CTC Calculator (Cost to Company to In-Hand) 2026

Convert annual Cost to Company (CTC) into exact monthly take-home salary, gross pay, employer retirals, and tax deductions.

Enter CTC Package Details

Annual CTC Offer (₹)

₹3 Lakhs₹50 Lakhs₹1 Crore

Basic Pay (% of CTC)Typically 40% to 50% of CTC in Indian corporate offers.50% (₹6.00 L/yr)

Employer EPF (12%) in CTCGratuity (4.81%) in CTC

Employer NPS (% of Basic)0%

Annual Health Insurance Premium (₹)

Annual Variable / Performance Bonus (₹)

Select Income Tax Regime

Net Monthly In-Hand Take-Home

₹84,563/ Monthly (₹)

Annual In-Hand Take-Home: ₹10.15 L (84.6% Take-Home % of CTC)

Gross Monthly Salary₹90,763/mo₹10.89 L/yr

Income Tax (TDS)₹0Zero tax (Sec 87A)

Employee EPF (12% of Basic):-₹6,000/mo

Professional Tax (PT):-₹200/mo

Employer Retirals & Deductions Breakdown:₹8,404/mo

Monthly & Annual CTC Breakup Schedule

Cost Component	Cost Component	Monthly (₹)	Annual (₹)
Basic Salary	Gross Salary (A)	₹50,000	₹6.00 L
HRA (House Rent Allowance)	Gross Salary (A)	₹25,000	₹3.00 L
Special / Other Allowances	Gross Salary (A)	₹15,763	₹1.89 L
Employer EPF (12%)	Total Employer Retirals & Benefits (B)	₹6,000	₹72,000
Gratuity Contribution	Total Employer Retirals & Benefits (B)	₹2,404	₹28,846
Health Insurance (Employer Paid)	Health Insurance (Employer Paid)	₹833	₹10,000
Employee EPF (12% of Basic)	Total Employee Deductions (C)	-₹6,000	-₹72,000
Professional Tax (PT)	Total Employee Deductions (C)	-₹200	-₹2,400
Income Tax (TDS)	Total Employee Deductions (C)	₹-0	₹-0
Net Monthly In-Hand Take-Home		₹84,563	₹10.15 L

About CTC (Cost to Company) Structure in India

Cost to Company (CTC) represents the total expenditure an employer incurs on an employee annually. It is divided into direct benefits (Gross Salary), indirect benefits (Employer EPF, Gratuity, Health Insurance), and variable components (Performance Bonus).

This page is about how a CTC offer is structured. To see what actually reaches your bank account each month after income tax, employee EPF and professional tax, use the Salary Calculator. CTC Calculator (Cost to Company to In-Hand)

Official Sources & Regulatory Guidelines

Income Tax Department, Government of India: incometaxindia.gov.in
Employees’ Provident Fund Organisation (EPFO): epfindia.gov.in

CTC Breakdown & In-Hand Salary FAQs

Why is monthly in-hand salary significantly lower than CTC / 12?

CTC includes employer contributions like EPF (12%), Gratuity (4.81%), group insurance, and variable bonus. Additionally, income tax TDS, employee EPF, and professional tax are deducted from Gross Pay before your bank credit.

What is the ideal Basic Salary percentage in CTC?

Under the Code on Wages guidelines, Basic Salary + DA typically constitutes 40% to 50% of CTC. A higher basic increases retirement benefits (EPF, Gratuity) while a lower basic increases immediate monthly take-home.

Is Gratuity legally deductible from my CTC?

While Gratuity is paid by the employer under the Code on Social Security, 2020 (formerly the Payment of Gratuity Act, 1972) after 5 years of service, Indian corporate offer letters commonly structure it as a cost component (4.81% of Basic) inside the annual CTC.

How does New Tax Regime impact CTC take-home salary?

Under the New Tax Regime (Section 115BAC), lower tax slab rates apply and income up to ₹12.75 Lakhs is effectively tax-free with standard deduction (₹75k) and rebate (87A), resulting in higher monthly take-home for most employees without requiring 80C/80D investments.

How do I compare two offers with very different CTC structures?

Ignore the headline and rebuild both as guaranteed cash. Strip out employer EPF, gratuity provisioning at 4.81%, insurance premiums and notional ESOP value, then compare only fixed pay plus any bonus that is contractually guaranteed. A Rs 24 lakh offer with Rs 6 lakh of variable and ESOPs can pay less in hand than a Rs 20 lakh fully fixed offer. Then check the joining bonus clawback period and the notice period on each side.

Is variable pay guaranteed, and do ESOPs count inside CTC?

Variable pay is not guaranteed unless the offer letter says so — it is usually tied to company and individual rating, commonly pays out at 70% to 100% of target, and is taxed as salary at slab rate when paid. ESOP value in a CTC is notional: you owe nothing until you exercise, at which point the difference between fair market value and exercise price is taxed as a perquisite, and any gain after that is capital gains when you sell.

CTC to in-hand, with your numbers

Standard Formula

In-hand = CTC - Employer EPF - Employer NPS - Gratuity - Employee EPF - Professional tax - Income tax

Live Calculation (Plugging Your Values)

Annual CTC (CTC):₹12.00 L

Gross salary (Gross):₹10.89 L

Income tax (Tax):₹0

Substituted Equation:

₹12.00 L CTC becomes ₹84,563 in hand a month

Monthly in-hand:₹84,563

CTC includes money that never reaches your bank: the employer's EPF and NPS contributions and the gratuity accrual are costs to the company, not salary paid to you. Take those out to get gross, then remove your own EPF, professional tax and income tax to reach in-hand.

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