CTC to In-Hand Salary Calculator (India)

Enter your annual CTC and see your monthly take-home after PF, professional tax and income tax. Compare the new and old tax regimes, or work backwards from the in-hand salary you want to the CTC you should ask for.

Salary breakup: monthly and yearly

How to use this calculator

1. Enter your annual CTC from your offer letter. CTC means cost to company, so it includes money you never receive in hand, such as employer PF and gratuity.
2. Match the structure to your payslip. Set basic as a % of CTC, HRA as a % of basic, and tell the calculator whether PF is 12% of basic or capped at ₹1,800 a month. Add variable pay, employer NPS or insurance if they are part of your CTC.
3. Choose a tax regime. The summary always shows both regimes and which one leaves more money with you.
4. Use the old regime inputs (rent, 80C, 80D and others) only if you want to test the old regime. The new regime ignores them.
5. Going the other way? Open the “In-hand → CTC” tab, enter the monthly take-home you want, and the calculator finds the CTC you need, which is useful in salary negotiations.

Example: what different CTCs mean in hand

These figures use the new tax regime with basic at 40% of CTC, HRA at 50% of basic, PF at 12% of basic, gratuity included in CTC and professional tax of ₹2,500 a year. Your own structure will change the numbers.

Notice that a ₹12 lakh CTC shows no income tax. Taxable income after the standard deduction stays below ₹12 lakh, so the Section 87A rebate wipes out the tax. Working backwards, an in-hand salary of ₹1,00,000 a month needs a CTC of about ₹13.59 lakh with the same structure.

CTC components explained

Basic salary

The fixed core of your pay, usually 40 to 50% of CTC. PF, gratuity and HRA are calculated from it. Under the new labour codes, wages for PF and gratuity are generally expected to be at least 50% of total remuneration, so many employers have been restructuring salaries. Ask your HR how your company applies this.

HRA and special allowance

HRA is meant to cover rent. Special allowance is whatever is left after all other components, and it is fully taxable. This calculator treats the special allowance as the balancing figure so the parts always add up to your CTC.

Employer PF, employee PF and gratuity

PF is normally 12% of basic from the employee and 12% from the employer. Some companies cap it at 12% of ₹15,000, which is ₹1,800 a month. Employer PF is part of CTC but never reaches your bank account. Gratuity is provided at about 4.81% of basic and is paid only when you leave after at least five years of service, with some exceptions. It is also part of CTC but not part of monthly pay.

Variable pay

Variable pay or bonus is paid on performance, often once a year. The calculator averages it over 12 months, so your actual monthly credit will be lower than shown, with a larger payout when the variable is released.

Professional tax

Some states levy a professional tax of up to ₹2,500 a year, usually deducted monthly. The default here is ₹2,500. Change it to match your state, or set it to zero if your state does not charge it.

New regime versus old regime

For FY 2026-27 the new regime slabs are: nil up to ₹4 lakh, 5% from ₹4 to 8 lakh, 10% from ₹8 to 12 lakh, 15% from ₹12 to 16 lakh, 20% from ₹16 to 20 lakh, 25% from ₹20 to 24 lakh, and 30% above ₹24 lakh. Salaried taxpayers get a ₹75,000 standard deduction, and the Section 87A rebate of up to ₹60,000 makes taxable income up to ₹12 lakh tax-free, which means a salary of about ₹12.75 lakh. The old regime has a ₹50,000 standard deduction, a lower rebate for income up to ₹5 lakh, and slabs of 5% on ₹2.5 to 5 lakh, 20% on ₹5 to 10 lakh and 30% above that. Both regimes add 4% health and education cess.

The old regime wins only when your deductions are large. Take an ₹18 lakh CTC with ₹3.6 lakh annual rent in a metro and ₹25,000 of health insurance. The new regime gives about ₹1,22,080 a month and the old regime about ₹1,16,852, a difference of roughly ₹62,700 a year in favour of the new regime. Try your own deductions above to see where the break-even lies. Employer NPS contributions up to 14% of basic are allowed in the new regime and 10% in the old regime.

Tips to increase your take-home

• Ask whether your employer offers NPS (employer contribution), food coupons or reimbursements that can reduce taxable salary under your chosen regime.
• Choose the regime that actually suits you. Many employers ask you to declare it at the start of the year, and you can still switch when you file your return.
• Compare offers on in-hand salary, not CTC. Two offers with the same CTC can differ by thousands a month because of variable pay, PF structure and benefits.
• Check how much of your CTC is variable and how likely it is to be paid in full.

Limitations

This is an estimate for a salaried resident individual below 60 years of age. It assumes tax is calculated on a full-year basis and ignores other income, joining or leaving mid-year, arrears, perquisite tax on very high employer PF contributions, LTA, and marginal relief on surcharge for incomes above ₹50 lakh. Your payslip and Form 16 are the final authority.

Frequently asked questions

What is the difference between CTC and in-hand salary?

CTC is the total yearly cost of employing you. In-hand salary is what reaches your bank account after employer-paid items (employer PF, gratuity, insurance) and your own deductions (employee PF, professional tax and income tax) are removed.

Why is my in-hand salary lower than expected?

Usual reasons are variable pay that is not paid monthly, employer PF and gratuity that sit inside the CTC, and tax deducted at source. Compare your payslip with the breakup table above.

Which regime does the calculator use by default?

The new regime, which is the default regime for salaried taxpayers. You can switch to the old regime with the selector, and the summary always shows both side by side.

Is PF always 12% of basic?

Not always. Many employers calculate PF on a wage ceiling of ₹15,000, which gives ₹1,800 a month. Pick the option that matches your payslip.

How do I calculate the CTC I should ask for?

Use the “In-hand → CTC” tab. Enter the monthly take-home you want and keep the same salary structure as your current job, so the comparison is fair.

Is this calculator accurate for my exact payslip?

It is a close estimate, not an exact match. Companies structure pay differently, so small differences are normal.

Last updated: 12 November 2026. This calculator is for education and estimation only and is not tax, legal or financial advice. Tax rules change with each Budget; verify current rules on the Income Tax Department website or with a qualified tax professional before making decisions.