How to use this calculator
- Enter or choose basic salary (per year).
- Enter or choose allowances (housing, travel, other, per year).
- Enter or choose variable pay or bonus (per year).
- Enter or choose employer retirement contribution.
- Enter or choose insurance and other benefits (per year).
- The cost to company (per year) updates as you type. Use Copy result or Share to keep it.
Method
Fixed = Basic + Allowances; Gross = Fixed + Variable; Employer costs = Basic × Retirement% + Insurance + Other; CTC = Gross + Employer costs
- Retirement%
- employer retirement contribution as a % of basic, as stated in your package
Worked example
- Gross = 600,000 + 400,000 + 100,000 = 11,00,000.
- Employer costs = 600,000 × 12% + 25,000 = 72,000 + 25,000 = 97,000.
- CTC = 11,00,000 + 97,000 = 11,97,000, or 99,750 a month.
This package costs the employer 11,97,000 a year, of which 10,00,000 is fixed pay and 1,00,000 is variable.
What the result means
CTC is the employer’s view. What you actually receive each month is lower: variable pay may not be paid in full, employer contributions go to a fund, and your own tax and deductions come out of gross pay.
Assumptions and limits
- All amounts are annual and in the same currency.
- The employer retirement rate is applied to basic salary only.
- Take-home pay is not calculated, because income tax and employee contributions depend on country-specific rules.
Questions
Is CTC the same as gross salary?
No. Gross salary is what is paid to you before deductions; CTC adds what the employer pays on your behalf, such as retirement contributions and insurance.
Why is the variable part shown separately?
Because it depends on performance. Compare offers on fixed pay as well as CTC.
Please note: This calculator gives estimates for planning. It is not financial advice, and lenders’ actual terms, fees and rounding may differ.