Settlement Agreement Calculator
Use this calculator to get a rough idea of what your settlement agreement might be worth. It estimates notice pay, statutory redundancy pay (basic award), holiday pay, lost benefits over the notice period and a range for additional negotiable compensation based on your situation.
Important
These figures are illustrative only. Every case is different. The calculator gives you a starting point for understanding the components of a settlement, but it is not legal advice and not a guarantee of what you should receive. Always get proper legal advice before accepting or rejecting any offer.
Step 1 of 3 · Your details
Your Details
Used for statutory redundancy calculation
I'll calculate your length of service
Check your employment contract
Your Situation
Extras and Offer (optional)
Add anything else owed or losable: holiday accrued but not taken, bonus, pension, car, medical. Leave any field blank to skip.
Enter the total amount you have been offered. I'll compare it against the calculated range.
How the calculator works
The calculator breaks your potential settlement into four parts, which is how most settlement agreements are structured in practice.
1. Notice pay
This is the pay you are entitled to for your contractual notice period. If your contract says 3 months notice, that is 3 months salary. Some agreements require you to work your notice; others pay it in lieu (PILON). Either way it forms part of the total package, and under post-employment notice pay (PENP) rules it is taxable as earnings.
2. Statutory redundancy / basic award
This is calculated using the government formula based on your age, length of service and weekly pay, with weekly pay capped at £751 (2026/27, SI 2026/310). You get 0.5 weeks per year of service under age 22, 1 week per year aged 22 to 40 and 1.5 weeks per year aged 41 and over. Maximum 20 years count. This is the floor: the minimum you should expect in most situations.
3. Benefits and extras
Holiday accrued but not taken, bonus or commission, the value of the employer pension contribution over the notice period and the cash equivalent of other benefits (car, medical, phone) are all things you can ask to be added. They are often overlooked in the first offer and are usually taxable as earnings.
4. Additional compensation
This is the negotiable element. It depends on your circumstances: the strength of any potential claims, whether your employer followed proper procedures, how urgently they want the matter resolved, and how good the negotiation is. I suggest a range of 1 to 6 months depending on your situation, but every case is different.
What affects the actual figure?
Strength of your legal claims. Do you have a credible Tribunal case? Discrimination and whistleblowing claims attract higher settlements because the employer's exposure is greater.
Procedural issues. Did your employer follow a fair process? Shortcuts and failures strengthen your position.
Your length of service. Longer service generally means higher statutory entitlements and more leverage.
Your employer's appetite for risk. Some employers will pay more to avoid Tribunal; others will take a harder line.
Timing. If your employer needs this resolved quickly, that can improve the offer.
Quality of the negotiation. Having a solicitor negotiate on your behalf usually results in a better outcome.
Get proper advice on your offer
This calculator gives you a starting point, but it is no substitute for a solicitor reviewing your actual agreement. I can assess whether your offer is fair, identify any claims you might not be aware of, and advise on whether there is room to negotiate. Get in touch with your agreement and I will give you a clear, honest assessment.
Last reviewed: 16 May 2026, by Steven Mather Solicitor.
Statutory limits source: The Employment Rights (Increase of Limits) Order 2026 (SI 2026/310), effective from 6 April 2026.