Offer Letter CTC Breakup Calculator - Calculate Gross, Net & Deductions Instantly

A CTC (Cost to Company) breakup is a detailed itemisation of all components that make up an employee's total annual compensation package. It includes fixed salary components (basic, HRA, allowances), variable pay (bonus, incentives), employer statutory contributions (provident fund, gratuity), and benefits (health insurance, life cover). The CTC breakup helps both employers and employees understand the full value of a compensation package and calculate the actual take-home pay.

CTC (Cost to Company) is the total annual cost the employer incurs for an employee - it includes gross salary plus all employer-side contributions and benefits. Gross salary is the total of all earnings before any employee-side deductions are applied. Net salary (take-home) is what the employee actually receives after all deductions are subtracted from gross salary. CTC is always the highest figure, followed by gross salary, and then net salary.

Use the formula: Net Salary = Gross Salary - Total Deductions. Start with your annual CTC, subtract employer contributions (PF, gratuity, insurance) to get gross salary, then subtract employee-side deductions (employee PF, professional tax, income tax, insurance premiums) to arrive at your net annual take-home. Divide by 12 for the monthly figure.

A standard CTC breakup includes: Fixed Pay (basic salary, HRA, transport allowance, medical allowance, special allowance, LTA); Variable Pay (performance bonus, joining bonus); Employer Contributions (employer PF/pension, gratuity provision, employer health insurance, group life insurance); and Employee Deductions (employee PF, professional tax, income tax/TDS, employee health insurance).

Yes. The NextinHR Offer Letter CTC Breakup Calculator is completely free. There is no registration, no credit card requirement, and no hidden charges. You can calculate CTC breakups for multiple salary structures without any limit.

Yes. The calculator defaults to USD but supports all major global currencies including INR, EUR, GBP, AED, SGD, AUD, CAD, MYR, ZAR, BRL, JPY, and more. Select your preferred currency from the dropdown before entering salary values.

The employer's PF contribution is an additional cost borne by the company on top of gross salary - it is included in the CTC but not in gross salary. The employee's PF contribution is deducted from the employee's gross salary, reducing their net take-home pay. Both are typically a percentage of basic salary.

Enter the total CTC or individual salary components in the Fixed Pay tab. Add any variable pay in the Variable Pay tab. Enter all employer contributions and employee deductions in their respective tabs. Click Calculate to see the full breakup. Download the PDF to attach to your offer letter.

The most common deductions include employee provident fund (EPF) or pension contributions, professional tax, income tax withholding (TDS or PAYE), health insurance premium (employee share), and other voluntary deductions such as voluntary pension top-ups or loan repayments.

Yes. The calculator includes an Add Component button to add custom fixed pay line items and an Add Deduction button to include additional deductions. Each dynamic row includes a Remove button to delete entries. The Reset button clears all fields and returns the calculator to its initial state.