyout will differ by a few percent.
Worked example
Example: 90-day notice, resigning on 10 August 2026
| Resignation accepted | 10 August 2026 |
| Notice starts (next day) | 11 August 2026 |
| Notice period | 90 days |
| Last working day | 8 November 2026 |
If the new employer needs you by 10 October, that is 29 days short. On a monthly basic of ₹40,000, the buyout works out to ₹40,000 ÷ 30 × 29 = ₹38,667 — usually recovered from the final settlement. Charged on a gross of ₹90,000 instead, the same 29 days would cost ₹87,000.
What your result means
The last working day is the final date you are on the payroll. Your salary, PF contributions and insurance cover normally run to that date, and your full and final settlement is processed after it.
Days remaining tells you how much runway you have to hand over work and negotiate. If a new employer wants an earlier start, the buyout figure is the number to take into that conversation — and it is frequently negotiable, particularly if you can complete a handover.
Important considerations
- Your appointment letter overrides everything here. Read the termination clause: it states the notice period, whether it differs during probation, the buyout basis and whether the employer can waive it.
- Notice during probation is usually much shorter, often 15 days or one week, and reverts to the full period only on confirmation.
- Employers cannot normally force you to serve notice, but they can withhold the relieving letter and experience certificate if you leave without settling the buyout — and most new employers ask for both.
- Garden leave is different from a buyout: you remain on the payroll but stop attending. It costs you nothing and needs the employer's agreement.
- If the employer terminates you, the notice obligation usually runs the other way — they pay you in lieu of notice.
Limitations of this tool
- The daily rate uses a 30-day month. Contracts that specify 26 working days or the actual calendar days in the month will produce a slightly different buyout figure.
- It cannot tell you whether your employer will agree to a buyout at all — that is a negotiation, not a calculation, and many organisations refuse for notice periods above 60 days.
Frequently asked questions
Does the notice period include weekends and holidays?
Yes, unless your contract says otherwise. Indian notice periods are stated in calendar days, so a 90-day notice from 11 August ends on 8 November regardless of how many Sundays fall in between.
Can I use my leave balance to shorten the notice period?
Only if your employer allows it, and many explicitly do not. Where leave is not counted as notice served, taking it pushes your last working day further out rather than bringing it closer. Ask HR in writing before planning around it.
Is a notice buyout taxable?
The amount you pay is a recovery from you, not income, so it is not taxed as a receipt. Whether you can claim it as a deduction against salary income has been litigated and depends on the facts — if your new employer reimburses it, that reimbursement is generally taxable as salary. Ask a chartered accountant.
What happens if I just stop coming to work?
The employer can treat it as abandonment, withhold your relieving letter and experience certificate, adjust the notice recovery against your settlement, and in some cases pursue recovery. Background verification at a new employer will usually surface it. Negotiating a buyout or a partial waiver is almost always the better path.
Can the company extend my notice period?
Not unilaterally beyond what the contract states, though many employers ask you to stay longer to complete a handover. Any extension should be agreed in writing, with your revised last working day confirmed.