Employment Agreement Cost Calculator
Calculate the cost of restrictive covenants including non-compete, garden leave, and severance.
Legal Disclaimer
This calculator provides general estimates only and does not constitute legal advice. Laws, regulations, and court procedures vary significantly by jurisdiction. Consult a licensed attorney in your area for advice specific to your situation.
Inputs
Results
Total Cost Per Employee
$121,000.00
≈ 8 used cars
Total for All Employees
$605,000.00
≈ 14 Teslas
How to Use This Calculator
- Enter the employee's annual salary and non-compete duration in months.
- Set garden leave pay rate (% of salary) and severance multiple (× annual salary).
- Enter legal drafting cost and number of employees receiving this agreement.
- Review Total Cost Per Employee, Total for All Employees, Garden Leave Cost, and Severance Cost.
How the result changes with Employee Annual Salary
| Employee Annual Salary | Total Cost Per Employee | Total for All Employees |
|---|---|---|
| $500,000.00 | $501,000.00 | $2,505,000.00 |
| $1,750,000.00 | $1,751,000.00 | $8,755,000.00 |
| $3,250,000.00 | $3,251,000.00 | $16,255,000.00 |
| $4,500,000.00 | $4,501,000.00 | $22,505,000.00 |
What each input means
- Employee Annual Salary
- Annual base salary of the employee.
- Non-Compete Duration (Months)
- Duration of non-compete restriction.
- Garden Leave Pay Rate
- Percentage of salary paid during garden leave.
- Severance Multiple (x Salary)
- Severance as a multiple of annual salary.
- Legal Drafting Cost
- Attorney cost for drafting the agreement.
- Number of Employees
- Number of employees receiving this agreement.
How this is calculated
Worked example, using the default values
- Identify Input Parameters4 parametersEmployee Annual Salary = 120000, Non-Compete Duration (Months) = 12, Garden Leave Pay Rate = 50, Severance Multiple (x Salary) = 0.5 = 6 input(s) provided
- Calculate Total Cost Per EmployeeTotal Cost Per Employee121000 = $121,000
- Calculate Total for All EmployeesTotal for All Employees605000 = $605,000
- Calculate Garden Leave CostGarden Leave Cost60000 = $60,000
- Calculate Severance CostSeverance Cost60000 = $60,000
Engine last updated .
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