Payroll & attendance (India)
Employee cost per hour calculator
CTC is a yearly number; margins are decided hourly. Convert one to the other, including what utilisation does to the real cost.
- Cost per working hour
- ₹625
- Cost per billable hour
- ₹833
- Monthly cost
- ₹1,00,000
The rate you must exceed to make margin.
Runs entirely in your browser — nothing you type is sent or stored. Indicative arithmetic, not legal, payroll or tax advice.
The formula
- Working hours per year = working days × hours per day
- Cost per working hour = annual CTC ÷ working hours
- Cost per billable hour = cost per working hour ÷ utilisation %
Why cost per billable hour is the number that matters
A ₹12 lakh CTC over 1,920 working hours is ₹625 an hour — but nobody is billable for every working hour. At 75% utilisation the company needs each billable hour to carry ₹833 of salary cost before rent, tools, management and profit. Quote below your fully-loaded cost per billable hour and the project loses money before it starts.
This is the arithmetic behind the common services rule of thumb that bill rates should be 2.5–3× salary cost per hour: the multiple absorbs the non-billable share, overheads and margin.
CTC is not the whole cost
CTC captures salary, employer PF and stated benefits, but the true cost of a delivery seat adds equipment, software licences, office or remote stipends, recruitment amortisation and management time. Firms that measure it usually land 15–30% above CTC. For pricing decisions, apply that loading to the cost-per-billable-hour figure this calculator gives you.
Stop calculating this by hand
Workclave measures the utilisation this calculation depends on — from approved, project-linked sessions — so the cost per billable hour you price with is a fact, not an assumption.
Employee cost per hour (CTC → hourly) — common questions
Should I use gross salary or CTC?
Use CTC — it is closer to what the company actually spends, since it includes employer PF contribution, gratuity accrual and stated benefits. Gross salary understates the cost of the seat.
What utilisation should I assume for pricing?
Use your measured utilisation, not your target. If you do not measure it yet, 70–75% is a defensible starting assumption for delivery roles — and measuring it is the first thing to fix, since every pricing decision depends on it.
How many working days should I use for India?
Start from 365, remove 104 weekend days, 10–14 public holidays (state-dependent) and 15–20 days of leave. That lands most Indian teams at 230–245 working days. This calculator defaults to 240.
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