Salary
How to calculate annual salary
Multiply a stable monthly salary figure by 12, then state whether it is gross pay, take-home pay or CTC.
Choose the right monthly figure
A monthly gross figure and a monthly take-home figure answer different questions. Do not multiply an in-hand estimate and label the result as CTC.
Include variable pay separately
If a bonus or incentive is not guaranteed, show it separately from fixed annual salary. This avoids presenting a best-case number as assured cash compensation.
Check the salary structure
Employer PF, gratuity and insurance may be part of CTC even though they are not paid as monthly cash. Review the offer's breakup before comparing annual packages.
This guide is for general education. Rules, lender terms, bank terms and individual circumstances can change the result.
Use the relevant calculator