CTC Breakup Calculator

Salary

Turn a single CTC figure into a full salary structure — Basic, HRA, special allowance, employer PF and gratuity — and see the monthly in-hand it really delivers.

Free · No sign-up · Private6 min readUpdated 27 July 2026

In short: A CTC breakup splits your annual cost to company into Basic (typically 30–60% of CTC), HRA (a share of Basic), employer PF at 12% of Basic, a gratuity provision of 4.81% of Basic, and a balancing special allowance. Gross salary is CTC minus employer retirals, and in-hand is gross minus tax and other deductions.

Your inputs

Results

Monthly in-hand

₹88,042

Annual gross salary

₹11,19,312

CTC − employer PF − gratuity

Basic salary

₹4,80,000

40% of CTC

Employer PF

₹57,600

12% of basic

CTC breakup

How your CTC splits across Basic, HRA, special allowance, employer PF and gratuity.

CTC component breakup

CTC component breakup
Component	Annual	Monthly
Basic salary	₹4,80,000	₹40,000
HRA	₹2,40,000	₹20,000
Special allowance	₹3,99,312	₹33,276
Employer PF	₹57,600	₹4,800
Gratuity provision	₹23,088	₹1,924
Total CTC	₹12,00,000	₹1,00,000
Gross salary (CTC − retirals)	₹11,19,312	₹93,276
Income tax (New regime)	₹62,813	₹5,234
Other deductions	₹0	₹0
Net in-hand	₹10,56,499	₹88,042

Employer PF assumed at 12% of full basic; gratuity provisioned at 4.81% of basic. Tax uses the New regime.

Formula

Special allowance = CTC − Basic − HRA − Employer PF − Gratuity; Gross = CTC − Employer PF − Gratuity; In-hand = Gross − Tax − Other deductions

Basic: Basic % × CTC (usually 30–60%)
HRA: HRA % × Basic
Employer PF: 12% of Basic
Gratuity: 4.81% of Basic (15/26 of a month per year)
Tax: New-regime slab tax on gross, incl. 4% cess

Step-by-step calculation

Worked with the default values.

1
Basic salary
40% × ₹12,00,000
= ₹4,80,000
2
HRA
50% × ₹4,80,000
= ₹2,40,000
3
Employer PF + gratuity
12% × basic + 4.81% × basic
= ₹80,688
4
Gross salary
₹12,00,000 − ₹80,688
= ₹11,19,312
5
Net in-hand (annual)
Gross − ₹62,813 tax − ₹0 other
= ₹10,56,499

How it works

Basic salary is set as a percentage of CTC and anchors the whole structure — HRA, PF and gratuity are all derived from it.
Employer PF (12% of Basic) and the gratuity provision (4.81% of Basic) are retirals bundled inside CTC, so they are removed to arrive at gross salary.
Special allowance absorbs whatever is left after the fixed components, and gross salary is then taxed under the New regime to reveal your monthly in-hand.

Examples

₹12,00,000 CTC, Basic 40%, HRA 50% of Basic

Basic is ₹4,80,000, HRA ₹2,40,000, employer PF ₹57,600 and gratuity ₹23,088. Gross salary is about ₹11,19,000 and monthly in-hand lands in the ₹85,000–₹90,000 range after New-regime tax.

₹24,00,000 CTC, Basic 50%, HRA 40% of Basic

Basic is ₹12,00,000 with HRA ₹4,80,000, employer PF ₹1,44,000 and gratuity ₹57,720. Gross salary is roughly ₹21,98,000, and higher slabs pull monthly in-hand toward the ₹1,45,000 mark.

Understanding the CTC Breakup Calculator

What a CTC breakup really tells you

Cost to company is the headline number in every offer letter, but it bundles together far more than the salary you actually receive. A CTC breakup unpacks that single figure into its standard components — Basic, HRA, special allowance, employer provident fund and a gratuity provision — so you can see where every rupee is allocated and, crucially, how much reaches your bank account.

The structure starts with Basic salary, usually 40–50% of CTC. Basic is the anchor: it drives HRA, both provident-fund contributions and the gratuity accrual. Because so much flows from it, the Basic percentage is one of the most consequential numbers in your salary.

From CTC to gross to in-hand

Two contributions inside CTC never reach you as cash. The employer’s provident fund (12% of Basic) is deposited into your EPF account, and the gratuity provision (4.81% of Basic, reflecting 15 days of Basic per year of service) is set aside for a future payout. Subtracting these employer retirals from CTC gives your gross salary — the amount actually payable to you.

HRA is pegged to Basic, typically 40% for non-metro and 50% for metro cities.
Special allowance is the balancing figure and is fully taxable.
Income tax under the New regime, with 4% cess, is then applied to gross salary.

What remains after tax and any other deductions is your in-hand pay — the number you should budget around, not the CTC you were quoted.

Structuring your salary deliberately

Two employees on identical CTCs can take home very different amounts. A higher Basic grows your EPF corpus and gratuity but diverts more cash into retirals, trimming immediate in-hand. A larger special allowance boosts current cash but is fully taxable and builds no savings.

Model both a 40% and a 50% Basic to weigh present cash against future security.
Confirm whether employer PF sits inside CTC or is paid on top before comparing offers.
Remember this estimate uses the New regime — heavy HRA or 80C claimants should check the Old regime too.

Read this way, a CTC breakup turns a negotiating figure into an honest map of your compensation, letting you plan, compare offers and structure your salary with intent rather than guesswork.

