Cost to Company Calculator
Calculate the true Cost to Company (CTC) of an employee — the full amount an employer spends on a hire, including base salary, bonus, employer pension/401(k) match, health insurance, other benefits and employer-side payroll taxes. See the annual and monthly CTC, a per-component breakdown, and a donut chart visualising the split. Everything runs locally in your browser.
How to use
- 1
Enter base salary and bonus
Type the annual gross base salary and any target or guaranteed annual bonus. These are the cash components the employee receives on their payslip.
- 2
Set employer pension / 401(k) contribution
Use the slider to set the employer-side retirement contribution as a percentage of base salary. Common values: 3% non-elective, 4–6% match, 8–12% for generous plans.
- 3
Enter benefits values and payroll tax rate
Add annual health-insurance premium paid by the employer, the annualised value of other benefits (car, phone, stipends), and the employer-side payroll tax percentage (varies by country).
- 4
Read the total CTC and breakdown
The result card shows annual CTC, monthly CTC, per-component breakdown and a donut chart. The overhead ratio tells you how much the employer spends on top of gross cash salary.
Common use cases
- Negotiate a salary by understanding the employer's true cost (CTC overhead is typically 25–45%).
- Compare the cost of an employee vs an equivalent contractor (contractors don't carry benefits overhead).
- Budget headcount for a team plan or funding round — multiply CTC by headcount.
- Decide between a higher-salary/lower-benefits offer and a lower-salary/higher-benefits offer.
- Explain to international hires why their US CTC looks higher than their take-home pay.
Limitations
- Payroll tax percentages vary widely by country, state and salary band. The slider is a rough guide: US ≈ 7.65% FICA + 6% FUTA/SUTA, UK employer NI ≈ 13.8%, Germany ≈ 20%, India PF + gratuity + ESI ≈ 12–20%. Look up the exact rate for your jurisdiction.
- The calculator does not model equity-based compensation (RSUs, options) as part of CTC. For equity-heavy offers, add the annualised equity value to the bonus field or build a separate total-comp calculation.
- Health insurance value is the employer-paid premium only — not the employee's payroll deduction. In the US, family coverage typically costs the employer $12K–$18K/year.
- Pension / 401(k) match percentages often have a salary cap (e.g. match on first $300K). The calculator applies the percentage to the full base salary. Adjust manually if your plan has a cap.
- Other one-time costs (recruiter fees, signing bonus, equipment, training, office space) are not included. Add them to the “Other benefits” field annualised for a fuller picture.