CTC to In-Hand Salary Calculator
Convert your cost-to-company (CTC) into the salary that actually reaches your bank account each month, with a full salary structure and tax under the regime you choose.
What is the CTC to In-Hand Salary Calculator?
CTC is the total amount an employer spends on you in a year. It includes items you never receive as monthly cash, such as the employer’s PF contribution and gratuity. In-hand (take-home) salary is what remains after those items and your own deductions — employee PF, professional tax and income tax.
How does it work?
The calculator splits CTC into basic, HRA, employer PF, gratuity (4.81% of basic, if part of CTC) and a special allowance that balances the total. It then deducts employee PF (12% of basic, capped at ₹15,000 wages if you choose), professional tax and income tax computed with the selected financial year’s rules.
Formula
Gross salary = CTC − Employer PF − Gratuity
In-hand = Gross − Employee PF − Professional tax − Income tax
Example
A ₹12 lakh CTC with 50% basic, capped PF and gratuity gives a gross salary of ₹11,49,540. Under the new regime for FY 2025-26 the tax is nil (taxable income is below ₹12 lakh after the ₹75,000 standard deduction), so monthly take-home is about ₹93,787.
A ₹12 lakh CTC, line by line
With basic at 50% of CTC, HRA at 40% of basic, PF on the ₹15,000 wage ceiling, gratuity included in CTC and ₹2,400 a year of professional tax:
| Component | Per year | Per month |
|---|
| Basic | ₹6,00,000 | ₹50,000 |
| HRA | ₹2,40,000 | ₹20,000 |
| Special allowance | ₹3,09,540 | ₹25,795 |
| Employer PF | ₹21,600 | ₹1,800 |
| Gratuity (4.81% of basic) | ₹28,860 | ₹2,405 |
| Gross salary | ₹11,49,540 | ₹95,795 |
| Employee PF | −₹21,600 | −₹1,800 |
| Professional tax | −₹2,400 | −₹200 |
| Income tax, new regime | Nil | Nil |
| Take-home | ₹11,25,540 | ₹93,795 |
Settings that change the result
- Basic percentage: a higher basic increases PF (if not capped), gratuity and the HRA limit, and lowers the special allowance.
- PF on the full basic or capped at ₹15,000: on a ₹50,000 basic, full PF takes ₹6,000 a month from each side instead of ₹1,800, cutting take-home by about ₹8,400 a month in this example while building retirement savings.
- Gratuity in CTC: some employers include it, others pay it on top. If it is included, that part never reaches you monthly.
- Tax regime: with the same CTC, the old regime without rent or investments would take about ₹1.4 lakh in tax.
- Variable pay: paid once or twice a year, if at all; the monthly figure excludes it.
Professional tax by state
Professional tax is levied by states and capped at ₹2,500 a year. Karnataka, Maharashtra, West Bengal, Tamil Nadu, Telangana, Andhra Pradesh, Gujarat and several others levy it, with slabs and payment schedules that vary by state; ₹200 a month is common at typical salaries. Delhi, Haryana, Uttar Pradesh and Rajasthan do not. Enter 0 if your state has none.
Using this when changing jobs
Run both offers through the calculator with the structures in the offer letters. Then compare monthly take-home, total employer contributions to PF and gratuity, the variable component, and benefits outside CTC such as health insurance for family members.
A higher CTC can sometimes mean lower take-home, for example when more of it is variable or goes into PF on the full basic.
Frequently asked questions
Why is my in-hand salary so much lower than CTC ÷ 12?
CTC includes the employer’s PF and gratuity, which you do not receive monthly, and your own PF, professional tax and income tax are deducted from gross salary.
Which tax regime should I choose?
The new regime has lower rates and a larger rebate but few deductions. The old regime can be better if you claim large deductions such as HRA, 80C, 80D and home loan interest. Use the Income Tax Calculator to compare both.
How is variable pay handled?
Variable pay is taxed when paid. The headline shows fixed monthly take-home; the hint shows the average including variable pay.
Why does my payslip show slightly different tax?
Employers project your annual income and spread TDS over the remaining months, adjusting for declarations, proofs and mid-year changes. The total for the year should match the calculator if the inputs match.
Is employer NPS part of CTC?
If your employer offers NPS, its contribution is usually part of CTC. Employer NPS contributions are deductible under Section 80CCD(2) in both regimes, within the limit of 14% of basic in the new regime and 10% in the old regime.
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