Salary Calculator CTC to In-hand
Convert your CTC to monthly in-hand salary after EPF, gratuity, professional tax and FY 2025-26 income tax under the regime you choose.
Tool guide
What this tool does
The Salary Calculator breaks an Indian cost-to-company figure into basic pay, HRA, special allowance, employer PF and gratuity, then deducts your EPF, professional tax and income tax. It shows monthly in-hand pay, annual take-home including variable pay and a component-wise table.
An offer letter quotes cost to company (CTC), which is everything your employer spends on you, not what reaches your bank account. CTC includes the employer’s 12% provident fund contribution and usually a gratuity provision of 4.81% of basic, neither of which is paid monthly. From the remaining gross salary your own 12% EPF, professional tax and income tax are deducted, so take-home pay is often 70 to 85% of CTC.
This calculator builds a typical structure: basic as a percentage of fixed CTC, HRA as a percentage of basic and the rest as special allowance. EPF can be 12% of full basic or limited to the ₹15,000 statutory wage ceiling (₹1,800 a month). Tax uses FY 2025-26 rules for the regime you pick, and in the old regime it includes HRA exemption, professional tax and 80C/80D deductions. Variable pay is taxed at the margin so the monthly figure reflects fixed pay only.
How to use Salary Calculator CTC to In-hand
- Enter your annual CTC and any variable pay or bonus included in it.
- Set the basic salary percentage and HRA as a percentage of basic from your offer letter.
- Choose how EPF is calculated: full basic, capped at ₹15,000, or no PF.
- Say whether gratuity is included in CTC and enter your state’s professional tax.
- Select the tax regime; for the old regime also enter monthly rent and extra 80C or 80D deductions.
- Read the monthly in-hand salary, annual take-home and tax, and check the breakdown table.
Tips for better results
- Ask HR for the exact salary structure; two offers with the same CTC can differ in take-home by thousands a month.
- Choosing the ₹15,000 PF ceiling raises monthly pay but lowers retirement savings.
- Professional tax is usually ₹200 a month with ₹300 in February in states such as Maharashtra; several states charge none.
- Under the new labour codes, wages including basic are expected to be at least half of total pay, which raises PF and gratuity.
Common use cases
- Comparing two job offers by actual take-home pay.
- Negotiating salary with a clear view of deductions.
- Planning a monthly budget or EMI before joining a new job.
- Checking whether the old or new regime leaves more money in hand.
Common mistakes to avoid
- Dividing CTC by 12 and expecting that amount each month.
- Forgetting that gratuity is paid only after five years of service in most cases.
- Ignoring tax on the variable bonus, which is often deducted in the month it is paid.
Frequently asked questions
Why is in-hand salary lower than CTC?
CTC includes the employer PF contribution and gratuity, which are not paid monthly, and your gross pay is further reduced by employee PF, professional tax and income tax.
How is EPF calculated?
Both you and your employer contribute 12% of basic plus DA. Many employers limit this to the ₹15,000 monthly wage ceiling, which makes the contribution ₹1,800 a month each.
What is the gratuity component?
Employers often set aside 4.81% of basic, which is 15/26 of a month’s basic for each year divided by 12. It is paid when you leave after the qualifying service period.
Does the calculator include tax on my bonus?
Yes. Tax is computed on fixed pay alone and on fixed pay plus variable pay; the difference is treated as tax on the bonus, so the monthly in-hand figure shows fixed pay after its share of tax.
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