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CTC to In-Hand Salary Calculator

CTC (cost to company) is the total amount your employer spends on you in a year. It includes things you never receive as monthly pay, such as the employer's PF contribution and gratuity. That is why the money reaching your bank account is lower than CTC ÷ 12.

Last reviewed:

₹

₹15 lakh

%
%
₹
Monthly in-hand salary (estimate)
₹1,03,582
Monthly basic
₹50,000
Monthly HRA
₹25,000
Monthly special allowance
₹41,596
Monthly gross salary
₹1,16,596
Employee PF (monthly)
− ₹6,000
Income tax (monthly estimate)
− ₹6,814
Employer PF in CTC (yearly)
₹72,000
Gratuity in CTC (yearly)
₹28,846
  • Income tax is estimated under the new regime for FY 2026-27. Variable pay, insurance and other benefits in your CTC are not separated here.

This calculator splits an annual CTC into basic, HRA and special allowance, removes the employer contributions, and then deducts your PF, professional tax and an estimate of income tax to show your monthly take-home pay.

How to use this calculator

  1. Enter your annual CTC.
  2. Enter basic salary as a percentage of CTC and HRA as a percentage of basic. Check your offer letter; 40–50% is common for basic.
  3. Choose how PF is calculated and whether gratuity is inside your CTC.
  4. Enter professional tax per month and read your estimated monthly in-hand salary.

Formula and variables

Gross salary = CTC − Employer PF − Gratuity Special allowance = Gross − Basic − HRA In-hand = Gross − Employee PF − Professional tax − Income tax

  • Basic - CTC × basic %.
  • Employer PF / Employee PF - 12% of the PF wage each, where the PF wage is basic or the ₹15,000 ceiling.
  • Gratuity - basic × 15 ÷ 26 ÷ 12 a year, if it is counted in CTC.

Income tax is estimated for a resident individual under the new regime, using the ₹75,000 standard deduction.

Worked example

Anita's offer has a CTC of ₹15,00,000, with a basic of 40%, HRA at 50% of basic, PF on full basic and gratuity included.

Inputs and results for the worked example
Annual CTC₹15,00,000
Basic (40%) and HRA (50% of basic)₹6,00,000 and ₹3,00,000
Employer PF and gratuity₹72,000 and ₹28,846
Gross salary₹13,99,154 a year (₹1,16,596 a month)
Income tax (estimate)₹81,768 a year
Monthly in-hand salary₹1,03,582
  1. Gross = 15,00,000 − 72,000 − 28,846 = ₹13,99,154. Special allowance = 13,99,154 − 6,00,000 − 3,00,000 = ₹4,99,154.
  2. Employee PF = 12% of ₹6,00,000 = ₹72,000. Professional tax = ₹2,400 a year. New-regime tax on ₹13,24,154 (after the ₹75,000 standard deduction) with cess is ₹81,768.
  3. Yearly in-hand = 13,99,154 − 72,000 − 2,400 − 81,768 = ₹12,42,986, or about ₹1,03,582 a month.

What changes the result

  • Basic %. A higher basic raises PF and gratuity, which lowers your in-hand pay now but raises long-term savings.
  • PF base. If PF is limited to the ₹15,000 wage ceiling, less is deducted, and more is paid to you.
  • Variable pay and benefits. Bonuses, insurance and other benefits can be part of CTC but are paid differently. This tool assumes everything left after PF and gratuity is monthly fixed pay.
  • Tax regime and declarations. Your employer's TDS depends on the regime you choose and investment proofs you submit.

Benefits and practical uses

  • Compare job offers by take-home pay rather than headline CTC.
  • Understand each component of your salary structure.
  • Plan a budget and rent before accepting an offer.
  • Ask HR sharper questions about structure.

Assumptions and limitations

  • Resident individual, new tax regime for FY 2026-27, standard deduction only.
  • CTC consists of gross salary, employer PF and optionally gratuity. Insurance, bonus, and perks should be removed from CTC first.
  • Employer contribution to NPS and other tax-saving structures are not modelled.
  • The final figure comes from your employer's payroll.

Frequently asked questions

Why is my in-hand salary much lower than CTC ÷ 12?

Because CTC includes employer PF, gratuity and possibly bonus or insurance that are not paid monthly, and you also pay PF, tax and professional tax.

How do I find my basic salary percentage?

It is in your offer letter or salary structure. Many companies use 40–50% of CTC.

Is employer PF part of my salary?

It is part of CTC and is deposited to your PF account, but it is not paid to you monthly.

Does the tax estimate match my payslip?

It is an estimate under the new regime. Your payslip depends on your chosen regime, declarations and any other income.

What if my CTC includes a variable component?

Remove the expected variable pay from the CTC before entering it, because it is paid separately.

References

Page last reviewed on . This calculator gives estimates for planning only; it is not financial advice and not an offer from any lender.