CTC to In-hand Salary Calculator
The number on your offer letter is not the number in your account. This walks through every deduction between cost to company and monthly take-home.
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How it works
Cost to company is exactly that — what you cost your employer, including contributions that never pass through your hands. Employer retirement contributions and gratuity provisions are part of the CTC figure but are not salary you can spend.
What is left is gross salary, and from that come your own retirement contribution, any payroll taxes and income tax. The gap between the headline CTC and monthly take-home is routinely 25–35%, which is why the two figures should never be compared directly between offers.
In-hand = (CTC − employer contributions − employee contributions − taxes) ÷ 12
- CTC — total cost to company, including everything the employer pays out on your behalf
- Gross salary — CTC less the employer-side contributions
- In-hand — gross less your own contributions and taxes
Worked example
A 1,800,000 CTC with 12% employer and employee retirement contributions
Inputs
Results
Nearly 18% of the CTC never reaches the bank account — and well over half of that is retirement money you do get, just not now.
Frequently asked questions
Why is my take-home so much lower than my CTC?
Because CTC includes employer-side costs you never receive as cash — retirement contributions, gratuity provisions, insurance premiums — plus your own contributions and income tax. A 25–35% gap is normal.
What is basic salary and why does it matter?
Basic is the core component that retirement contributions and gratuity are calculated on. A higher basic means larger retirement deductions and lower immediate take-home, but more long-term savings and a higher gratuity entitlement.
Is the employer contribution really mine?
Yes, but it goes into your retirement account rather than your salary account. It is real compensation with a delay attached, so do not dismiss it when comparing offers — just do not spend it either.
Is my data sent anywhere?
No. The calculation runs entirely in your browser. Nothing you type is transmitted to us or stored.
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