CTC Calculator - Cost to Company Calculator 2025

Calculate your complete salary breakdown including in-hand salary, deductions, taxes, and benefits. Free online tool for employees and HR professionals.

Enter Your Salary Details

Your Salary Breakdown

Annual CTC ₹12,00,000
Monthly Gross Salary ₹85,833
Monthly Deductions ₹14,667
Monthly In-Hand Salary ₹71,167
Annual In-Hand Salary ₹8,54,000

Detailed Monthly Breakdown

Component Monthly Amount

CTC Calculator: Complete Guide to Cost to Company Calculation

A CTC (Cost to Company) Calculator is an essential tool for both employees and employers to understand the complete breakdown of salary components. CTC represents the total amount a company spends on an employee annually, including direct benefits, indirect benefits, and statutory deductions.

What is Cost to Company (CTC)?

Cost to Company (CTC) is the total cost incurred by a company for an employee in a year. It includes:

How to Use Our CTC Calculator

  1. Enter Annual CTC: Input your total Cost to Company (e.g., ₹12,00,000)
  2. Set Basic Salary Percentage: Typically 40-50% of CTC (default is 40%)
  3. Set HRA Percentage: Usually 40-50% of basic salary (default is 40%)
  4. Select City Type: Choose Metro or Non-Metro for accurate HRA tax exemption
  5. Toggle Additional Components: Include/exclude bonus, gratuity, professional tax
  6. Click Calculate: Get instant detailed salary breakdown

Note: This CTC calculator uses standard Indian salary structure components and follows current tax laws. The actual salary structure may vary by company policy and employment agreement.

Key Components of CTC Explained

1. Basic Salary

The core component of your salary, usually 40-50% of CTC. This amount is fully taxable and forms the basis for calculating PF, gratuity, and other allowances.

2. House Rent Allowance (HRA)

Given to employees for accommodation expenses. HRA exemption is calculated as the minimum of:

3. Provident Fund (PF)

Both employee and employer contribute 12% of basic salary to EPF. The employee's contribution is deducted from salary, while employer's contribution is added to CTC.

4. Gratuity

A lump sum payment by employer after 5+ years of service. Calculated as: (Last drawn salary × 15/26 × Number of years of service).

5. Professional Tax

State-level tax deducted from salary, typically ₹200-₹250 per month depending on the state.

CTC vs In-Hand Salary vs Gross Salary

Importance of CTC Calculator for Employees

1. Salary Negotiation: Understand what components to negotiate (basic, HRA, allowances)

2. Tax Planning: Identify tax-saving components in your salary structure

3. Job Comparison: Compare job offers accurately by calculating in-hand salary

4. Financial Planning: Plan expenses and investments based on actual take-home

5. Loan Eligibility: Determine loan eligibility based on net salary

CTC Calculator for HR Professionals

HR managers can use this tool to:

FAQs About CTC Calculator

Q: Is CTC same as take-home salary?
A: No, CTC is the total cost to company. Take-home salary is after deducting PF, taxes, and other deductions.

Q: What percentage of CTC is in-hand salary?
A: Typically 65-70% of CTC becomes in-hand salary, but it varies based on salary structure and deductions.

Q: How to increase in-hand salary without increasing CTC?
A> Optimize salary structure by increasing HRA, LTA, food coupons, and other tax-free components.

Q: Is bonus part of CTC?
A: Yes, annual bonus and incentives are included in CTC calculation.

Q: How to calculate monthly salary from CTC?
A: Use our CTC calculator above. Monthly salary = (CTC ÷ 12) - monthly deductions.

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