Non-Compete Cost Calculator
Estimate what a non-compete costs you: the salary gap against an alternative job, multiplied by the restriction period, plus what to negotiate.
Non-compete agreements restrict where you can work after leaving a company. The usual terms stop you joining a competitor, starting a competing business, or approaching former clients, for a set period and inside a set geographic area. Put a number on that before you sign it. A clause is far easier to negotiate while they still want to hire you.
The Formula:
Monthly Loss = (Current Monthly Salary) - (Alternative Monthly Salary)
Total Lost Income = Monthly Loss × Duration in Months
Where:
- Current Monthly Salary = your current annual salary divided by 12
- Alternative Monthly Salary = what you could realistically earn in a different field or a non-competing role during the restriction period
- Duration = the length of the non-compete restriction (typically 3 to 24 months)
Practical Example: You earn $120,000 per year as a software engineer. Your non-compete restricts you from working at any competing tech company for 12 months. The best alternative job you can find outside your field pays $70,000 per year. Monthly current: $120,000 / 12 = $10,000 Monthly alternative: $70,000 / 12 = $5,833 Monthly gap: $10,000 - $5,833 = $4,167 Total lost income over 12 months: $50,000
What to consider beyond the salary gap:
- Benefits loss: Health insurance, retirement contributions, and stock vesting may also be affected
- Career momentum: Time away from your field can set back your career trajectory
- Geographic scope: A nationwide restriction is far more costly than one limited to a single city
- Enforceability: Four states void them for nearly all employees, and many others set an income floor below which they cannot be used at all
Is it even enforceable?
Worth settling before you price anything. California, Minnesota, North Dakota and Oklahoma void non-competes for almost all employees, Minnesota having joined that list in July 2023. Several more, Washington, Oregon, Illinois and Colorado among them, enforce a non-compete only above a salary threshold that rises each year.
You may remember a nationwide ban. The Federal Trade Commission passed one in April 2024, a federal court set it aside that August, and the FTC dropped its appeal in 2025. So the rule never took effect and this is still decided state by state.
Common non-compete durations:
| Duration | Typical Context |
|---|---|
| 3-6 months | Sales roles, entry-level positions |
| 6-12 months | Mid-level professionals, tech |
| 12-24 months | Executives, senior roles with trade secrets |
Negotiation Tips:
- Ask for a shorter duration or narrower geographic scope
- Request “garden leave” pay — the employer pays your salary during the restriction period
- Negotiate a larger severance package if the non-compete is non-negotiable
- Some employers will waive the non-compete if you are laid off rather than quit
How we build and check this calculator
This calculator runs entirely in your browser, so the numbers you enter stay on your device. The math behind it is written by hand and tested against worked examples and standard references before the page goes live.
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