Gratuity Calculator

Calculate gratuity you will get on retirement.

Last Basic Salary

₹

Years of Service10 yrs

Gratuity Amount

₹2,88,462

Exempt Amount

₹2,88,462

Taxable Amount

₹0

Tax on Gratuity

₹0

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What is Gratuity Calculator?

Gratuity is a lump sum payment made by an employer to an employee as a token of appreciation for long service, governed by the Payment of Gratuity Act, 1972. A gratuity calculator estimates the gratuity amount you will receive based on your last drawn salary and years of service.

Gratuity is payable when you complete at least 5 years of continuous service and leave the job, retire, or resign. It is fully tax-exempt up to ₹20 lakh for eligible employees.

How does the Gratuity Calculator work?

Gratuity = (Last Drawn Salary × 15 × Years of Service) / 26

Last drawn salary includes basic pay + dearness allowance. Years of service are rounded: 6+ months count as a full year.

For employees not covered by the Act, the formula uses 15 days of salary for each completed year of service, and the tax exemption limit is ₹20 lakh.

How to use the Gratuity Calculator?

Enter your last drawn basic salary and dearness allowance.
Enter your total years of service.
The calculator shows your estimated gratuity amount.

Example

Try the calculator with your own numbers

Enter your values in the input fields above.
Adjust the values to match your situation.
The result updates instantly as you change the inputs.

Your result appears instantly — no manual calculation needed.

Benefits of using the Gratuity Calculator

Know your gratuity entitlement before resigning or retiring.
Plan your retirement finances accurately.
Understand the tax-exempt portion of your gratuity.
Negotiate better when switching jobs.

Who should use the Gratuity Calculator?

Individuals planning loans, investments, or retirement savings.
Salaried employees estimating taxes, EMIs, and take-home pay.
Small business owners tracking costs, margins, and cash flow.
Students learning personal finance and investment concepts.

Tips for getting the most out of the Gratuity Calculator

Use realistic return rates — past performance does not guarantee future returns.
Re-run the calculation whenever your income, expenses, or goals change.
Compare a few scenarios (conservative, moderate, aggressive) before making a decision.

Frequently Asked Questions

Who is eligible for gratuity?

Employees covered under the Payment of Gratuity Act, 1972 are eligible after 5 years of continuous service. The Act applies to establishments with 10 or more employees.

Is gratuity taxable?

Gratuity received by government employees is fully exempt. For private employees, the exemption is up to ₹20 lakh, and the least of the three specified limits is exempt.

What happens to gratuity on death or disability?

In case of death or disability, the 5-year service condition is waived, and gratuity is paid to the nominee or legal heir.

Planning your finances is easier when you can see the numbers clearly. Use this calculator regularly to stay on top of your goals and make informed decisions.