Salary Take Home Calculator
Convert annual CTC into monthly in-hand salary with PF, EPS, gratuity, bonus, professional tax and FY 2026–27 new versus old tax calculations shown separately.
Last Updated: July 22, 2026Calculate CTC to Monthly In-Hand Salary
Enter the components from your offer letter or payslip. The default model uses the new regime, 12% PF, 4.81% gratuity and editable payroll deductions.
Annual tax comparison
Enter valid figures and select Calculate Take-Home Salary.
| Month | Regular gross | Bonus | Employee PF | Professional tax | Income tax | Other deduction | Estimated in-hand |
|---|
The result is a planning estimate. Employers use their own salary structure, payroll rounding, tax declarations, benefit rules and payout calendar. Match every component with your offer letter, Form 16 and payslip.
What Is a Salary Take Home Calculator?
A salary take home calculator converts cost to company into the amount likely to reach your bank account. CTC is wider than salary paid in cash. It may include employer provident-fund contributions, gratuity provision, insurance, employer NPS, performance bonus and other benefits. In-hand salary is the payroll amount left after employee PF, professional tax, income-tax withholding and other deductions.
This calculator separates those layers. It first estimates Basic salary from your CTC percentage. It then identifies employer-funded components and derives annual payroll gross. Next, it applies employee PF and both FY 2026–27 tax regimes. The lower-tax choice is used automatically unless you select a regime yourself.
The output shows average monthly in-hand pay and a regular month without the annual bonus. This distinction matters because a package with ₹60,000 variable pay does not usually pay ₹5,000 extra every month. The month-wise table places the full variable amount in your chosen month while spreading estimated TDS across twelve months.
How to Use This CTC to In-Hand Calculator
- Enter total annual CTC from your offer letter.
- Enter Basic salary as a percentage of CTC. Use the exact annual Basic amount divided by CTC when available.
- Add annual bonus or variable pay and select its expected payout month.
- Select whether PF is calculated on actual Basic, capped at ₹15,000 monthly contributory pay or not applicable.
- Confirm whether the CTC includes a gratuity provision. Add employer NPS, insurance and other non-cash benefits.
- Enter annual professional tax and recurring payroll deductions such as meal-card recovery, transport or employee insurance.
- Add valid old-regime HRA, 80C, NPS, home-loan interest and other deductions.
- Keep automatic regime selection or force the regime used by your payroll.
- Select Calculate Take-Home Salary and compare the results with your salary breakup.
Do not enter employee PF inside the other 80C field. The calculator already adds employee PF to 80C and applies the combined ₹1.5 lakh limit. Enter only other eligible items, such as life-insurance premium, PPF, tuition fees or qualifying principal repayment.
CTC to In-Hand Salary Formula
Core payroll formulas
Annual payroll gross = CTC − employer PF − gratuity provision − employer NPS − other employer-funded benefits
Annual in-hand = payroll gross − employee PF − professional tax − selected income tax − other payroll deductions
Average monthly in-hand = annual in-hand ÷ 12
The employer PF and employee PF are normally 12% of eligible Basic plus DA. In actual-pay mode, this calculator uses 12% of the Basic derived from CTC. In ceiling mode, it uses the lower of monthly Basic and ₹15,000. The employer's full 12% is treated as a CTC cost. The usual EPS diversion is shown separately because it comes from the employer share, not in addition to it. Review the official EPFO contribution-rate guidance when matching your payslip.
Gratuity in CTC is estimated at 4.81% of annual Basic. This is a common provision based on the 15/26 formula, but an offer may use a different payroll convention. A provision inside CTC is not a monthly cash deduction from gross. It is removed while converting the wider CTC figure into cash payroll.
Worked Example for ₹12 Lakh CTC
Assume annual CTC of ₹12,00,000, Basic at 40%, annual variable pay of ₹60,000, PF on actual Basic, gratuity in CTC, ₹24,000 of insurance and other benefits, ₹2,400 professional tax and ₹1,000 monthly other deductions.
