The Gratuity Calculator is a free tool that helps you calculate gratuity using the formula Gratuity = (15 x last salary x years) / 26. Enter your values above and press Calculate to get gratuity amount instantly, with a full step-by-step breakdown.
What is the Gratuity Calculator?
The gratuity calculator is a free online tool that helps you calculate gratuity quickly and accurately. It applies the standard formula Gratuity = (15 x last salary x years) / 26 to the values you enter and, when you press Calculate, displays the result together with a clear, step-by-step explanation of how the answer was reached.
Also known as: gratuity calculation, gratuity formula.
How to use the Gratuity Calculator
- Enter last drawn monthly salary (basic + DA).
- Enter completed years of service.
- See your gratuity.
Formula used
The gratuity calculator is based on this formula:
Gratuity = (15 x last salary x years) / 26Each term in the formula corresponds to one of the inputs explained below. The calculator performs the arithmetic for you and shows every step so you can check the working by hand if you wish.
Worked example
Suppose you enter 50000, 10 years. The calculator works as follows:
| Inputs | 50000, 10 years |
|---|---|
| Working | 15 x 50000 x 10 / 26 |
| Result | Gratuity about 288462 |
Step-by-step calculation
- Apply the formula:
Gratuity = (15 x last salary x years) / 26 - Substitute your values: 15 x 50000 x 10 / 26
- Read the result: Gratuity about 288462
Inputs explained
- Last drawn monthly salary (basic + DA) — the last drawn monthly salary (basic + da) used in the calculation.
- Years of service (years) — the years of service used in the calculation.
Understanding your result
- Gratuity amount — the calculated gratuity amount.
Benefits and practical uses
The gratuity calculator saves time and removes the risk of manual errors when you need to calculate gratuity. It is useful for students, professionals and anyone who wants a fast, dependable answer. Results update the moment you press Calculate, work on any device, and can be copied or shared in a single click — and because the maths runs in your browser, your figures stay completely private.
Tips for an accurate result
- Keep all related inputs in the same units.
- Use the worked example above to confirm you are entering values in the right places.
- Review the assumptions below so the result fits your situation.
- Press Reset to clear everything and try a different scenario.
Common mistakes to avoid
- Entering values in the wrong unit (mismatched units give wrong answers).
- Leaving a required field empty — the calculator will ask you to fill it in.
- Using an old year’s rates — always confirm the current slabs.
Assumptions and limitations
- Covered under the Gratuity Act (15/26 formula).
- Service over 6 months rounds up to a year.
- Tax exemption cap not applied here.
Frequently asked questions
Who is eligible for gratuity?
Employees who complete at least 5 years of continuous service under the Payment of Gratuity Act.
Is gratuity tax-free?
Gratuity is tax-exempt up to 2000000 for covered employees.
How do I use the Gratuity Calculator?
Enter your values in the fields, then press the Calculate button to see the result. Use Reset to clear the form and start again. Nothing is calculated until you click Calculate.
What formula does the Gratuity Calculator use?
It uses the standard formula: Gratuity = (15 x last salary x years) / 26. The full step-by-step working is shown with every result so you can verify it.
What information do I need to use the gratuity calculator?
You need: last drawn monthly salary (basic + da), years of service. Sensible example values are pre-filled so you can see how it works.
Is the Gratuity Calculator free to use?
Yes. Every DigiToolkit calculator is completely free, with no sign-up, no login and no usage limits.
Does the Gratuity Calculator work on mobile phones?
Yes. The calculator is mobile-first and works on phones, tablets and computers in any modern browser.
Do I need to install an app?
No. The gratuity calculator runs directly in your web browser — there is nothing to download or install.
Is my data private when I use this calculator?
Yes. All calculations run inside your browser. The numbers you enter are never uploaded to a server or shared with anyone.
How accurate is the Gratuity Calculator?
It uses the generally accepted formula for gratuity and computes to several decimal places. Results are accurate for the assumptions listed on this page.
Can I copy or share my result?
Yes. After calculating, use the Copy button to copy the result, or Share to copy the page link.
Why is nothing showing until I press Calculate?
By design, the calculator only computes when you press Calculate, so you can finish entering all your values first. Press Reset any time to clear everything.