Finance Tools
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3 min read
Gratuity Calculator: Know Your Corporate Payout Instantly
Leaving your job after 5 years? Calculate your exact Gratuity payout according to the Payment of Gratuity Act 1972 using our free online tool.
By ToolClub Finance Desk
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Published 2026-06-06
The 5-Year Reward
In India, if you have completed 5 years of continuous service with a single employer, you are legally entitled to a Gratuity payout when you resign or retire. Unfortunately, many employees don't know how to calculate what they are owed.
Calculate Your Exact Payout
Our Gratuity Calculator uses the official formula defined by the Payment of Gratuity Act (1972) to tell you exactly what your HR department owes you upon exit.
Key Pros
- Act-Compliant Math: Uses the strict (15/26) * Last Drawn Basic * Tenure formula.
- Tax Limit Warnings: Notifies you if your payout exceeds the government's ₹20 Lakh tax-free ceiling.
- Instant Results: No sign-ups required. Just enter two numbers to get your result.
How to Use It
- Tenure: Enter the exact number of years and months you worked at the company. (Months exceeding 6 are rounded up to a full year).
- Last Drawn Salary: Enter your final Basic Salary + Dearness Allowance (DA). Do not include bonuses or special allowances.
- Calculate: Instantly view your guaranteed payout corpus.