- Annual Basic is ₹4,80,000.
- Employee PF and employer PF are ₹57,600 each.
- Estimated gratuity provision is ₹23,088.
- Annual payroll gross becomes ₹10,95,312.
- The new-regime standard deduction reduces taxable salary to ₹10,20,312. The resident rebate reduces the calculated tax to zero because taxable income stays below ₹12 lakh.
- Annual in-hand pay is about ₹10,23,312, or ₹85,276 as a twelve-month average.
- A regular month is about ₹80,276. The selected bonus month is higher because the ₹60,000 variable amount is paid then.
The old-regime result depends on the deductions entered. Under the defaults, the new regime produces the lower estimated tax. Your result changes when HRA exemption, home-loan interest, 80C, medical insurance, NPS and other valid deductions are larger.
FY 2026–27 New Tax Regime
The default regime uses nil tax up to ₹4 lakh, followed by 5% from ₹4 lakh to ₹8 lakh, 10% from ₹8 lakh to ₹12 lakh, 15% from ₹12 lakh to ₹16 lakh, 20% from ₹16 lakh to ₹20 lakh, 25% from ₹20 lakh to ₹24 lakh and 30% above ₹24 lakh. The calculator then applies the resident individual rebate of up to ₹60,000 when taxable income does not exceed ₹12 lakh. These bands and rebate limits follow the Income Tax Department's individual tax-rate guidance.
Salary income receives the ₹75,000 standard deduction under the new-regime assumptions used here. This is why a salaried resident with salary income of ₹12.75 lakh and no conflicting income may have no regular tax. The official Section 19 deduction table lists ₹75,000 for the new regime and ₹50,000 in other cases. The result is not a blanket exemption for every receipt. Special-rate income, non-resident status, capital gains and other income need separate handling.
The calculator applies marginal rebate relief immediately above ₹12 lakh, normal surcharge thresholds for higher incomes and 4% Health and Education Cess. It assumes all income is ordinary salary income. It does not mix special-rate capital gains or dividend surcharge limits into payroll tax.
FY 2026–27 Old Tax Regime
For a person below age 60, the old regime starts with nil tax up to ₹2.5 lakh, 5% from ₹2.5 lakh to ₹5 lakh, 20% from ₹5 lakh to ₹10 lakh and 30% above ₹10 lakh. The initial nil slab rises to ₹3 lakh for a resident senior citizen and ₹5 lakh for a resident super senior citizen. The calculator uses the age group you select.
The old-regime estimate subtracts a ₹50,000 standard deduction, professional tax, eligible HRA exemption, home-loan interest, personal NPS up to ₹50,000 and the other deduction amounts entered. Employee PF and other 80C items share the ₹1.5 lakh cap. The resident rebate is limited to ₹12,500 when taxable income does not exceed ₹5 lakh.
Old-regime eligibility is more detailed than one total field. HRA depends on actual rent, salary, city and allowance. Home-loan rules depend on property use and conditions. Medical-insurance limits depend on covered people and age. Enter only deductions supported by your records.
CTC, Gross Salary and In-Hand Salary Compared
| Measure | What it includes | What it excludes | Best source |
|---|---|---|---|
| CTC | Cash salary plus employer costs and benefits | Nothing listed in the agreed package | Offer letter or compensation statement |
| Gross salary | Basic, HRA, allowances and taxable variable pay | Employer PF, gratuity provision and non-cash benefits | Payslip and Form 16 |
| Taxable salary | Gross salary after allowed exemptions and deductions | Eligible deductions under the selected regime | Form 16 and income-tax computation |
| In-hand salary | Amount remaining after payroll deductions | PF, professional tax, TDS and other deductions | Bank credit and payslip net pay |
Why Your Actual Take-Home Salary May Differ
Payroll does not always spread every component evenly. Joining or exit in the middle of a month, unpaid leave, attendance incentives, overtime, reimbursements and retrospective increments change net pay. Variable pay may depend on personal or company performance and may be paid quarterly instead of annually.
