Calculator
What the Gratuity Calculator does
Gratuity Calculator: calculates Gratuity Payable, Calculated (before cap) and Tax-exempt Portion from Last Drawn Basic + DA (monthly), Years of Service and Extra Months. Example: last drawn basic + DA (monthly) 50000 ₹, years of service 10 and extra months 0 gives gratuity payable ₹2,88,461.54.
From Last Drawn Basic + DA (monthly), Years of Service, Extra Months and Employee Type, this tool derives Gratuity Payable, Calculated (before cap) and Tax-exempt Portion. You can nudge a single number and watch the effect straight away.
Most people who open the Gratuity Calculator are savers modelling a goal. Getting the arithmetic right before you sign is cheaper than discovering it afterwards.
There is no back end here. The calculation runs where you are sitting, not on a server somewhere.
The method, a field-by-field reference and a worked example built from the defaults are all on this page.
What do the Gratuity Calculator fields mean?
The Gratuity Calculator uses 4 inputs. Pre-filled inputs double as documentation: each one shows what a reasonable value looks like.
| Field | What to enter | Default |
|---|---|---|
| Last Drawn Basic + DA (monthly) | measured in ₹; accepts 1000 to 1000000 | 50000 |
| Years of Service | accepts 0 to 50 | 10 |
| Extra Months | accepts 0 to 11 | 0 |
| Employee Type | choose from Private (covered by Act), ÷26, Fixed-term (1+ yr eligible), Government employee or Not covered by Act, ÷30 | Private (covered by Act), ÷26 |
How does the Gratuity Calculator work?
Each output is derived from the inputs above in a single pass; there is no hidden state carried between runs, so the same inputs always give the same calculation.
Nothing is computed until the inputs pass their checks, so you will not get a confident answer built on a typo.
Worked example
These are the values the Gratuity Calculator loads by default, and the result it produces from them. This is the worked example the page starts from, reproduced here so you can check the arithmetic.
| Last Drawn Basic + DA (monthly) | 50000 ₹ |
|---|---|
| Years of Service | 10 |
| Extra Months | 0 |
| Employee Type | Private (covered by Act), ÷26 |
| Gratuity Payable | ₹2,88,461.54 |
|---|---|
| Calculated (before cap) | ₹2,88,461.54 |
| Tax-exempt Portion | ₹2,88,461.54 |
| Taxable (above ₹20L) | ₹0.00 |
| Years Counted | 10 |
| Eligibility | Eligible (≥ 5 years continuous service) |
| Formula Used | (Basic+DA × 15 × 10) ÷ 26 |
Read next: Section 80C: How the ₹1.5 Lakh Deduction Really Works
How to use it
- Fill in Last Drawn Basic + DA (monthly) in ₹ (1000 to 1000000).
- Type Years of Service (0 to 50).
- Enter Extra Months (0 to 11).
- Pick a value for Employee Type: the options are Private (covered by Act), ÷26, Fixed-term (1+ yr eligible), Government employee or Not covered by Act, ÷30.
- Type a value and the answer is already there by the time you stop.
- The panel reports Gratuity Payable, Calculated (before cap), Tax-exempt Portion, Taxable (above ₹20L), Years Counted, Eligibility and Formula Used.
- Copy Link puts the current inputs in the URL, so bookmarking it brings the same numbers back.
What this tool does not do
- Fees, processing charges and taxes are not included unless there is a field for them.
- Lender rounding conventions differ, so your statement may vary by small amounts.
- It cannot detect a typo that happens to fall inside the valid range.
- Confirm the units before you act on the output. The arithmetic is only as sound as what went in.
Frequently asked questions
Enter Last Drawn Basic + DA (monthly) in ₹. The unit is shown beside each box, and the result carries its own label, so there is nothing to convert by hand.
Last Drawn Basic + DA (monthly) accepts 1000 to 1000000 ₹. If a value falls outside, the tool says which field is at fault instead of guessing.
With the values loaded when the page opens, gratuity payable comes out as ₹2,88,461.54. The figure is derived from the inputs above, so it updates whenever they do.
It is not stored or transmitted. The calculation happens locally and leaves no trace with us.
No. There is no account, no usage cap and no trial period. The site is funded by advertising rather than by charging for the tools.
The result is reliable for the assumptions you entered, and those assumptions are the fragile part. A rate that changes mid-term will move the outcome more than any rounding here.