Home / Income Tax / Gratuity Calculator

Gratuity Calculator

↻ Updated FY 2026-27

Estimate the gratuity you're entitled to on leaving a job — using the (15/26) × last-drawn-salary × years-of-service formula, tax-free up to ₹20 lakh. Everything runs in your browser.

Educational calculators — always consult a licensed professional before making financial decisions.

Your inputs

Last drawn salary (basic + DA)

Years of service

Eligible after 5 years of continuous service

Gratuity payable

₹2,88,462

tax-free

Per year of service

₹28,846

over 10 years

Formula amount

₹2,88,462

before ₹20 L cap

How it's calculated

Last drawn monthly salary₹50,000

Years of service10

Formula(15 ÷ 26) × salary × years

Computed gratuity₹2,88,462

Tax-free cap₹20,00,000

Gratuity payable₹2,88,462

ASSUMPTIONS — FY 2026-27. Under the Payment of Gratuity Act, gratuity = (15 ÷ 26) × last drawn monthly salary (basic + DA) × completed years of service, tax-free up to ₹20,00,000. Eligibility begins after 5 years of continuous service; a part-year over 6 months counts as a full year. Estimate only — consult a CA for tax treatment.

Runs entirely in your browser — nothing you enter is sent to us.How this works

Embed this calculator

Related calculators

Take-Home Salary Calculator Salary Breakup Calculator Income Tax Calculator

Rates, brackets and limits here are checked against primary sources. If a number still looks off, email support@realmoneyiq.com and we'll review and fix it.

RealMoneyIQ provides free educational calculators, not financial, tax, investment or legal advice. Results are estimates based on the assumptions you enter and publicly published rates; your actual outcome will differ. Always confirm decisions with a licensed professional who knows your full situation.