Calculate gross salary, net take-home pay, cost to company (CTC), cost per hire & HR ROI instantly. All-in-one salary & HR calculator | Calculator4U
All-in-one HR calculator for payroll, CTC, recruitment metrics, employee turnover, productivity and human capital ROI. Free and instant.
A salary calculator computes your gross pay, net take-home salary, and cost to company (CTC) instantly using standard payroll formulas used by HR professionals and financial planners across India. A CTC of ₹10 lakh per annum typically results in a monthly in-hand salary of ₹65,000 to ₹72,000 after PF, TDS, and professional tax deductions. Use Calculator4U to calculate your exact figures instantly.
Most employees never fully understand the gap between what their employer pays and what they actually receive. A ₹12 lakh CTC package may result in only ₹8 to ₹9 lakh in actual annual take-home after all statutory deductions. Understanding this gap is essential for salary negotiations, budgeting, and financial planning.
In India, Cost to Company or CTC is the total annual expenditure an employer incurs for one employee. CTC includes basic salary, House Rent Allowance (HRA), Special Allowance, Leave Travel Allowance (LTA), medical allowance, employer's Provident Fund contribution (12% of basic), gratuity provision, and any other benefits. The formula is: CTC = Gross Salary + Employer PF Contribution + Gratuity + Other Benefits.
For a CTC of ₹10 lakh per annum, the typical in-hand salary calculation works as follows. Basic salary is usually 40% to 50% of CTC, approximately ₹4 to ₹5 lakh annually. HRA is typically 40% to 50% of basic. Employee PF deduction is 12% of basic — approximately ₹4,800 to ₹6,000 per month. TDS or Tax Deducted at Source depends on your total taxable income and applicable slab under the new or old tax regime. Professional tax varies by state from ₹200 to ₹2,500 per year. After all these deductions, a ₹10 lakh CTC typically results in a monthly in-hand salary of ₹65,000 to ₹72,000.
From Financial Year 2024-25 onwards, the new tax regime is the default in India. Under the new regime for FY 2026-27, income up to ₹4 lakh is tax-free, ₹4 to ₹8 lakh is taxed at 5%, ₹8 to ₹12 lakh at 10%, ₹12 to ₹16 lakh at 15%, ₹16 to ₹20 lakh at 20%, ₹20 to ₹24 lakh at 25%, and above ₹24 lakh at 30%. Additionally, a rebate under Section 87A of up to ₹60,000 makes income up to ₹12 lakh effectively tax-free under the new regime. With the ₹75,000 standard deduction factored in, salaried individuals pay zero tax up to an income of ₹12.75 lakh.
The old regime allows deductions under Section 80C (up to ₹1.5 lakh), HRA exemption, and home loan interest deductions — making it beneficial for those with significant investments and housing expenses. Employees should compare both regimes carefully, as the optimal choice depends on their specific deduction profile.
Cost per hire is one of the most critical HR metrics for understanding true recruitment expenditure. The average cost per hire varies significantly by role — entry-level positions average fewer expenses while senior executive roles can be quite high when specialized executive search fees are included. Cost per hire includes job advertising, recruiter time (calculated at hourly rate), interview time for hiring managers, background checks, assessment tools, onboarding costs, and any agency or search firm fees. Organizations that track cost per hire rigorously reduce recruitment costs by an average of 15% annually compared to those that do not.
Employee turnover is consistently underestimated by management. Research shows the true cost of replacing an employee is 50% to 200% of their annual salary, depending on role complexity and seniority. Replacing an employee results in costs from lost productivity, recruitment, onboarding, and training. Reducing turnover by just 5 percentage points saves most mid-sized companies significant capital annually.
Human Capital ROI measures the financial return generated per rupee invested in employees. The formula is: Human Capital ROI = (Revenue minus Operating Expenses minus Total Compensation Costs) divided by Total Compensation Costs. A ratio above 1.0 means employees generate more value than they cost — the baseline for any sustainable business. Consistently tracking this metric helps organizations make informed decisions about workforce investments, compensation adjustments, and hiring plans.
