Karthi was born as Karthik Sivakumar on 25 May 1977 in Madras, Tamil Nadu, India to actor Sivakumar and his wife Lakshmi. He completed his elementary and secondary school education at Padma Seshadri Bala Bhavan and St. Bede's Anglo Indian Higher Secondary School, Chennai. He gained a bachelor's degree in mechanical engineering from Crescent Engineering College, Chennai. After graduation, he worked as an Engineering consultant in Chennai and considered higher studies abroad. "I was earning about ₹ 5000 per month and found the work monotonous. That was when I thought, I should do something more", he recalled in an interview. Karthi got a scholarship for his higher studies in the United States, and enrolled at Binghamton University, New York, where he earned his Master of Science in industrial engineering. While pursuing his master's degree, he also took elective courses on filmmaking.
During his stay in New York, Karthi worked as a part-time graphic designer. He then decided to pursue a career in filmmaking; he attended two courses in basic filmmaking at State University of New York. He stated: "I always knew I wanted to be in films, but I did not know exactly what I wanted to do.
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