Estimate the financial impact of a non-compete worksheet using income, duration, scope, and mitigation assumptions.
Non-compete agreements restrict an employee or contractor from working for competitors or starting a competing business for a period of time and within a stated geography. The financial impact of that restriction depends on the income at stake, the duration, the practical breadth of the restriction, and how much alternative work is realistically available.
This calculator estimates that impact by combining those inputs into a simple worksheet. It can help employees, employers, and counsel compare scenarios when negotiating scope, duration, or compensation.
Because enforceability varies by state and by industry, the result should be treated as a planning estimate rather than a statement of what a court will enforce.
A simple value worksheet is useful when you need to see how duration, geography, and mitigation assumptions change the practical impact of a non-compete. It helps frame negotiations, but it does not answer the enforceability question by itself.
Gross Impact = Annual Income × Duration × Geographic Scope Factor Net Impact = Gross Impact − Mitigation Income
Result: $200,000 net non-compete value
Gross impact = $150,000 × 2 × 0.80 = $240,000. Mitigation = $40,000. Net impact = $240,000 − $40,000 = $200,000.
Some states largely prohibit employee non-competes, while others still enforce them when the duration, geography, and business interest are considered reasonable. That means the same worksheet result can matter very differently depending on the governing law.
Restrictions are often easier to evaluate when there is compensation attached, such as garden leave or a buyout. Modeling the financial effect can help show whether the proposed consideration is proportionate to the restriction.
Use the number to compare scenarios, not to predict litigation outcomes. Actual exposure depends on enforceability, drafting, business context, and whether the person can realistically mitigate the restriction with alternative work.
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This page is a planning worksheet, not a legal determination of enforceability. It turns the income at stake, duration, scope factor, and mitigation assumptions into a scenario estimate so users can compare how a restriction changes the practical cost. The worksheet is meant for negotiation and budgeting, not for deciding whether a non-compete is valid in a particular state.
A non-compete is a contractual clause that prevents an employee from working for competitors or starting a competing business for a defined period after leaving. It typically specifies duration, geography, and scope of restricted activities.
Geographic scope ranges from a specific city or county (narrow, lower impact) to nationwide or global (wide, higher impact). The broader the scope, the harder it is to find non-competing work and the greater the worksheet impact.
Mitigation is the income the restricted person can earn from work that does not violate the non-compete. This might include work in a different industry, consulting in non-restricted areas, or employment outside the restricted geography.
Adequate consideration may include a job offer, continued employment, a signing bonus, stock options, or access to confidential information. The worksheet does not decide whether the consideration is legally sufficient.
Yes. You can negotiate the duration, geography, scope of restricted activities, or request a buyout clause. The worksheet helps compare scenarios before and after those changes.