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CTC Calculator
Turn your annual cost to company into a clear salary breakup and an estimated monthly take-home figure. Enter your numbers and press Calculate.
Written by TopicDrill Editorial Team·Updated June 2026
Where your CTC goes
Take-home pay$91,315
Income tax$20,045
Retirement (your share)$3,240
Employer retirement$3,240
Gratuity provision$2,160
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How the CTC calculator works
Your cost to company is split into the parts that reach your payroll and the parts your employer sets aside on your behalf. First we carve out basic pay as a share of CTC, then the employer retirement contribution and gratuity provision are calculated on that basic. Whatever is left becomes your allowances. The breakdown bar above shows each slice.
To reach take-home pay, we subtract your own retirement contribution and income tax from your gross salary. The result is a realistic estimate of what actually lands in your account each month, which is usually well below the headline CTC.
A quick example
Suppose your CTC is $120,000 with basic pay at 45%, a 6% retirement rate and a 4% gratuity provision. Basic is $54,000, the employer retirement contribution is about $3,240 and gratuity is about $2,160. After your own retirement share and an 18% effective tax rate, your take-home lands near $4,400 a month.
Things to keep in mind
CTC structures and tax rules differ widely by country and employer, so this is an estimate meant for planning and offer comparisons. For general guidance on understanding pay, the Consumer Financial Protection Bureau is a useful starting point. You can also compare offers with our other free calculators.
Frequently asked questions
What is CTC?
CTC, or cost to company, is the total annual amount an employer spends on you. It includes your basic pay and allowances plus employer-side items you never see in your bank account, such as retirement contributions and a gratuity provision. Your take-home pay is always lower than your CTC.
Why is my take-home pay less than my CTC?
Several parts of CTC do not reach your bank account. Employer retirement contributions and gratuity are set aside for the future, your own retirement contribution is deducted from your salary, and income tax is withheld. What remains is your take-home pay.
What is basic pay and why does it matter?
Basic pay is the core fixed part of your salary, usually 40% to 50% of CTC. Many other figures, including retirement contributions and gratuity, are calculated as a percentage of basic, so a higher basic raises those deductions and provisions.
Is this calculator accurate for my country?
It uses a common, simplified structure and an effective tax rate you supply, so treat the result as an estimate. Exact deductions, tax slabs and statutory rules vary by country and employer. Check your official offer letter or payslip for precise figures.
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