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CTC to In-hand Calculator
Convert your annual CTC into an estimated monthly take-home salary. Adjust any input below and your results update instantly.
Understanding CTC vs. in-hand salary
The concept, the motivation, and what to watch out for.
Your CTC is a cost, not a paycheque
Cost to Company bundles together everything your employer spends on you — including money you never actually see month to month, like its own contribution to your provident fund and a gratuity provision that only pays out if you stay 5+ years. What actually lands in your account is your CTC minus those employer-side costs, minus your own PF contribution, professional tax, and income tax.
This calculator walks through that full chain — from CTC down to Basic, HRA and Special Allowance, then through every deduction, to your real monthly in-hand salary.
Employer PF and gratuity never reach your payslip
Both are provisioned out of your CTC every year, but one goes straight to your EPF account and the other only pays out on exit — neither shows up in your monthly credit.
Your tax regime changes the number materially
The new regime (now the default) skips old-regime deductions like your own PF contribution under Section 80C, but its lower rates and higher rebate often still come out ahead — worth comparing both.
How this calculator helps
Enter your CTC and typical structure — see the full breakdown down to your real monthly in-hand salary, under either tax regime.
Break down your CTC
Fill in the starred fields on the left — your results update instantly on the right.
Your details
Cap employer PF at ₹15,000 wage
Common once Basic crosses ₹15,000/month — off contributes on full Basic instead.
Compute tax under the old regime
Off assumes the new regime (the default since FY 2023-24).
≈ ₹12.00 L
e.g. ₹12,00,000 a year
e.g. 40% of CTC
e.g. 50% of Basic (metro)
e.g. ₹2,400/year (₹200/month)
These are example numbers. Edit any input on the left to see your own.
Your monthly in-hand salary
₹94,276
94% of your annual CTC
Annual CTC
₹12.00 L
Net in-hand (yearly)
₹11.31 L
₹11.55 L gross salary − ₹21,600 PF − ₹2,400 professional tax − ₹0 tax = ₹11.31 L net in-hand.
Where your CTC goes
Every component of your CTC, from Basic down to your final net in-hand amount.
ComponentAnnualMonthlyStatus
Basic salary₹4.80 L₹40,000
Salary component
40% of CTC
HRA₹2.40 L₹20,000
Salary component
20% of CTC
Special allowance₹4.35 L₹36,276
Salary component
36% of CTC
Employer PF₹21,600₹1,800
Not in your payslip
2% of CTC
Gratuity provision₹23,088₹1,924
Not in your payslip
2% of CTC
Employee PF-₹21,600-₹1,800
Deduction
2% of CTC
Professional tax-₹2,400-₹200
Deduction
0% of CTC
Income tax (new regime)₹0₹0
Deduction
0% of CTC
Net in-hand₹11.31 L₹94,276
Take-home
94% of CTC
Compare scenarios
See how switching regimes or the PF wage cap changes your monthly in-hand salary.
Your plan
New regime
₹94,276
Monthly in-hand
Baseline
Old regime instead
Same CTC
₹82,349
Monthly in-hand
-₹1.43 L
PF uncapped instead
₹15,000 wage ceiling
₹88,276
Monthly in-hand
-₹72,000
Worked example, using your numbers
A step-by-step walkthrough of how your CTC becomes your in-hand salary.
Step 1 · Basic & HRA
40% of CTC is Basic, with HRA at 50% of Basic
₹4.80 L + ₹2.40 L
Step 2 · Gross salary
After removing employer PF and gratuity, your gross salary is
₹11.55 L
Step 3 · Net in-hand
After your own PF, professional tax, and income tax, you take home
₹11.31 L
✓
Of your ₹12.00 L CTC, ₹11.31 L (94%) actually reaches you as in-hand salary each year.
Personalised insights
What your numbers reveal, and what changing them would do.
94% of your CTC reaches you as in-hand
₹12.00 L CTC becomes ₹11.31 L a year in-hand — ₹68,688 goes to employer costs, your own PF, and tax.
The new regime nets you ₹1.43 L more than the old
Under the old regime instead, your net in-hand would be ₹9.88 L a year.
₹44,688 of your CTC never reaches your payslip
₹21,600 goes to the employer's own PF contribution and ₹23,088 is provisioned for gratuity — both real costs to your employer, neither part of your monthly credit.
Income tax takes ₹0 of your gross salary
That's on top of ₹21,600 to your own PF and ₹2,400 in professional tax — the three deductions between gross salary and net in-hand.
How this is calculated
Every step of the math behind your result, shown in the open.
Basic and HRA, from your CTC
b = Basic as a % of CTC, h = HRA as a % of Basic, Basic = your basic salary, HRA = house rent allowance
Basic and HRA aren't fixed by law — they're set by your employer's own salary structure, which this calculator lets you adjust.
Example: 1200000% × 40% → ₹4.80 L Basic, × 50% → ₹2.40 L HRA
Gross salary — what's actually on your payslip
Gross Salary = Basic + HRA + Special Allowance combined, Employer PF = the employer's own PF contribution, Gratuity = the annual gratuity provision
Gross salary is the portion of your CTC that actually becomes part of your salary structure — everything else is an employer-side cost.
