How is in-hand salary calculated from CTC?

CTC is the employer's total cost, so it includes money that never reaches your bank. First the employer-side pieces come out — employer PF (12% of basic), gratuity accrual (4.81% of basic), employer NPS, EDLI and admin charges, insurance premiums and any annual variable pay — leaving your gross salary. From gross, your own deductions come out: employee PF, voluntary PF, professional tax, ESI if applicable, and TDS. What remains, divided by 12, is your monthly in-hand.

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

Because roughly 10–18% of a typical CTC is never monthly cash. On a ₹12 lakh CTC with a 50% basic, employer PF takes ₹72,000 and gratuity accrual another ₹28,860 before your gross is even calculated — and variable pay, if any, is paid once or twice a year rather than monthly.

Does professional tax really vary by state?

Yes, and it is one of the most commonly wrong figures in salary calculators. It is a state levy capped at ₹2,500 a year by the Constitution. Karnataka charges ₹200/month above ₹25,000 salary, Maharashtra charges ₹200 for eleven months and ₹300 in February, West Bengal uses five slabs, and Delhi, Haryana, Uttar Pradesh, Rajasthan and several others do not levy it at all. Pick your state, or type the exact figure from your payslip.

Which tax regime should I choose?

Both are computed for you. The new regime has wider slabs, a ₹75,000 standard deduction and no tax at all up to ₹12 lakh taxable income, but it ignores HRA, 80C, 80D and home-loan interest. The old regime is usually better only if your exemptions and deductions are large — typically high rent in a metro plus a full 80C, 80D and a home loan. Set the regime to “Best” and the cheaper one is applied automatically.

What does the ₹15,000 PF wage ceiling change?

EPF is 12% of basic, but employers are only obliged to contribute on the first ₹15,000 of monthly basic — ₹1,800 a month. Many large companies cap it there, which raises your take-home but slows your PF corpus. Others contribute on full basic, which does the opposite. Toggling this can move monthly in-hand by several thousand rupees, so check your offer letter.

Is gratuity really part of my CTC?

Many employers include a 4.81% accrual in the CTC figure even though gratuity is only payable after five years of continuous service. If you leave earlier you never receive it, so it reduces your effective package. Turn the toggle off if your offer does not include it.

How is HRA exemption worked out?

Under the old regime the exemption is the lowest of three figures: the HRA you actually receive, rent paid minus 10% of basic, and 50% of basic in Delhi, Mumbai, Kolkata or Chennai (40% elsewhere). Enter your rent and the calculator shows the exempt amount. Rent above ₹1 lakh a year needs the landlord's PAN. The new regime gives no HRA exemption at all.

When does ESI get deducted?

Employees' State Insurance applies while monthly gross is ₹21,000 or below — 0.75% from you and 3.25% from the employer. It is applied automatically when your gross falls under the limit, and drops off above it.

How accurate is the tax figure?

The slabs, ₹87A rebate, surcharge, marginal relief and 4% cess are all applied as written in the Act, and the exact slab table used is shown under “How the tax was calculated” so you can check it. It still assumes salary is your only income and that your declarations are complete. If you already know your annual tax from Form 16, type it into the override field and the in-hand figure will use that instead.

Is any of this uploaded?

No. Every figure is calculated in your browser — your salary never leaves your device, and there is no account or sign-up.

CTC to In-Hand Salary Calculator

Turn annual CTC into a real payslip — PF, gratuity, state-wise professional tax, ESI, and both tax regimes compared.

Annual CTC (₹)

₹12 L cost to company

Basic pay (% of CTC)50%₹6 L/yr

HRA (% of basic)50%₹3 L/yr

Variable pay (% of CTC)0%none

Work state (professional tax)

Nil below ₹25,000/month; ₹200/month above it (₹2,400 a year).

Financial year

Tax regime

₹85,395/month

Estimated in-hand salary · ₹10,24,740 a year

Take-home is 85.4% of CTC

Which regime is cheaper?

FY 2025-26 · AY 2026-27

The new regime saves you ₹1,11,746 this year. The cheaper one is applied above.

Your payslip

Earnings

Basic pay₹50,000

House rent allowance₹25,000

Special allowanceBalancing figure₹16,595

Gross salary₹91,595

Deductions

Employee PF (12%)₹6,000

Professional taxKarnataka — ₹200/month₹200

Total deductions₹6,200

Net pay in your bank₹85,395

Inside your CTC, but not in your payslip

₹1,00,860 of your ₹12,00,000 CTC — 8.4% you never see monthly.

Employer PF (12%)On full basic₹72,000

Gratuity accrual (4.81%)Paid out after 5 years₹28,860

Total₹1,00,860

Your PF corpus grows by ₹1,44,000 a year, of which ₹14,994goes to the EPS pension account. That is your money — it just isn't spendable this month.

ESI is applied automatically below ₹21,000/month gross.

Processed 100% in your browser — nothing you enter here is ever uploaded.

Common use cases

Judging an offer before you accept

A ₹20 lakh CTC can land anywhere between ₹1.1 and ₹1.4 lakh a month depending on the basic split, PF cap, gratuity and variable pay. This shows the real number instead of CTC ÷ 12.

Comparing two offers fairly

Run both CTCs through the same structure and state, then compare net pay. A lower CTC with no variable component often beats a higher one that holds back 20%.

Choosing your tax regime

Declare your rent, 80C and home-loan interest once and see exactly how much the old regime saves — or how much it costs you compared with the new one.

Checking your payslip is right

Enter your figures, add your payslip's professional tax, and see whether the PF, ESI and TDS being deducted actually match the rules.

How to use the CTC to In-Hand

Enter your annual CTC — everything below updates instantly, with nothing sent to a server.

Match the sliders to your offer letter: basic is usually 40–50% of CTC, HRA is 40–50% of basic, and any performance bonus goes in the variable field so it isn't counted as monthly pay.

Pick the state you work in. Professional tax is a state levy, so it is ₹200/month in Karnataka, ₹2,500 a year in Maharashtra, and nothing at all in Delhi, Haryana or Uttar Pradesh — a detail most calculators hard-code wrongly.

Open “Salary structure & PF” if your employer caps PF at the ₹15,000 wage ceiling, contributes to NPS, or loads insurance premiums into your CTC. These change take-home by thousands a month.

Open “HRA & old-regime deductions” and add your rent, 80C, 80D and home-loan interest. Both regimes are then computed side by side so you can see which one is actually cheaper for you.

Read the payslip panel: earnings on the left, deductions on the right, net pay at the bottom — the same layout your company's payslip uses. Switch between monthly and annual with one click.

CTC to In-Hand Salary Calculator

Which regime is cheaper?

Your payslip

Inside your CTC, but not in your payslip

Common use cases

Judging an offer before you accept

Comparing two offers fairly

Choosing your tax regime

Checking your payslip is right

How to use the CTC to In-Hand

Frequently asked questions

Related tools

Salary structure & PF

HRA & old-regime deductions

Which regime is cheaper?

Your payslip

Inside your CTC, but not in your payslip

How the new-regime tax was calculated

Common use cases

Judging an offer before you accept

Comparing two offers fairly

Choosing your tax regime

Checking your payslip is right

How to use the CTC to In-Hand

Frequently asked questions

How is in-hand salary calculated from CTC?

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

Does professional tax really vary by state?

Which tax regime should I choose?

What does the ₹15,000 PF wage ceiling change?

Is gratuity really part of my CTC?

How is HRA exemption worked out?

When does ESI get deducted?

How accurate is the tax figure?

Is any of this uploaded?

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