Salary Calculator (CTC to In-Hand)

Your CTC (Cost to Company) is not what lands in your bank account. It includes your employer's PF contribution and gratuity, and your pay then shrinks further after your own PF, professional tax and income tax. This calculator shows your real monthly in-hand salary.

How to use the salary calculator

1. Enter your yearly CTC.
2. Enter your basic salary as a percentage of CTC. It is usually 40–50%, and the new labour codes push it towards 50%.
3. Choose how your PF is calculated and whether gratuity is part of your CTC. Check your offer letter.
4. Enter the professional tax for your state (often ₹200 a month) and choose your tax regime.

How in-hand salary is worked out

Gross salary     = CTC − Employer PF − Gratuity
In-hand salary   = Gross salary − Your PF − Professional tax − Income tax

• PF: 12% of basic from you and a matching 12% from your employer. Some companies cap it at 12% of ₹15,000, which is ₹1,800 a month.
• Gratuity: often shown in CTC as 4.81% of basic, but paid only when you leave after 5 years.
• Professional tax: a state tax of up to ₹2,500 a year. Some states don't have it.

Example

Your CTC is ₹12,00,000 with basic at 50%, full PF, gratuity in CTC, ₹200 professional tax and the new regime.

• Basic = ₹6,00,000 a year
• Employer PF = ₹72,000 and gratuity = ₹28,860, so gross salary = ₹10,99,140 (₹91,595 a month)
• Your PF = ₹6,000 a month, professional tax = ₹200 a month
• Income tax = ₹0 (taxable income is below ₹12 lakh)
• In-hand salary = ₹85,395 a month

If PF is capped at ₹1,800 a month, the in-hand salary rises to about ₹93,795 a month, but less goes into your retirement savings.

In-hand salary at different CTCs

New regime, 50% basic, full PF, gratuity in CTC, ₹200 professional tax:

Things this calculator doesn't cover

Bonuses, variable pay, meal cards, NPS through your employer and the HRA exemption change the numbers. For a detailed tax comparison with deductions, use the income tax calculator, and for HRA use the HRA calculator.