About the Offer Letter Comparison Calculator
What is the Offer Letter Comparison Calculator?
The structure of an offer letter matters as much as the total. This calculator compares two offers' basic pay share and variable pay, and shows the guaranteed monthly in-hand and the retirement benefits each gives.
It flags common warning signs: variable pay above 20% of CTC and basic pay below 40%.
How to use the Offer Letter Comparison Calculator
- Offer A – CTC (₹) (sample: 15,00,000)
- Offer A – Basic (% of fixed) (sample: 50)
- Offer A – Variable (₹) (sample: 1,50,000)
- Offer B – CTC (₹) (sample: 15,50,000)
- Offer B – Basic (% of fixed) (sample: 30)
- Offer B – Variable (₹) (sample: 2,50,000)
- Tax Regime (sample: New regime (default))
- Press Compare Offer Structures (results also refresh as you type). The result card shows the Better Guaranteed Monthly Pay, along with Offer A – monthly in-hand (fixed), Offer B – monthly in-hand (fixed), Offer A – PF + gratuity per year and Offer B – PF + gratuity per year.
Formula used
Guaranteed in-hand = Fixed gross − Employee PF − Professional tax − Tax on fixed pay
- Retirement benefits = employee + employer PF + gratuity provision
Tax follows FY 2025-26 rules: under the new regime, taxable income up to ₹12 lakh (₹12.75 lakh of salary) pays no tax.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Offer A – CTC (₹) | 15,00,000 |
| Offer A – Basic (% of fixed) | 50 |
| Offer A – Variable (₹) | 1,50,000 |
| Offer B – CTC (₹) | 15,50,000 |
| Offer B – Basic (% of fixed) | 30 |
| Offer B – Variable (₹) | 2,50,000 |
| Tax Regime | New regime (default) |
| Result | Value |
|---|---|
| Better Guaranteed Monthly Pay | Offer B |
| Offer A – monthly in-hand (fixed) | ₹96,086 |
| Offer B – monthly in-hand (fixed) | ₹98,762 |
| Offer A – PF + gratuity per year | ₹1,94,468 |
| Offer B – PF + gratuity per year | ₹1,12,359 |
| Offer A – watch-outs | None |
| Offer B – watch-outs | Low basic – smaller PF and gratuity |
Tips for using the Offer Letter Comparison Calculator
- Ask for the full salary annexure before accepting an offer.
- Check whether variable pay is guaranteed in the first year.