CTC to In-Hand Salary Calculator
Find out how long your corpus will last with a monthly withdrawal. Useful for retirement and regular income planning.
| Basic Salary (Yearly) | ₹0 |
| HRA (Yearly) | ₹0 |
| Bonus / Variable | ₹0 |
| Special Allowance (Bal.) | ₹0 |
| Gross (CTC - Employer PF - Gratuity) | ₹0 |
| - Employee PF (12% Basic) | - ₹0 |
| - Professional Tax | - ₹0 |
| - Income Tax (New) | - ₹0 |
| Monthly In-Hand | ₹0 |
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What Is a CTC to In-Hand Salary Calculator?
A CTC to in-hand salary calculator shows how much of your annual CTC reaches your bank account each month. It subtracts employer PF, gratuity, your own PF, professional tax and income tax for FY 2026-27. Enter your CTC, choose the old or new tax regime and see your monthly take-home salary.
How to Calculate In-Hand Salary from CTC
- Enter your annual CTC.
- Set your basic salary percentage. The default is 50% of CTC.
- Choose how PF is calculated and enter your monthly professional tax.
- Pick the new or old tax regime. For the old regime, add your rent and deductions.
- Click Calculate In-Hand Salary to see your monthly and annual take-home pay.
About This CTC to In-Hand Salary Calculator
CTC (Cost to Company) is the total amount your employer spends on you in a year. The money that reaches your bank account each month, your in-hand or take-home salary, is always lower. Part of your CTC is paid into your PF account or held as gratuity, and your PF share, professional tax and income tax are deducted from your gross salary.
This calculator shows exactly where your CTC goes. Enter your CTC and see your basic, HRA and allowances, every deduction, and the final monthly in-hand salary for FY 2026-27.
It is useful when you compare job offers, plan a salary negotiation, check an appraisal letter, or decide how much EMI or SIP you can afford each month.
CTC to In-Hand Salary Formula
| Step | Formula |
|---|---|
| 1. Gross salary | CTC − employer PF − gratuity − other employer-paid benefits |
| 2. Taxable income | Gross salary − standard deduction (and, in the old regime, HRA exemption and other deductions) |
| 3. Income tax | Tax on taxable income as per slabs, minus rebate, plus 4% cess |
| 4. Annual in-hand salary | Gross salary − employee PF − professional tax − income tax |
| 5. Monthly in-hand salary | Annual in-hand salary ÷ 12 |
Example 1: ₹12 Lakh CTC (New Regime, FY 2026-27)
Assumptions: basic is 50% of CTC, HRA is 50% of basic, PF is 12% of full basic, professional tax is ₹200 a month, and there is no gratuity, variable pay or other benefit in the CTC.
| Item | Monthly | Annual |
|---|---|---|
| CTC | ₹1,00,000 | ₹12,00,000 |
| Employer PF (12% of basic) | ₹6,000 | ₹72,000 |
| Gross salary | ₹94,000 | ₹11,28,000 |
| Employee PF | ₹6,000 | ₹72,000 |
| Professional tax | ₹200 | ₹2,400 |
| Income tax | ₹0 | ₹0 |
| In-hand salary | ₹87,800 | ₹10,53,600 |
Taxable income is ₹11,28,000 minus the ₹75,000 standard deduction, which is ₹10,53,000. This is below ₹12 lakh, so the Section 87A rebate brings the tax to zero.
Example 2: ₹20 Lakh CTC (New Regime, FY 2026-27)
Same assumptions as Example 1. Monthly figures are rounded.
| Item | Monthly (approx.) | Annual |
|---|---|---|
| CTC | ₹1,66,667 | ₹20,00,000 |
| Employer PF (12% of basic) | ₹10,000 | ₹1,20,000 |
| Gross salary | ₹1,56,667 | ₹18,80,000 |
| Employee PF | ₹10,000 | ₹1,20,000 |
| Professional tax | ₹200 | ₹2,400 |
| Income tax (with 4% cess) | ₹13,953 | ₹1,67,440 |
| In-hand salary | ₹1,32,513 | ₹15,90,160 |
Taxable income is ₹18,80,000 minus ₹75,000, which is ₹18,05,000. Slab tax is ₹1,61,000, and 4% cess adds ₹6,440, so total tax is ₹1,67,440.
What Is Included in CTC?
| Component | What it is | In your monthly in-hand? |
|---|---|---|
| Basic salary | Fixed core pay. PF and gratuity are calculated on it. | Yes |
| HRA | House rent allowance. Partly tax-exempt in the old regime if you pay rent. | Yes |
| Special allowance | The balance of gross salary after basic, HRA and other components. | Yes |
| Variable pay / bonus | Performance-linked pay, often paid yearly or quarterly. | Not in regular monthly pay |
| Employer PF | Your employer's contribution to your PF account, usually 12% of basic. | No. It goes to your PF account. |
| Gratuity | A retirement benefit, about 4.81% of basic when counted in CTC. | No. It is paid on exit after the eligibility period. |
| Insurance and other benefits | Premiums and benefits paid by the employer. | No |
Deductions from Your Salary
| Deduction | How it works |
|---|---|
| Employee PF | 12% of basic. Some employers calculate it only on the ₹15,000 wage ceiling, which is ₹1,800 a month. This money goes to your own PF account. |
| Professional tax | A state tax of at most ₹2,500 a year. The amount varies by state, and some states do not charge it. |
| Income tax (TDS) | Calculated on your taxable income as per the regime you choose. Your employer deducts it through the year. |
| Other items (not included) | ESI, NPS, labour welfare fund, loans, canteen and similar deductions depend on your employer and are not included here. |
Income Tax Slabs Used (FY 2026-27)
New tax regime (default)
| Taxable income | Tax rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 to ₹8,00,000 | 5% |
| ₹8,00,001 to ₹12,00,000 | 10% |
| ₹12,00,001 to ₹16,00,000 | 15% |
| ₹16,00,001 to ₹20,00,000 | 20% |
| ₹20,00,001 to ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
Salaried taxpayers get a ₹75,000 standard deduction. Taxable income up to ₹12 lakh pays no tax because of the rebate of up to ₹60,000, so a salaried person with gross salary up to ₹12.75 lakh pays no income tax. Cess of 4% is added to the tax.