Absenteeism costs employers significant amounts each year in direct costs including sick pay and lost productivity. The industry benchmark for healthy absenteeism is under 3% of scheduled work days. Tracking and addressing absenteeism through workplace wellness programs, flexible scheduling, and employee engagement initiatives typically delivers a 3 to 6 times return on investment.
For salary calculations: India users should enter their CTC and basic salary percentage to see in-hand salary under both new and old tax regimes. For HR metrics: enter your actual recruitment costs broken down by category for the most accurate cost per hire calculation. Use the turnover cost calculator quarterly to track the financial impact of retention efforts. Compare your Human Capital ROI against the industry benchmarks to identify whether your workforce investment is generating competitive returns.
Whether you are an employee understanding your paycheck, an HR professional tracking workforce costs, or a business owner making compensation decisions — this calculator gives you the complete financial picture in seconds.
Sources & Methodology: Payroll calculations use standard Indian HR formulas. Budget allocation recommendations align with guidance from certified HR professional best practices. Category percentages represent industry-standard guidelines — individual circumstances vary based on location, company size, and industry.
Approximate monthly in-hand salary under New Tax Regime FY 2025-26 (after EPF, professional tax, zero TDS up to ₹12.75L): ₹5 LPA CTC → approximately ₹38,000–₹40,000/month. ₹8 LPA CTC → approximately ₹60,000–₹63,000/month. ₹10 LPA CTC → approximately ₹75,000–₹78,000/month. ₹12 LPA CTC → approximately ₹90,000–₹93,000/month (zero tax under Section 87A). ₹15 LPA CTC → approximately ₹1,08,000–₹1,12,000/month (tax applies on income above ₹12.75L). Actual in-hand varies based on salary structure (HRA component, special allowances), state professional tax, and EPF cap
Yes, under the New Tax Regime for FY 2025-26 (AY 2026-27), individuals earning up to ₹12 lakh have zero income tax liability due to the enhanced Section 87A rebate of ₹60,000. For salaried employees with the ₹75,000 standard deduction, the effective tax-free limit is ₹12.75 lakh. The tax slabs under the New Regime are: ₹0–₹4L = 0%, ₹4L–₹8L = 5%, ₹8L–₹12L = 10%, ₹12L–₹16L = 15%, ₹16L–₹20L = 20%, ₹20L–₹24L = 25%, above ₹24L = 30%. Note: the rebate applies to total tax liability — if income slightly exceeds ₹12L, marginal relief ensures you do not pay more tax than the excess income above ₹12L.
EPF contribution is calculated on Basic Salary + Dearness Allowance (DA), capped at ₹15,000/month. Employee contribution = 12% of (Basic + DA). Employer contribution = 12% of (Basic + DA), split as: 3.67% to EPF account and 8.33% to Employee Pension Scheme (EPS). Example: Basic ₹14,000. Employee EPF = 12% × ₹14,000 = ₹1,680/month. Employer EPF = 3.67% × ₹14,000 = ₹514/month. Employer EPS = 8.33% × ₹14,000 = ₹1,166/month. Total monthly EPF deposited = ₹1,680 + ₹514 = ₹2,194. EPF interest rate FY 2025-26 = 8.25% per annum.
CTC (Cost to Company) is the total annual expense a company incurs for an employee, expressed in India as LPA (Lakhs Per Annum). CTC is not the same as gross salary or take-home pay. Gross Salary = CTC − Employer EPF − Gratuity. Net Salary (Take-Home) = Gross Salary − Employee EPF − Professional Tax − TDS. Example: ₹8 LPA CTC with ₹50,000 bonus. Gross Salary = ₹8,00,000 − ₹50,000 = ₹7,50,000. After deducting employee EPF ₹21,600, professional tax ₹2,400, and TDS, monthly take-home is approximately ₹55,000–₹58,000. The gap between CTC and in-hand is typically 15–25% due to employer PF, gratuity, insurance, and tax deductions.
