Why is my payout below target with a good rating?

Because the company factor multiplies yours. At a company factor of 0.8, a personal 1.2 gives 0.96 of target. The two do not average.

Should I count variable pay when comparing offers?

At its expected payout, not its target. A CTC with a thirty percent variable share is a materially different number from one with five.

Salary & HRpayrollIndia only

Variable Pay & Performance Bonus Calculator

What a variable component actually pays after both multipliers. The two factors multiply rather than average, so a company at 80 and an individual at 120 pays 96 percent, not 100.

Also called: bonus payout calculator, ctc variable component.

Variable payout

₹3,96,000

₹3,96,000 against a target of ₹4,00,000, a payout of 99% of target. Total earnings come to ₹19,96,000, which is 99.8% of the stated CTC.

Target variable

₹4,00,000

Stated CTC

₹20,00,000

Actually earned

₹19,96,000

Payout against target

99%

Share of CTC realised

99.8%

Gap against the stated CTC

₹4,000

How this is calculated

Method and background

This is what the calculation gives for the numbers you entered. It is an estimate, not advice, and it knows nothing about your situation beyond those numbers. Rules for India change on a published schedule; the effective date is shown on every rule-based tool.

How this is calculated

The target variable is the stated share of CTC. Two multipliers apply: a company factor set by business performance and an individual factor from your rating. They multiply, which is the part people misread, so a strong individual rating in a weak year still pays below target. Time served prorates the result. The gap between stated CTC and what lands is worth knowing before accepting an offer with a large variable share.

target variable, scaled by both multipliers and prorated for time served

T: Target variable
f: Payout factors

Worked examples

Each of these is asserted on every build. If a change to the engine ever moved one of these answers, the build would fail before the page could print it.

a full year with mixed factors

Fixed component of CTC: ₹16,00,000
Variable share of total CTC: 20%
Company payout factor: 90%
Individual payout factor: 110%
Months worked in the year: 12

Variable payout₹3,96,000

0.9 x 1.1 is 0.99, not 1.00

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both factors at target pay target

Fixed component of CTC: ₹16,00,000
Variable share of total CTC: 20%
Company payout factor: 100%
Individual payout factor: 100%
Months worked in the year: 12

Variable payout₹4,00,000

boundary

Open this example

Method and limits

What it assumes

Both factors apply multiplicatively, which is the common structure.

What it deliberately does not model

Some schemes cap the product, or gate the individual factor on the company factor clearing a threshold.
Retention bonuses and stock are not modelled here.

Formula version 1.0.0 · definition 1.0.0 · India · Report a problem with this calculator

Frequently asked questions

Why is my payout below target with a good rating?: Because the company factor multiplies yours. At a company factor of 0.8, a personal 1.2 gives 0.96 of target. The two do not average.
Should I count variable pay when comparing offers?: At its expected payout, not its target. A CTC with a thirty percent variable share is a materially different number from one with five.