Retention bonus calculator
Use this page for service-based retention bonus planning. It helps compare all-or-nothing retention bonuses, partial-credit assumptions, and the economic effect of an upfront payment with clawback risk.
Use this when
- The payment is tied to staying until a date or milestone.
- You need to compare end-paid versus upfront-with-clawback structures.
- You want a simpler first-pass estimate before reading the contract.
How retention bonus plans usually work
Retention bonuses are not really “performance bonuses.” They are usually service-based payments designed to keep someone in role through a critical period, transaction, project, or leadership transition.
Lower clawback complexity, but the employee waits longer for the payout.
More immediate value, but usually paired with a repayment or clawback clause if the employee leaves early.
What to check before relying on the number
Retention bonus FAQ
How is a retention bonus usually structured?
Retention bonuses are often flat amounts tied to staying until a specific date, milestone, or service period. Some are paid upfront and subject to clawback, while others are paid at the end of the retention period.
Can a retention bonus be prorated?
Sometimes, but many plans are all-or-nothing. Use the proration input only if your policy actually allows partial credit.
Should I treat this like normal annual bonus pay?
No. Retention bonuses usually solve a different business problem and may have different payment timing, clawback rules, and contract language.