Professional tax varies by state and sometimes by salary band or month. Some states do not levy it. Employee State Insurance, labour welfare fund, food cards, loans, insurance top-ups and voluntary PF create extra deductions. Employers may cap PF at statutory pay or contribute on actual Basic. Use the settings that match your payslip.
TDS also changes during the year. Payroll may adjust later deductions after you declare investments, submit rent proof, receive a bonus or report previous-employer income. The table uses equal monthly TDS for planning. It is not a promise that each payslip will show the same amount.
How to Improve Your Salary Comparison
- Compare fixed cash, not headline CTC alone.
- Separate guaranteed pay from performance-linked variable pay.
- Check whether employer PF and gratuity sit inside or outside the quoted CTC.
- Review health insurance, employer NPS, stock awards and reimbursements separately.
- Use the correct state professional-tax amount.
- Compare both tax regimes using deductions you will genuinely claim.
- Review the regular-month output for household budgeting and the average output for annual planning.
A higher CTC may still produce a smaller monthly bank credit when a large share is variable, deferred or non-cash. Use the month-wise projection alongside benefit value, work location, role growth and job stability when comparing offers.
Limitations of This Calculator
This tool models ordinary Indian salary income for FY 2026–27. It does not calculate perquisite valuation, stock-option tax, arrears relief, leave encashment, gratuity tax, foreign income, special-rate capital gains, agricultural income integration, rent-free accommodation, company car benefits or detailed HRA eligibility.
The employer NPS input is treated as an eligible deduction without testing the percentage-of-salary cap for your employer category. Surcharge marginal relief is estimated for ordinary income. Professional tax and employer benefit treatment rely on the values you enter. Taxable salary cannot replace a complete return calculation when you have other income.
Use the result to understand a package and detect missing components. Use your employer's payroll statement and official income-tax computation for final TDS or filing.
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Frequently Asked Questions
How is monthly in-hand salary calculated from CTC?
First remove employer PF, gratuity, employer NPS and other employer-funded benefits from CTC to estimate payroll gross. Then subtract employee PF, professional tax, income tax and other payroll deductions. Divide annual in-hand pay by 12 for the average.
Is employer PF included in CTC?
Many employers include their PF contribution in CTC, but package structures differ. This calculator includes employer PF as a CTC component by default. Select no PF only when it does not apply.
Why is gross salary lower than CTC?
CTC may include employer PF, gratuity provision, insurance, employer NPS and other benefits that are not paid as monthly cash salary. Removing these components makes payroll gross lower than headline CTC.
What is the standard deduction for FY 2026-27?
This calculator uses ₹75,000 under the new regime and ₹50,000 under the old regime for eligible salary income.
Is salary up to ₹12.75 lakh tax-free under the new regime?
An eligible resident salaried taxpayer with ordinary salary income may reach ₹12 lakh taxable income after the ₹75,000 standard deduction and receive the rebate. Other income, special-rate income and eligibility details can change the result.
Which tax regime gives higher take-home salary?
The regime with lower estimated annual tax gives higher in-hand pay when all other payroll components stay the same. The new regime often wins with limited deductions. The old regime may win when valid exemptions and deductions are high.
Does gratuity reduce monthly salary?
A gratuity provision included in CTC reduces the cash gross derived from the package, but it is not normally shown as an employee deduction from monthly gross. Actual entitlement follows service and gratuity rules.
Is professional tax ₹200 every month?
No. Professional tax depends on the state, salary band and collection schedule. Some states do not levy it. Enter the annual amount shown by your payroll instead of assuming a fixed ₹200 every month.
How accurate is this salary take home calculator?
It accurately applies the figures and tax assumptions entered. Actual net salary changes with employer structure, payroll rounding, declarations, bonus timing, leave, state deductions, other income and final tax eligibility.