Salary & CTC

CTC to In-Hand Salary Calculator

Enter your annual CTC and see your real monthly take-home instantly, with basic, HRA, employer PF, employee PF, professional tax and income tax all broken out separately.

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Assumes employer PF at 12% of basic and gratuity provisioning at 4.81% of basic, the two most common CTC add ons, with no other CTC inclusions like insurance premium.

Your Payslip Estimate Live
Basic salary (monthly)...
HRA (est., monthly)...
Gross salary (monthly)...
Employer PF + gratuity...
Employee PF...
Professional tax...
Income tax (TDS)...
Monthly in-hand...
Annual in-hand: ...

How CTC becomes your in-hand salary

Your CTC, or Cost to Company, is the total yearly cost your employer bears for employing you. It is not the amount you actually take home. Employers first split your CTC into a basic salary and allowances like HRA and special allowance, and separately set aside their own contributions to your PF and gratuity, which sit inside your CTC but never touch your bank account. From what is left as your gross salary, your own PF contribution, professional tax and income tax (TDS) get deducted every month, and whatever remains is your in-hand salary.

Gross Salary = CTC − Employer PF − Gratuity Provision
In-Hand Salary = Gross Salary − Employee PF − Professional Tax − Income Tax (TDS)

How CTC to In-Hand Salary Calculator Works

This calculator does the same working your payroll team does, just instantly and on your screen. Here is the step-by-step logic behind it:

  1. Start with your CTC. The number you enter is treated as your full annual cost to company, exactly as written in your offer letter.
  2. Work out basic pay. Your basic pay percentage decides how much of your CTC becomes basic salary. Everything else in the CTC structure, like HRA and employer contributions, is calculated off this basic figure.
  3. Set aside employer contributions. Employer PF (12% of basic) and gratuity provisioning (4.81% of basic) are subtracted from your CTC first, since this money never reaches your account. What is left is your gross salary.
  4. Apply your deductions. Employee PF, professional tax (based on your state) and income tax under your chosen regime are subtracted from the gross salary.
  5. Show your final number. Whatever remains is your monthly in-hand salary, along with the full breakup so you can see exactly where each rupee went.

Example calculation

Say your offer letter shows a CTC of ₹9,00,000 a year, with basic pay set at 40% of CTC and professional tax of ₹200 a month. Basic salary works out to ₹30,000 a month. Employer PF and gratuity together come to roughly ₹4,320 a month, bringing your gross salary down to about ₹71,680 a month. From there, employee PF (₹3,600), professional tax (₹200) and income tax under the new regime get deducted, leaving an in-hand salary that is noticeably lower than ₹9,00,000 divided by 12, which is why the full breakup matters more than the headline CTC figure.

What affects your in-hand number

Two companies offering the identical CTC can hand you very different take-home pay, because the basic pay percentage, the number of tax-exempt allowances like LTA or meal cards, and whether you are on the old or new tax regime all change the final math. A higher basic percentage means more of your CTC goes toward PF, which you only get back later, while a lower basic keeps more cash flowing monthly but reduces your retirement savings.

Old regime vs new regime: which should you pick

If you don't have many tax-saving investments or a home loan, the new regime usually works out better because of its lower slab rates and higher rebate threshold. If you already claim a large 80C investment, HRA exemption and a home loan interest deduction, the old regime can still come out ahead. The safest approach is to try both in this calculator with your real numbers and compare the final in-hand figure directly, rather than guessing based on general advice.

Common mistakes to avoid when reading your CTC

Frequently asked questions

Why is my in-hand salary lower than CTC divided by 12?

CTC includes costs your employer bears on your behalf, like employer PF contribution, gratuity provisioning and insurance, and none of that reaches your bank account. Your in-hand salary also has employee PF, professional tax and income tax subtracted. Together these usually bring in-hand pay to about 65 to 80% of CTC divided by 12.

What percentage of CTC is usually basic salary?

Most Indian companies fix basic pay between 35% and 50% of CTC. A lower basic reduces your PF and gratuity contributions but also lowers HRA exemption, while a higher basic does the opposite. There is no universal rule here.

Does this calculator account for the old and new tax regime?

Yes. Toggle between the new regime (₹75,000 standard deduction, tax-free up to ₹12 lakh taxable income after rebate) and the old regime (₹50,000 standard deduction plus your declared 80C/80D deductions) to compare.

Is the professional tax figure accurate for my state?

Professional tax is a state subject. States like Maharashtra, Karnataka and West Bengal levy it, usually capped near ₹200 to ₹300 a month, while Delhi and Haryana do not. Set the field to match your state, or choose "None."

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This is an estimate for general understanding, using common assumptions (12% employer PF, 4.81% gratuity provisioning). Your actual payslip depends on your employer's specific CTC structure. Please verify with your HR/payroll team.