Gratuity Calculator – Calculate Gratuity Amount

About this calculator

Use the Gratuity Calculator – Calculate Gratuity Amount to quickly estimate results. Enter the inputs and review the calculated output below. This tool is for guidance and educational purposes only.

Calculator

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Understanding the results

The results show estimated values based on your inputs. Check the values and adjust inputs if you need different scenarios.

More about this tool

What is Gratuity?

Gratuity is a one-time payment made by employers to employees upon retirement or resignation after completing 5 years of service. It's a form of appreciation for the employee's years of service and contribution to the organization. Gratuity is protected under the Payment of Gratuity Act, 1972.

Gratuity Calculation Method

Gratuity = (Basic Salary + Dearness Allowance) × Last Month / 26 × Years of Service. Last Month refers to the last drawn salary or average of last 10 months salary, whichever is higher. For employees covered under the Payment of Gratuity Act, maximum gratuity is Rs. 20 lakh. Gratuity is fully tax-exempt under certain conditions.

Using this Tool

Enter your basic salary, dearness allowance, years of completed service, and separation date. This tool shows your gratuity amount based on the legal formula. Helps you understand retirement benefits and plan post-retirement finances.

Frequently asked questions

Is the Gratuity Calculator free to use?

Yes, the Gratuity Calculator is 100% free with no signup, no hidden charges, and no usage limits. It works on mobile and desktop.

How accurate is this Gratuity Calculator?

Results are calculated using standard formulas used by Indian banks and financial institutions. The output is accurate for planning and comparison, though actual amounts may vary slightly based on bank-specific rounding, processing fees, and other charges.

Do I need to download any software?

No. The Gratuity Calculator runs entirely in your browser. There is no app to install, no signup, and nothing to download. Your inputs stay on your device.

Can I use the Gratuity Calculator on mobile?

Yes, the tool is fully responsive and designed to work on any smartphone or tablet as well as desktops. All features including charts and detailed breakdowns work on mobile.