🧾 Tax & Salary

Salary Calculator (CTC to In-Hand)

Enter your annual CTC and basic-pay share to estimate your monthly in-hand salary — after provident fund, professional tax and income tax under the new regime for FY 2026-27.

Your package
Annual CTC & structure
Your take-home
Estimated monthly in-hand

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CTC vs in-hand salary

Your CTC (Cost to Company) is the total a company spends on you in a year — but it is not what lands in your bank account. In-hand (take-home) salary is CTC minus the parts you never receive as monthly cash: the employer's provident-fund contribution, the gratuity provision, and the deductions taken from your salary — your own PF, professional tax and income tax (TDS).

How this calculator estimates take-home

Starting from your CTC and the share that is basic pay (usually 40–50%), it works through the standard structure:

  • Employer PF — 12% of basic, part of CTC but paid into your PF, not your salary.
  • Gratuity provision — about 4.81% of basic, set aside by the employer.
  • Gross salary = CTC − employer PF − gratuity.
  • Deductions — your own PF (12% of basic), professional tax (≈ ₹2,400/year), and income tax under the new regime after the ₹75,000 standard deduction.
  • In-hand = gross − those deductions.
On a ₹12,00,000 CTC with 50% basic, the new-regime 87A rebate makes income tax zero, so take-home works out to roughly ₹85,000/month. On a ₹25,00,000 CTC it is about ₹1,56,000/month after ₹2.64 lakh of annual tax.
Annual CTCApprox. monthly in-hand (new regime)
₹6,00,000≈ ₹46,000
₹10,00,000≈ ₹73,000
₹12,00,000≈ ₹85,000
₹18,00,000≈ ₹1,18,000
₹25,00,000≈ ₹1,56,000

Why your actual figure may differ

Salary structures vary widely. Some employers cap PF at 12% of ₹15,000 (₹1,800/month) instead of on full basic, which raises take-home; others include variable pay, NPS or reimbursements in CTC. HRA and other exemptions only help under the old regime. To pick the cheaper regime for your salary, use the income tax calculator, and if you rent, check your HRA exemption.

What CTC does not show

Two big long-term benefits are hidden inside CTC: your EPF corpus, which compounds tax-free until retirement, and your gratuity, payable after five years of service. Both feel like "deductions" today but are real savings — don't mistake a higher take-home for a better overall package. For a full breakdown of where every rupee of your CTC goes, read our guide: CTC vs In-Hand Salary: where does your money go?

Frequently Asked Questions

What is the difference between CTC and in-hand salary?
CTC is the company's total annual spend on you, including its PF contribution and gratuity provision. In-hand salary is what reaches your bank account after those employer components and your own deductions (PF, professional tax, income tax) are removed.
How much of my CTC is usually take-home?
For most salaried employees, monthly in-hand is roughly 70–85% of the monthly CTC, depending on your basic-pay share and tax bracket. Lower incomes keep a higher share because the 87A rebate can make tax zero up to ₹12 lakh taxable.
Which tax regime does this calculator use?
It uses the new regime for FY 2026-27 with the ₹75,000 standard deduction and 4% cess. HRA and 80C-style deductions apply only under the old regime — compare both in our income tax calculator.
Why is basic pay important?
PF and gratuity are calculated on basic pay, so a higher basic means more goes into PF and gratuity (long-term savings) and slightly less into monthly cash. Basic is typically 40–50% of CTC.
Is professional tax the same everywhere?
No — professional tax is levied by states and varies, up to about ₹2,500 per year (many states cap it near ₹2,400). Some states and union territories do not charge it at all. This calculator uses ₹2,400/year as a typical figure.
Does in-hand include my PF?
No. Both your PF contribution and the employer's are excluded from in-hand pay — they build your EPF corpus instead. That money is still yours and compounds tax-free, so treat it as forced savings rather than a loss.
Why might my actual salary differ from this estimate?
Structures differ: PF may be capped at ₹1,800/month, CTC may include variable pay or NPS, and allowances vary. This tool gives a close estimate; your payslip is the exact figure.
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