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Settlement Agreement Calculator

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Settlement Agreement FAQs

How this calculator works

This estimate is built around the same four factors a specialist employment solicitor uses to value a UK settlement agreement.

1. Statutory and contractual entitlements

Your starting point is what the law guarantees you. Statutory redundancy pay is calculated from age, length of service, and weekly pay (capped at £751/week in 2026/27). On top of that, you are owed your contractual notice period or a payment in lieu of notice (PILON).

2. Uplift factors

Settlement values rise above the statutory floor when there is a stronger underlying claim. Based on the ranges we typically see in our experience, common uplift factors include: unfair-dismissal allegations with a clear procedural breach, discrimination, whistleblowing, performance-management disputes that look pretextual, and seniority or restrictive-covenant complications.

Indicative only, based on our experience of typical outcomes; not a promise of any figure. Read how our figures are checked.

3. The £30,000 tax-free allowance

The first £30,000 of a genuine termination payment is normally free of income tax and National Insurance under section 401 of the Income Tax (Earnings and Pensions) Act 2003. Sums above £30,000 are taxed as income. PILON is taxable from the first pound. Getting this allocation right materially affects your take-home. Use the "Tax on my payment (PENP)" tab above, or our dedicated redundancy tax calculator, for the full taxable/tax-free split with worked examples.

4. Comparing the offer

The offer your employer puts on the table sits somewhere between your statutory floor (entitlement plus notice) and the realistic ceiling (statutory plus notice plus uplift). The wider the gap, the more there is to negotiate. We tell you honestly when an offer is fair and when it is low.

Which tool do you need?

This page estimates what a settlement agreement could be worth overall, including the negotiable amount above that statutory floor.

This calculator gives an indicative range only. It is not legal advice. The actual value of your settlement depends on the specific facts of your case. For a real review of your actual agreement, complete the calculator above and send us your agreement using the free-review form — your employer pays our fee in nearly all cases. Older paperwork sometimes still calls this a compromise agreement: it is the same document under its pre-2013 name, and this calculator applies the same way.