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India CTC Calculator

Cost to company (CTC), the way salaries are usually quoted in India, includes amounts you never see in your bank account. Enter the annual CTC and basic percentage to separate employer contributions from gross salary and estimated in-hand pay.

Ideal for comparing two offers where one loads the CTC with benefits.

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Insurance premium, meal cards, joining bonus and similar CTC add-ons.

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CTC breakdown

Employer PF (12% of basic)Gratuity (4.81% of basic)Gross salary per year
Annual CTC
₹12,00,000.00
Employer PF (12% of basic)
₹57,600.00
Gratuity (4.81% of basic)
₹23,088.00
Other benefits
₹0.00
Gross salary per year
₹11,19,312.00
Gross salary per month
₹93,276.00
Employee PF
₹57,600.00
Professional tax
₹2,400.00
Estimated monthly in-hand
₹88,276.00
Estimated annual in-hand
₹10,59,312.00
CTC includes employer contributions you never receive as salary.

Your ₹12,00,000.00 CTC works out to about ₹88,276.00 a month in hand. Most of the gap is employer PF and gratuity, which are real costs to your employer but never reach your bank account.

Smart next steps

Formula

Employer PF = Basic × 12%

Gratuity = Basic × 4.81%

Gross salary = CTC − Employer PF − Gratuity − Other benefits

In-hand = Gross − Employee PF − Professional tax − Income tax

Gratuity at 4.81% of basic is the standard annual provision used by Indian employers.

Worked example

A ₹12,00,000 CTC with basic at 40% carries ₹57,600 employer PF and ₹23,088 gratuity, leaving about ₹11,19,312 gross and roughly ₹86,300 monthly in-hand before income tax.

How to use this calculator

  1. 1Enter the annual CTC being offered or budgeted.
  2. 2Enter the standard components: basic percentage, PF treatment and other benefits.
  3. 3Read the gross salary, deductions and the in-hand figure the CTC translates to.

When businesses use it

  • Building a salary offer within a hiring budget.
  • Explaining the gap between CTC and in-hand pay to a new joiner.
  • Comparing two offers with the same CTC but different PF and benefit structures.

What CTC includes that your bank account never sees

Cost to company is exactly what the name says: everything the employer spends on you in a year. That includes items you never receive as cash: the employer's 12% provident fund contribution, gratuity provision at 4.81% of basic, insurance premiums, the employer's share of ESI, and sometimes notional perks such as a cab facility or a meal card. Comparing two offers on CTC alone can therefore be badly misleading.

The gap between CTC and take-home has three layers. First, employer contributions come out to leave gross salary. Second, employee deductions (PF, professional tax and income tax) come out of gross to leave net pay. Third, variable pay and joining bonuses inflate the annual CTC but arrive quarterly or annually rather than every month.

When you compare offers, convert both to monthly in-hand under the same tax regime. A ₹14 lakh CTC that is 25% variable can easily deliver less monthly cash than a ₹12 lakh fixed CTC, and only the in-hand comparison makes that visible.

Questions to ask before accepting an offer

  • What percentage of CTC is fixed and what is variable or performance-linked?
  • Is the employer PF contribution inside CTC or over and above it?
  • Is gratuity shown in CTC even though it vests only after five years?
  • Are insurance premiums and meal cards counted as part of the package?

Wondering what actually happens to that employer PF figure once it leaves your CTC? See Provident Fund explained for the EPS split, your UAN, and when you're actually allowed to withdraw it.

Learn the maths behind it

  • CTC vs take-home salary

    CTC includes employer PF, gratuity and benefits. Take-home is gross pay minus PF, professional tax and TDS.

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Frequently Asked Questions

Employer PF, gratuity, insurance and bonuses sit inside CTC but are not paid monthly, and PF, professional tax and TDS are deducted from gross.

Most employers include a 4.81% provision, but it is only payable after five years of continuous service.

It is exact for PF and professional tax. Income tax depends on your regime and declarations, so enter your own figure for precision.

Employers commonly include the 4.81% annual provision, but it is only payable after five years of continuous service, so treat it as deferred rather than current pay.

A higher basic increases PF and gratuity, which lowers immediate in-hand pay but raises long-term savings and retirement benefits.

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Calculations happen instantly in your browser. Your calculator inputs aren't sent to our servers. KaroDesk provides calculations and information for general informational purposes. Results should be verified against applicable laws, official notifications, employer policies, lender terms, or professional advice where appropriate. Read our full disclaimer.