Old tax regime
| Taxable income (below 60 years) | Tax rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 to ₹5,00,000 | 5% |
| ₹5,00,001 to ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
The old regime has a ₹50,000 standard deduction and a rebate of up to ₹12,500 for taxable income up to ₹5 lakh. It allows deductions such as HRA exemption, Section 80C and 80D. Surcharge applies at very high incomes. Last checked on 4 October 2026. Rates and rules can change.
New Labour Codes and the 50% Basic Salary Rule
Under the Code on Wages, basic pay, dearness allowance and retaining allowance together must make up at least 50% of total remuneration. Many companies have restructured salaries to follow this rule.
A higher basic means higher PF and gratuity. This can lower your monthly in-hand salary even when your CTC stays the same, because more money goes into your PF account. The effect is smaller if your PF is calculated only on the ₹15,000 wage ceiling.
This calculator uses 50% as the default basic. You can change the percentage and the PF option to match your offer letter or payslip.
Features
- Monthly and annual view: See in-hand salary for both periods with a full breakup.
- Old and new regime: Compare take-home pay under both regimes for FY 2026-27.
- Custom salary structure: Change basic %, HRA %, PF basis and professional tax.
- HRA and deductions: Add rent and 80C or 80D deductions for the old regime.
- Variable pay and benefits: Include bonus, insurance and gratuity in your CTC.
- Private by design: The calculator runs in your browser using JavaScript, and your salary figures are not sent to our server.
Variable pay is averaged over 12 months in the monthly figure. In real life it is usually paid separately, so your regular monthly credit can be lower.
Why Is In-Hand Salary Lower Than CTC?
- Employer PF: It is part of CTC but is paid into your PF account, not to you each month.
- Gratuity and benefits: These are counted in CTC but paid later or as insurance cover.
- Your PF share: 12% of basic is deducted and saved in your PF account.
- Professional tax and income tax: Both are deducted before your salary is credited.
- Variable pay: It is often paid once or in parts, not every month.
Results are estimates for planning. Actual salary depends on your employer's structure, tax rules and your situation. This is not financial or tax advice. Please consult a qualified professional before deciding.
Frequently Asked Questions
1. What is CTC (Cost to Company)?
CTC is the total amount a company spends on you in a year. It includes your gross salary and employer-paid items such as the employer's PF contribution, gratuity, insurance and variable pay. It is not the same as the money you receive each month.
2. What is the difference between CTC and in-hand salary?
In-hand salary is the amount credited to your bank account each month. It is lower than CTC because employer PF, gratuity and other benefits are not paid monthly, and your own PF, professional tax and income tax (TDS) are deducted from your gross salary.
3. How do I calculate in-hand salary from CTC?
Subtract the employer PF, gratuity and other employer-paid benefits from your CTC to get your gross salary. Then subtract your employee PF, professional tax and income tax. Divide the result by 12 for the monthly in-hand salary. This calculator does these steps for you.
4. What is the in-hand salary for a CTC of ₹12 lakh?
With a 50% basic, PF on the full basic, no gratuity or other benefits in the CTC and ₹200 professional tax a month, a ₹12 lakh CTC gives about ₹87,800 a month under the new regime in FY 2026-27. There is no income tax because of the rebate. Your actual figure depends on your salary structure and employer policy.
5. What is the 50% basic salary rule under the new labour codes?
Under the Code on Wages, basic pay, dearness allowance and retaining allowance together should make up at least 50% of total remuneration. A higher basic means higher PF and gratuity, so monthly in-hand salary can be lower even if CTC stays the same. This calculator uses 50% as the default basic, and you can change it.
6. Which regime gives more in-hand salary, old or new?
It depends on your deductions. The new regime has lower slab rates and a rebate that makes taxable income up to ₹12 lakh tax free, so it often gives more in-hand salary if you claim few deductions. The old regime can work out better if you claim large deductions such as HRA, home loan interest and Section 80C. Use the regime option to compare both.
7. Is HRA taxable?
In the old regime, HRA is partly exempt if you pay rent. The exemption is the least of the actual HRA received, rent paid minus 10% of basic, and 50% of basic for metro cities or 40% of basic for other cities. In the new regime, HRA exemption is not available, so HRA is taxed like the rest of your salary.
8. What is professional tax?
Professional tax is a small state tax on salaried people. It is at most ₹2,500 a year and varies by state, and some states do not charge it. The calculator lets you enter your monthly amount.
9. Is the result exact?
No. It is an estimate for planning. Your actual salary slip depends on your employer's salary structure, how TDS is spread across the year, state rules and other deductions such as ESI, NPS or insurance. Check your offer letter or payslip for exact figures.
10. Is my salary data sent to your server?
No. The calculator runs in your browser, and your figures are not sent to our server.
11. Is this CTC to in-hand salary calculator free?
Yes. It is completely free, with no signup and no usage limits.