Example: ₹12.00 L − ₹21,600 − ₹23,088 → ₹11.55 L gross salary
Net in-hand salary
Employee PF = your own PF contribution, Professional Tax = the small state-level tax on employment, Income Tax = TDS deducted under your chosen regime
What finally lands in your bank account each month, after every deduction from your gross salary.
Example: ₹11.55 L − ₹21,600 − ₹2,400 − ₹0 → ₹11.31 L net in-hand
Assumptions
- Basic and HRA percentages aren't statutory — they follow your employer's own salary structure, which varies company to company.
- HRA exemption isn't modeled here — the full HRA is treated as taxable, which is exactly right under the new regime and a simplification under the old regime (see the dedicated HRA Exemption Calculator).
- Employee PF is passed through as a Section 80C investment, which only reduces tax under the old regime — the new regime doesn't allow this deduction.
- Voluntary Provident Fund top-ups, employer-provided perks (insurance, meal cards, etc.), and any bonus or variable pay component aren't modeled — this assumes a fixed CTC with no variable pay.
- Figures are indicative — not financial or tax advice.
Did you know?
A few facts behind how CTC breaks down into your in-hand salary.
4.81%
Gratuity accrues at a fixed statutory rate
The Payment of Gratuity Act's (15 × Basic ÷ 26) formula works out to a flat 4.81% of annual Basic provisioned every year, regardless of company policy.
₹2,500
Professional tax has a constitutional ceiling
Article 276(2) caps what any state can charge as professional tax at ₹2,500 per person per year — a limit that's stood since the Constitution was adopted.
2023-24
The new tax regime only recently became the default
Until FY 2023-24, the old regime was the default and you had to actively opt into the new one — now it's the reverse, and opting into the old regime requires a declaration.
₹15,000
Many employers cap their own PF contribution
Once Basic crosses ₹15,000/month, a lot of employers cap their own PF contribution at that wage — even though employees can still contribute on their full actual salary.
50%
HRA follows a simple metro rule of thumb
50% of Basic for metro cities (Delhi, Mumbai, Kolkata, Chennai), 40% for everywhere else — a convention, not a statutory requirement.
Frequently asked questions
Straight answers to the questions we hear most about CTC and take-home pay.
Why is my in-hand salary so much less than my CTC divided by 12?
CTC includes employer-side costs you never receive monthly — the employer's own PF contribution and the gratuity provision — plus your own PF contribution, professional tax, and income tax all come out before you're paid. For a typical salary structure, in-hand often runs 20-30% below CTC ÷ 12.
What happens to the employer's PF contribution if I never see it?
It's credited directly to your EPF account (net of the slice diverted to the Employees' Pension Scheme), building a retirement corpus in your name — it isn't lost, just not part of your monthly take-home. See the EPF Calculator to project what that account grows to.
Do I actually receive the gratuity amount every year?
No — gratuity only pays out as a lump sum when you leave the company, and only if you've completed 5+ years of continuous service. The annual figure shown here is just the accrual your employer provisions into your CTC, not a cash payment you receive.
Which tax regime should I pick?
The new regime is now the default and usually wins for salaried employees without large deductions to claim, thanks to its higher Section 87A rebate and lower slab rates. The old regime can still win if your Section 80C, HRA exemption, and other deductions add up to a large amount — use the Income Tax Calculator to compare your exact numbers.
Why does professional tax vary so much by state?
Professional tax is levied by state governments, not the centre, so each state sets its own slabs and due dates. A handful of states (Delhi, Uttar Pradesh, Haryana) don't levy it at all, while most others charge close to the constitutional ceiling of ₹2,500/year.
Are the Basic and HRA percentages fixed by law?
No — unlike PF or gratuity, there's no statutory rule fixing Basic or HRA as a percentage of CTC. Companies set their own salary structures, though 40-50% Basic and 40-50%-of-Basic HRA are common conventions.
Related calculators
Other tools worth checking alongside this one.
ITaxation
Income Tax Calculator
Compare your tax outgo under the old and new regimes instantly.
Try it
HTaxation
HRA Exemption Calculator
Work out the tax-exempt portion of your house rent allowance.
Try it
ESavings
EPF Calculator
Estimate your Employee Provident Fund corpus at retirement age.
Try it
GSalary
Gratuity Calculator
Estimate the gratuity payable to you based on tenure and last drawn pay.
Try it
Learn more
Articles to go deeper on the ideas behind this calculator.
Fundamentals
CTC vs. gross salary vs. net salary, explained
Untangling the three numbers on your offer letter and payslip.
5 min read
Fundamentals
Old vs. new tax regime: how to actually choose
A practical framework, not just a slab-rate comparison.
7 min read
Fundamentals
Why gratuity isn't part of your monthly salary
The 5-year vesting rule, and what happens if you leave early.
4 min read