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Tax Calculators

Leave Encashment Calculator

Compute the leave encashment payable at retirement or resignation, and its tax treatment.

About the calculator

What is the Leave Encashment Calculator?

The Leave Encashment Calculator is a free online tool that helps you make informed decisions about your money. Enter your numbers and the calculator gives you instant, accurate results.

Use it to compare scenarios, plan goals and validate assumptions — all without signing up.

Formula used
  • Encashment
    Amount = (Last Salary / 30) × Unused Leave Days

Why use the Leave Encashment Calculator?

Financial planning works only when it's specific. The Leave Encashment Calculator converts assumptions into concrete numbers — so you can choose between scenarios with confidence rather than guesswork.

How it helps

By tweaking inputs and instantly seeing the impact, you build intuition for how the underlying variables interact. This is far more useful than abstract formulas alone.

What to remember

Calculators show possible outcomes based on the assumptions you provide. Real-world results may vary; review your plan periodically and adjust as your income, goals and circumstances evolve.

Frequently Asked Questions

Non-government retirees up to ₹25L lifetime limit (revised in FY 23-24).
Yes — fully taxable at slab.
Least of: actual encashment, 10 months' salary, or earned leave (capped at 30/year).
Fully exempt from tax.
If close to retirement, carry forward to maximize tax-free benefit.
(Last drawn salary / 30) × days, per common practice.

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