Pros

Converts an opaque CTC number into a clear, component-level salary structure.
Shows both annual and monthly figures for every component at a glance.
Separates employer retirals from payable gross so you understand your true in-hand.
Lets you model different Basic and HRA percentages to compare salary structures.
Applies current New-regime slabs so the tax estimate matches most employees’ default.

Cons

Uses a simplified employer-PF assumption of 12% on full Basic rather than the ₹15,000 wage-ceiling variant some firms apply.
Does not model HRA exemption or Old-regime deductions, so the tax figure is an estimate.
Excludes variable pay, bonuses and perks that may sit inside real CTC letters.

Tips

1Ask HR for your salary structure in writing to confirm the actual Basic and HRA percentages.
2Model both a 40% and 50% Basic to see the in-hand versus corpus and gratuity trade-off.
3Check whether employer PF is inside or over-and-above CTC before comparing offers.
4Add professional tax and any recurring cuts into the other-deductions field for accuracy.
5Compare the resulting tax against the Old regime if you claim large HRA or 80C deductions.

Frequently asked questions

Everything you need to know about the CTC Breakup Calculator.

What is the difference between CTC, gross salary and in-hand?

CTC is the total annual cost your employer bears, including their PF and gratuity contributions. Gross salary is CTC minus those employer retirals — the amount that is actually payable to you before deductions. In-hand is gross salary minus income tax, your own PF and any other deductions. Each figure is progressively smaller.

Why is Basic set at 40–50% of CTC?

Basic salary drives PF, gratuity and HRA, so employers balance it carefully. A higher Basic increases retirement savings and gratuity but raises PF deductions, trimming immediate cash. Most Indian salary structures keep Basic between 40% and 50% of CTC as a practical compromise, which is why the default here is 40%.

How is HRA calculated in a CTC breakup?

HRA is usually pegged to Basic salary — commonly 40% of Basic for non-metro cities and 50% for metros. This calculator lets you set HRA as any percentage of Basic up to 50%, so you can match the metro or non-metro convention your employer follows.

What is the 4.81% gratuity figure?

Gratuity under the Payment of Gratuity Act accrues at 15 days of Basic for every completed year of service. Fifteen days out of a 26-working-day month works out to roughly 4.81% of annual Basic, which is the provision employers set aside inside CTC each year.

Does employer PF reduce my take-home pay?

Yes, when it is bundled inside CTC. The employer’s 12% PF contribution is counted as part of your CTC but never reaches your bank account — it goes into your EPF account. So it lowers your in-hand while building your retirement corpus. Some employers state PF over and above CTC, in which case it does not reduce your quoted CTC.

Why does this use the New tax regime?

The New regime is now the default for most salaried employees and uses lower slab rates without requiring investment-based deductions. This calculator applies New-regime slabs plus 4% health-and-education cess on gross salary. If you have heavy 80C, HRA or home-loan claims, compare the Old regime separately.

What is the special allowance?

Special allowance is the balancing figure that absorbs whatever remains of CTC after Basic, HRA, employer PF and gratuity are set. It is fully taxable and carries no statutory exemption, which is why keeping it large versus growing Basic is a deliberate structuring trade-off.

Does a higher Basic mean lower in-hand?

Slightly, in the short term. A higher Basic increases both employer and employee PF plus the gratuity provision, so more of your CTC is diverted into retirals rather than cash. The upside is a larger EPF corpus and bigger gratuity payout, so it is a trade between present cash and future savings.

Is professional tax included here?

No. This calculator focuses on the core CTC components and income tax. Professional tax is a small, state-specific levy capped at ₹2,500 a year and varies by state. You can add it to the other-deductions field if you want to account for it.

Can I use this to compare two job offers?

Yes. Enter each offer’s CTC with its stated Basic and HRA percentages to see which delivers more monthly in-hand and a stronger retirement structure. Two identical CTCs can produce very different take-home amounts depending on how Basic and allowances are split.

Methodology & sources

How the CTC Breakup Calculator is calculated, and where the underlying rules come from.

How we calculate it

Every result is produced by a single, shared and tested financial-formula library used across the whole site — so the maths is consistent from one calculator to the next. Figures are estimates based on the inputs you enter and standard assumptions (such as regular compounding and constant rates); real-world outcomes vary with taxes, fees and changing rates. All calculations run in your browser — nothing you type is stored or sent to a server.

Sources & references

Editorial policy & disclaimer. FinCalcHub provides free educational tools and estimates — not personalised financial, tax or investment advice. Verify important decisions with a qualified professional. Read our editorial approach, disclaimer and privacy policy.

Reviewed by Dhirendra Bisht, Founder & Lead Engineer, FinCalcHub — last reviewed 27 July 2026.

Related tools you might find useful.

Take-Home Salary Calculator

Convert your CTC into monthly in-hand salary after EPF and taxes.

Salary

Net Income Calculator

Work out your annual net income after tax and other deductions from gross pay.

Salary

HRA Exemption Calculator

Work out how much of your House Rent Allowance is tax-exempt.

Taxes

Gratuity Calculator

Estimate the gratuity payable when you leave a job after years of service.

Salary

Leave Encashment Calculator

Work out the payout for your unused earned leave and how much of it is tax-exempt under Section 10(10AA).

Salary

Salary Hike Calculator

Compare your old and new salary to find your hike percentage and monthly increase.

Salary

Free & unlimited

Explore every calculator

From investments to loans and taxes — find the right tool in seconds.

Browse calculators

CTC Breakup Calculator