The New Tax Regime is better if your total Old Regime deductions are less than approximately ₹3.75 lakh per year. The Old Tax Regime is better if you have significant deductions: 80C investments up to ₹1.5L (PPF, ELSS, LIC, EPF), HRA exemption (especially in metros), home loan interest up to ₹2L under Section 24, NPS employer contribution under Section 80CCD(2), and mediclaim premium. The New Regime is the default from FY 2024-25 onwards — salaried employees must specifically opt for the Old Regime via their employer before the start of the financial year. Once chosen for TDS purposes, you can still switch at ITR filing if you are not running a business.
Gratuity = (Basic Salary + Dearness Allowance) × 15/26 × Number of years of service. The fraction 15/26 represents 15 working days of the last drawn basic salary, with 26 as the standard monthly working days. Gratuity is payable after 5 years of continuous service with the same employer. Example: Basic + DA ₹40,000/month, 6 years of service. Gratuity = ₹40,000 × 15/26 × 6 = ₹1,38,461. In CTC, gratuity is typically accrued at 4.81% of basic salary per year. Tax exemption: up to ₹20 lakh for private sector employees under the Payment of Gratuity Act. Employees who leave before completing 5 years receive no gratuity despite it being included in their CTC.
An HR calculator is an online tool that helps businesses compute payroll, salary breakdown, cost to company, recruitment costs, employee productivity, turnover rate and workforce ROI using standard HR formulas. It is used by HR professionals, payroll teams, business owners, and MBA students to simplify workforce cost analysis without spreadsheets.
Cost to Company is calculated as Gross Salary plus employer contributions such as provident fund, gratuity, insurance and other benefits. CTC = Gross Salary + Employer PF Contribution + Gratuity + Insurance + Other Benefits. In India, CTC includes all direct and indirect benefits the employer pays on behalf of the employee over one year, and is expressed as LPA (Lakhs Per Annum).
Gross salary is the total earnings before deductions — it includes basic pay, HRA, special allowances, bonus, and incentives. Net salary (take-home pay) is what remains after deductions like PF, TDS, ESI, professional tax, and health insurance are subtracted from gross salary. Net Salary = Gross Salary − Employee PF − Professional Tax − TDS − ESI − Other Deductions.
Employee turnover rate is calculated by dividing the number of employees who left by the average number of employees and multiplying by 100. Turnover Rate = (Number of Exits ÷ Average Number of Employees) × 100. Example: 10 employees left in a year from a company with an average workforce of 100. Turnover Rate = (10 ÷ 100) × 100 = 10%. A turnover rate above 20% is generally considered high and signals retention problems.
Cost per hire measures total recruitment expenses per employee hired. Cost per Hire = Total Recruitment Cost ÷ Number of Hires. Total recruitment costs include job posting fees, recruiter salaries, background checks, interview expenses, onboarding costs, and referral bonuses. Example: ₹5,00,000 total recruitment spend to hire 10 employees. Cost per Hire = ₹5,00,000 ÷ 10 = ₹50,000 per hire. The SHRM benchmark for average cost per hire across industries is approximately $4,700 USD (approximately ₹3.9 lakh).
Absenteeism rate is calculated by dividing absent days by total working days and multiplying by 100. Absenteeism Rate = (Absent Days ÷ Total Working Days) × 100. Example: an employee was absent 6 days in a 250-working-day year. Absenteeism Rate = (6 ÷ 250) × 100 = 2.4%. Industry benchmark: absenteeism above 3% is considered high and typically signals engagement, health, or management issues.
Revenue per employee is calculated by dividing total company revenue by the total number of employees. Revenue per Employee = Total Revenue ÷ Number of Employees. Example: a company earns ₹10 crore revenue with 50 employees. Revenue per Employee = ₹10,00,00,000 ÷ 50 = ₹20,00,000 per employee. It is a key workforce productivity and business efficiency indicator. Higher revenue per employee suggests better productivity, leaner staffing, or higher-value work. Technology companies typically have the highest revenue per employee ratios.