CTC to In-Hand Salary Calculator
Convert your annual CTC to exact monthly take-home salary. Instant results with full PF, HRA, tax & gratuity breakdown.
₹Enter Your CTC
Enter in lakhs. Example: 12 for ₹12,00,000
Variable pay is taxed at your marginal slab rate
Metro: Delhi, Mumbai, Chennai, Kolkata — affects HRA %
How it's Calculated
// Step 1: Gross Salary
Gross = CTC − Employer PF − Gratuity
// Step 2: Deductions
PF Employee = 12% of Basic
Prof. Tax = ₹2,400/year
Income Tax = per slab
// Result
In-Hand = Gross − Deductions
📌 Key Assumptions (FY 2026-27)
- •Basic = 40% of CTC
- •HRA = 50% metro / 40% non-metro of Basic
- •EPF = 12% of Basic (EPFO ceiling ₹15,000)
- •EPF interest rate 8.25% p.a.
- •Professional Tax = ₹200/month
- •New Tax Regime · Std deduction ₹75,000
- •Zero tax up to ₹12L (87A rebate, Budget 2025)
Related Calculators
How to Calculate CTC to In-Hand Salary in India
Converting CTC (Cost to Company) to in-hand salary requires understanding how Indian companies structure compensation. Your CTC is the total annual cost your employer incurs for your employment — it is not what you receive. The difference can be substantial: for a Rs.15 LPA CTC, your in-hand might be Rs.1.06 lakh per month, not Rs.1.25 lakh as a naive division would suggest.
The standard formula is: In-Hand = Gross Salary - Employee PF - Professional Tax - Income Tax. But to get there, you first need to derive your Gross Salary from CTC: Gross = CTC - Employer PF - Gratuity Provision. This two-step process is what makes manual calculation error-prone.
Step-by-Step Breakdown
Identify Fixed vs Variable CTC
Separate your fixed CTC from variable pay (annual bonus, performance incentive). Variable pay is excluded from monthly calculations.
Calculate Basic Salary
Basic = 50% of Fixed CTC (standard for IT/corporate). For Rs.12 LPA fixed CTC, Basic = Rs.6 LPA = Rs.50,000/month. Some companies use 40-45% — check your offer letter.
Calculate HRA
HRA = 50% of Basic in metro cities (Mumbai, Delhi, Kolkata, Chennai) or 40% in non-metro. Metro basic Rs.50K/month = HRA Rs.25,000/month.
Subtract Employer PF and Gratuity from CTC
Employer PF = 12% of Basic, capped at Rs.1,800/month. Gratuity provision = 4.81% of Annual Basic. These reduce your Gross from CTC.
Subtract Employee Deductions
Employee PF = same as employer (12% of basic, max Rs.1,800/month). Professional Tax = Rs.200/month in most states. Income Tax = as per your slab.
CTC vs Gross vs Net Salary — Key Differences
These three terms are frequently confused in job offers and salary negotiations. Understanding the difference helps you accurately compare offers from different companies.
| Term | Definition | Example (Rs.15 LPA CTC) |
|---|---|---|
| CTC | Total employer cost including PF, gratuity, insurance | Rs.15,00,000/year |
| Gross Salary | CTC minus employer PF and gratuity — what appears in your salary slip as total earnings | ~Rs.13.35L/year |
| Net / In-Hand | Gross minus employee PF, professional tax, and income tax — credited to your bank | ~Rs.12.77L/year |
For a Rs.15 LPA CTC under the new tax regime, you typically receive around Rs.1.06 lakh per month in-hand. The difference from your naive expectation (Rs.1.25L/month) is accounted for by employer PF (Rs.1,800/month), employee PF (Rs.1,800/month), professional tax (Rs.200/month), and income tax (~Rs.5,200/month).
New Tax Regime vs Old Tax Regime — Which Reduces Your TDS More?
Under the new tax regime for FY 2026-27, salaries up to Rs.12 lakh (after Rs.75,000 standard deduction) attract zero income tax due to the enhanced Section 87A rebate of Rs.60,000. This means for CTC up to approximately Rs.13-13.5 LPA, your monthly TDS will be zero under the new regime. For higher salaries, compare both regimes using our Tax Estimator before declaring your regime to your employer at the start of the financial year.
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