CTC to In-hand Salary Calculator
Enter your CTC to see what actually reaches your bank account each month — after PF, professional tax and income tax — and which tax regime leaves you with more.
Estimated in-hand salary (new regime)
₹90,200 / month
₹10,82,400 a year
The new regime saves you ₹1,27,109 in tax a year with these numbers.
New regime· Better
₹90,200 /mo
Old regime
₹79,608 /mo
CTC breakup (annual)
An estimate using Union Budget 2025 slabs (FY 2025-26 onwards), for a resident individual under 60. Actual pay depends on your employer’s salary structure, variable pay, reimbursements and the tax declarations you make. Not tax advice.
How CTC becomes your in-hand salary
Your CTC is what the company spends on you in a year, not what reaches your bank account. Here is where the difference goes.
CTC, gross salary and in-hand salary
- CTC (cost to company) is the total annual cost of employing you, including amounts you never receive monthly, such as the employer's PF contribution and, at some companies, gratuity and insurance.
- Gross salary is CTC minus those employer-side costs — basic, HRA, special allowance and other allowances.
- In-hand (take-home) salary is gross salary minus your own PF contribution, professional tax and income tax deducted at source.
The deductions from your salary
- Employee PF: 12% of your basic salary goes to your EPF account. It is your savings, not a cost, but it does leave your monthly pay. Some employers calculate it on a basic of ₹15,000 (₹1,800 a month) instead of your full basic.
- Employer PF: another 12% of basic, paid by the employer but counted inside your CTC.
- Gratuity: about 4.81% of basic, often included in CTC but paid only when you leave after completing five years of service.
- Professional tax: a state tax of up to ₹2,500 a year, charged in states such as Maharashtra, Karnataka, West Bengal, Tamil Nadu and Telangana, and not in states such as Delhi or Uttar Pradesh.
- Income tax (TDS): deducted every month based on the regime you choose and the declarations you give your employer.
New regime or old regime?
The new tax regime has lower rates, a ₹75,000 standard deduction and no tax up to ₹12 lakh of taxable income, but allows almost no other deductions. The old regime has higher rates but lets you claim HRA, 80C investments (including your PF), health insurance, home loan interest and NPS.
As a rule of thumb, the new regime suits people with few deductions, and the old regime can win when your HRA exemption and investments are large. The calculator works out both from your numbers and shows which one leaves you with more.
Why your payslip may differ
Variable pay and performance bonuses are usually part of CTC but paid quarterly or yearly, so they won't appear in monthly pay. Meal cards, reimbursements, insurance premiums, and the exact split between basic and allowances all change the final figure. Use this as an estimate and compare it with the salary breakup in your offer letter.
Using this when you negotiate
Compare offers on in-hand salary and on what the CTC actually includes, not on the headline number. Ask for the salary breakup: a higher fixed component, a lower variable share or a smaller amount tied up in gratuity and insurance can mean more money every month on the same CTC.
In-hand salary: frequently asked questions
How is in-hand salary calculated from CTC?
Start with CTC, subtract the employer's PF contribution and any gratuity included in it to get gross salary. Then subtract your own PF contribution, professional tax and income tax. What remains, divided by 12, is your monthly in-hand salary.
What is the in-hand salary for 12 LPA?
It depends on your salary structure and tax regime. With a 40% basic, PF on full basic and ₹2,400 professional tax under the new regime, this calculator estimates about ₹90,200 a month, with no income tax, since the taxable income stays under ₹12 lakh. Enter your own breakup for a closer figure.
Is there no tax up to ₹12 lakh in the new regime?
Under the new regime, a rebate makes the tax zero when your taxable income is up to ₹12 lakh. Salaried employees also get a ₹75,000 standard deduction first, so a gross salary of up to ₹12.75 lakh ends up with no income tax.
Which is better, the new or the old tax regime?
It depends on your deductions. The new regime usually works out better unless you have a large HRA exemption, full 80C investments and other deductions like home loan interest. The calculator compares both for your numbers.
Does the calculator include variable pay and bonus?
Enter only the fixed part of your CTC for monthly in-hand salary. Variable pay is usually paid quarterly or yearly and is taxed when paid.
Is this calculator accurate?
It follows the published income tax slabs, standard deduction, rebate, surcharge and cess for a resident individual under 60. Your actual pay also depends on your employer's salary structure and the tax declarations you make, so treat it as an estimate, not tax advice.