Salary / CTC Calculator (India)
Convert monthly CTC to in-hand salary under the new tax regime, with PF and gratuity. Know your exact take-home pay in India.
Monthly CTC (cost to company) including all components.
Monthly in-hand
₹88,277
Annual CTC
₹12,00,000
Annual tax
₹0
New regime + 4% cess
Salary breakdown
Estimate for FY 2026-27 under the new regime with ₹75,000 standard deduction and 87A rebate up to ₹12L. Assumes basic = 40% of CTC and PF on full basic. Professional tax varies by state. Check with your payroll.
How it works
Gross = CTC − employer PF (12% of basic) − gratuity (15/26 × basic). Tax on (gross − employee PF − ₹75,000) under new slabs with 87A rebate.
Example: ₹1L monthly CTC → ≈ ₹75,700 monthly in-hand.
Last updated: March 2026
How this calculator is verified
Checked by True Calculator automated test suite on
- Formula verified against a published worked example in the automated test suite
- Edge cases (zero, negative, boundary and unit-mismatch inputs) covered by unit tests
The full verification method is on our how we verify page. Found an error? Tell us and we will re-check it.
When to Use This Calculator
Use this calculator the moment a CTC figure lands in your offer letter, because CTC is not take-home pay. Indian salary structures deduct employee PF, gratuity provisions, income tax under the new regime and sometimes professional tax before money reaches your account; this tool models all of them from just the monthly CTC and the basic percentage. Comparing two offers becomes honest when both are reduced to take-home pay — a lower CTC with a higher basic can beat a bigger number with a small basic. It is also useful at appraisal time to see how a hike moves your tax, and for budgeting, since the in-hand figure is what rent, EMIs and SIPs must come out of. The new-regime assumptions mirror what most salaried taxpayers face.
How to Use This Calculator
- Step 1: Enter your monthly CTC, which is the total cost the employer pays for you each month.
- Step 2: Set the basic pay percentage of CTC your offer letter states, since PF is computed on basic.
- Step 3: Select the new tax regime and let the calculator apply the ₹75,000 standard deduction, PF and the gratuity provision.
- Step 4: Read the monthly take-home, the PF deduction, the gratuity component and the monthly income tax, and adjust the basic percentage to see its effect.
Worked Example
A developer in Bengaluru has a monthly CTC of ₹1,00,000 with basic pay at 40% of CTC. Enter 100000 as the monthly CTC and set basic at 40%; the calculator applies employee PF of 12% on the ₹40,000 basic, which is ₹4,800, and a gratuity provision of about ₹1,923 per month. After new-regime income tax with the ₹75,000 standard deduction, the monthly tax is about ₹3,851. The monthly take-home comes to about ₹91,350 before professional tax, or about ₹91,150 where a ₹200 monthly professional tax applies, as in Maharashtra.
Tips and Common Mistakes
- •Tip 1: Employee PF is 12% of basic pay plus dearness allowance, so a lower basic allocation means a smaller PF deduction and higher take-home.
- •Tip 2: The gratuity provision is a monthly set-aside, not a deduction from your salary; you receive the accumulated amount on exit.
- •Tip 3: Under the new regime, only the ₹75,000 standard deduction applies, so the take-home estimate here excludes 80C and other old-regime deductions.
- ✗Mistake 1: Entering the basic pay amount directly where the tool asks for a percentage of CTC, which double-counts the component.
- ✗Mistake 2: Ignoring professional tax, which some states such as Maharashtra and Karnataka deduct monthly; it is a real cut to take-home.
Frequently Asked Questions
What is the difference between CTC and in-hand salary?
CTC (cost to company) includes every employer cost — basic, allowances, employer PF, gratuity and insurance. In-hand is what actually reaches your bank after employee PF, income tax and professional tax.
How is PF calculated on salary?
Both you and your employer contribute 12% of your basic salary (plus DA) to EPF. This calculator assumes basic = 40% of CTC, so adjust if your structure differs.
Why is my in-hand lower than my CTC divided by 12?
Because employer PF, gratuity, employee PF, income tax (new regime with 4% cess) and professional tax are all deducted from the monthly figure. These can total 20–30% of CTC.
Is the new tax regime always better?
Not always. The new regime has lower slab rates but no 80C, 80D or home loan deductions. If your annual deductions exceed roughly ₹3–4 lakh, the old regime can win — compare both on the income tax calculator.
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