Take-Home Pay Calculator
Estimate your monthly in-hand salary from CTC with EPF, gratuity and new regime tax. See exactly what lands in your bank account every month.
Monthly take-home
₹70,582
Total monthly deductions
₹4,040
Incl. EPF ₹3,840/mo
Annual income tax
₹0
Taxable income (new regime)
₹7,74,378
After ₹75,000 standard deduction
Uses new-regime slabs with the ₹75,000 standard deduction and 4% cess. EPF uses 12% of basic (employee and employer); gratuity at 15/26 of basic. Professional tax assumed at ₹200 per month — it varies by state.
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 the take-home pay calculator whenever a salary offer or a hike letter arrives, because CTC is not money in the bank. Employers quote CTC to look generous, but the gap to in-hand pay is filled by employee EPF, employer EPF, gratuity, income tax and professional tax — this tool shows each component. It is also the right check before accepting an offer: two offers with the same CTC can differ by thousands per month depending on the basic split and EPF inclusion. Use it at appraisal time to see how a hike changes your tax, and when budgeting, because the monthly in-hand figure is the number your rent, EMI and savings plans should be built around. The new-regime assumptions mirror the default tax structure most salaried taxpayers face, with the standard deduction and rebate already applied.
How to Use This Calculator
- Step 1: Enter your monthly CTC — the total cost to your employer, including your salary and employer EPF.
- Step 2: Set the basic salary as a percentage of CTC (30–50% is the common range).
- Step 3: Choose whether to include EPF; most salaried employees are covered.
- Step 4: Read your monthly in-hand pay, total deductions and annual income tax under the new regime.
Worked Example
An employee with an ₹80,000 monthly CTC and 40% basic pays employee EPF of ₹3,840 a month, plus gratuity and professional tax set-asides. After the ₹75,000 standard deduction, taxable income is about ₹7,74,378 and the rebate brings annual tax to zero, leaving roughly ₹70,582 in hand every month. At ₹2,00,000 CTC without EPF, the new-regime tax rises to about ₹2,69,712 plus ₹10,788 cess, and monthly in-hand lands near ₹1,72,579.
Tips and Common Mistakes
- •Tip 1: The new-regime rebate means incomes up to ₹12 lakh taxable can carry zero tax — do not assume you must pay.
- •Tip 2: Check your state's professional tax — at ₹200 a month it is ₹2,400 a year that some states do not charge.
- •Tip 3: Review the old regime if you claim sizeable deductions like 80C, 80D and NPS — it can still win at higher incomes.
- ✗Mistake 1: Do not compare offers by CTC alone — in-hand differs hugely with basic %, EPF and other components.
- ✗Mistake 2: Do not forget employer EPF and gratuity reduce the gross from which tax and in-hand are computed.
Frequently Asked Questions
How is take-home pay different from CTC?
CTC is the total cost to the employer, including your salary plus employer EPF and gratuity. Take-home pay is what actually lands in your bank account after employee EPF, income tax, cess and professional tax are deducted.
Which tax regime does this calculator use?
The new regime slabs with the ₹75,000 standard deduction, the ₹60,000 rebate on taxable income up to ₹12 lakh, and 4% health and education cess. This matches the default regime for most salaried taxpayers.
Why is my in-hand salary lower than my CTC minus tax?
Several amounts come out of CTC first: employer and employee EPF (12% of basic each), gratuity (15/26 of basic), the standard deduction, income tax, and professional tax. Each one reduces the monthly amount that reaches your account.
What is professional tax and who pays it?
It is a state-level tax of up to ₹200 per month charged on salaried employees in states like Maharashtra, Karnataka and West Bengal. The calculator assumes ₹200 monthly; if your state does not levy it, the take-home is slightly higher.
Can I increase take-home pay legitimately?
Yes — structure allowances smartly and claim deductions you are eligible for. Under the old regime, contributions like ELSS and NPS up to the section 80C limit can lower taxable income meaningfully.
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