Two offers with different CTCs can pay almost the same each month, and sometimes the smaller CTC pays more. Variable pay, joining bonuses and the share of basic pay all change what you actually take home.
This calculator turns both offers into fixed monthly in-hand pay, so you compare what you can rely on, then shows variable and one-time money separately.
What makes two CTCs different
- Variable pay is part of CTC but paid later, and often only partly. A ₹12 lakh CTC with 20% variable has only ₹9.6 lakh of fixed pay.
- Joining bonus is one-time. It inflates the first-year CTC but disappears from year two, and usually has to be repaid if you leave within 12 months.
- Basic pay share sets your PF and gratuity. A higher basic means more retirement savings and, in the old regime, a bigger HRA exemption, but slightly lower monthly cash if PF isn't capped.
- Benefits like health insurance for parents, meal cards, a phone or internet allowance and remote-work stipends are real money too.
How the comparison is calculated
For each offer, the calculator works out in-hand pay the same way the CTC to in-hand calculator does, with capped PF and ₹2,400 professional tax:
Fixed pay = CTC − variable payTaxable income includes fixed pay, variable pay and the joining bonusFixed monthly in-hand = (fixed gross − PF − professional tax − tax on fixed pay) ÷ 12Worked example
Example: Offer A: ₹10 lakh, no variable. Offer B: ₹11.5 lakh with 15% variable and a ₹50,000 joining bonus
Offer A: fixed monthly in-hand of about ₹79,500.
Offer B: fixed monthly in-hand of about ₹77,700, plus around ₹2.2 lakh of variable pay and bonus after tax in year one, if paid in full.
Offer B's CTC is 15% higher, yet it pays less every month. It only comes out ahead if most of the variable pay is actually paid.
Questions to ask before you accept
- What percentage of variable pay did people at my level actually receive last year?
- Is the joining bonus paid in the first month, and what's the clawback period?
- Is PF on full basic or capped at ₹15,000?
- When is the next appraisal cycle, and am I eligible for it?
- What's the notice period, and will you buy out my current notice? Use the notice period buyout calculator to price it.
- Are there ESOPs or RSUs, and on what vesting schedule?
Money isn't everything: commute, remote-work policy, team, learning and job security can be worth more than a few thousand rupees a month.
How to use this calculator
- Enter CTC, variable pay, basic pay and any joining bonus for each offer.
- Choose your tax regime.
- Compare fixed monthly in-hand first.
FAQs
Should I compare CTC or in-hand salary?
In-hand, especially fixed monthly in-hand. Variable pay, joining bonuses and employer PF all raise CTC without raising your monthly pay.
Can a joining bonus be taken back?
Often yes, if you leave within a set period. Check the clawback clause in the offer letter.
Sources
- Business Today: tax slabs for FY 2026-27 after Budget 2026
- Income Tax Department: tax rates and surcharge
- ClearTax: Income-tax Rules 2026 and HRA cities
- ClearTax: Section 44ADA presumptive tax
- ThePrint (PTI): EPF rate of 8.25% for 2025-26 ratified
Results are estimates for resident individuals under 60 and aren't tax, legal or financial advice. For your own return, check with a chartered accountant. Spotted a mistake? Tell us.