CTC Calculator

Calculate your take-home salary from Cost to Company (CTC) with detailed breakdown

Enter the total CTC as mentioned in your offer letter

30% 40% 50% 60%

Most companies keep Basic at 40-50% of gross salary

40% (Non-Metro) 50% (Metro)
Include Employer PF

12% of Basic

Include Gratuity

4.81% of Basic

Typically ₹200/month (varies by state, max ₹2,500/year)

HRA Tax Exemption (Optional)

Enter your monthly rent to calculate HRA tax exemption

Metro City

Delhi, Mumbai, Chennai, Kolkata

Formula: HRA Exemption = Min(Actual HRA, Rent - 10% Basic, of Basic)

Your Monthly Take-Home Salary

Annual:

Gross Salary

Per Month

Take-Home

Per Month

Total Deductions

Per Month

HRA Tax Exemption Calculation

Total HRA Received

Annual

HRA Exempt

Tax Free

Taxable HRA

Add to Income

How was this calculated?

  • 1. Actual HRA:
  • 2. Rent - 10% of Basic:
  • 3. of Basic:

✓ HRA Exemption is the minimum of the above three values

CTC Composition

Take-Home
PF

Take-Home

Employee PF

Employer PF

Gratuity

Prof. Tax

Complete Salary Breakdown

Component Monthly Annual
Cost to Company (CTC)
Earnings (Gross Salary)
Basic Salary
House Rent Allowance (HRA)
Special Allowance
Total Gross Salary
Employer Contributions (Part of CTC)
Employer PF Contribution
Gratuity
Employee Deductions
Employee PF Contribution
Professional Tax
Total Deductions
Take-Home Salary (In-Hand)

Note: Income Tax Not Included

This calculation shows take-home salary before income tax (TDS) deduction. Your actual in-hand salary will be lower after TDS is deducted based on your tax slab and investments.

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About CTC Calculator

What is CTC (Cost to Company)?

CTC (Cost to Company) is the total amount a company spends on an employee in a year. It includes not just the salary paid directly to the employee but also various benefits, allowances, and statutory contributions made on their behalf.

Important: CTC is NOT the same as your take-home (in-hand) salary. Your actual salary received is significantly less than the CTC due to various deductions.

How to Use This Calculator

  1. Enter Annual CTC: Input your total CTC as mentioned in your offer letter
  2. Adjust Basic Salary %: Typically 40-50% of CTC (default is 40%)
  3. Configure Components: Toggle gratuity and employer PF as per your salary structure
  4. View Results: See your monthly and annual take-home salary with complete breakdown

CTC Components Explained

Fixed Components

Component Description
Basic Salary Core salary component, typically 40-50% of CTC. Fully taxable.
HRA House Rent Allowance, usually 40-50% of Basic. Partially tax-exempt if paying rent.
Special Allowance Balancing component after other allocations. Fully taxable.

Employer Contributions (Part of CTC)

Component Rate Description
EPF (Employer) 12% of Basic Employer's contribution to Provident Fund
Gratuity 4.81% of Basic Calculated as (15/26) × Basic × Years/Years

Employee Deductions (Reduces Take-Home)

Deduction Rate Description
EPF (Employee) 12% of Basic Your contribution to Provident Fund
Professional Tax ₹200/month State-level tax (varies by state)
Income Tax (TDS) Varies Based on income tax slab and regime

The Formulas

Gross Salary Calculation:

Gross Salary = CTC - Employer PF - Gratuity - Other Benefits

Basic Salary:

Basic = Gross × (Basic% / 100)

Take-Home Salary:

Take-Home = Gross - Employee PF - Professional Tax - TDS

EPF Contribution:

Employer EPF = 12% of Basic (capped at ₹1,800/month for Basic up to ₹15,000)
Employee EPF = 12% of Basic

Gratuity:

Gratuity = (15/26) × Basic Monthly × Years = 4.81% of Annual Basic

Frequently Asked Questions

What percentage of CTC is take-home salary?

Typically, take-home salary is around 70-80% of CTC for most salary structures, depending on your tax bracket and company policies.

Why is my in-hand salary much less than CTC?

CTC includes employer contributions (PF, gratuity, insurance) and gross salary. Deductions like employee PF, professional tax, and income tax further reduce your in-hand amount.

What is a good Basic salary percentage?

A higher Basic (50%+) increases PF contributions but also increases taxable income. A lower Basic (40%) reduces tax but may affect loan eligibility and retirement savings.

Is Gratuity always part of CTC?

Gratuity is mandatory for organizations with 10+ employees. It's payable after 5 years of service but companies provision for it from day one in CTC.

How accurate is this calculator?

This calculator provides estimates based on standard salary structures. Actual amounts may vary based on your company's specific policies, state tax rates, and individual tax situations.

Disclaimer: This calculator provides estimates for informational purposes only. Actual salary components and deductions depend on your employer's policies, applicable tax laws, and individual circumstances. Consult with your HR or a tax professional for exact figures.

Quick Reference

💰 Typical CTC Breakdown

  • • Basic: 40-50% of Gross
  • • HRA: 40-50% of Basic
  • • Employer PF: 12% of Basic
  • • Gratuity: ~4.81% of Basic

✅ Tips for Negotiation

  • • Ask for in-hand salary clarity
  • • Higher Basic = Higher PF savings
  • • Check variable pay components
  • • Verify insurance & other benefits