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CTC to In-Hand Salary Calculator

Calculate monthly take-home salary from annual CTC with tax slabs, PF, and deduction breakdown.

Runs in your browser. Nothing you add is uploaded.

What the CTC to In-Hand Salary Calculator does

Understanding the difference between gross Cost to Company (CTC) and actual monthly in-hand take-home salary is critical for job negotiations, financial planning, and budgeting. This calculator breaks down basic pay, HRA, special allowances, Provident Fund (PF) contributions, and income tax deductions across standard tax regimes.

How to calculate take-home salary from CTC

  1. Enter your total annual Cost to Company (CTC) figure.
  2. Set your variable performance bonus percentage (if applicable).
  3. Select the tax regime you file under — the new regime is the default unless you opt out.
  4. Choose how your employer calculates PF: 12% of basic, the ₹1,800-a-month cap, or no PF.
  5. Enter your state's professional tax (₹0 if your state does not levy it).
  6. Read your monthly in-hand pay, then the annual breakdown underneath to see where the rest of the CTC goes.

The CTC to In-Hand Salary Calculator runs entirely in your browser — nothing you enter is uploaded, stored, or logged.

How it works

Take-Home Salary Formula

Monthly in-hand = (Fixed CTC − Employer PF − Employee PF − Professional tax − Income tax on fixed pay) / 12

Employer PF is part of CTC but goes to your PF account, so it is removed first. Income tax uses the FY 2025-26 slabs for the regime you choose, including the section 87A rebate and 4% cess.

Example: ₹12 lakh CTC with 10% variable pay and PF at 12% of basic: fixed gross ₹10,15,200, taxable income ₹10,60,200 (below ₹12 lakh, so no tax in the new regime) → about ₹79,000 a month in hand.

When to use it

Evaluating job offers & salary negotiations

Determine the real monthly disposable income from job offers with complex variable structures.

Annual tax planning & financial budgeting

Compare take-home compensation under the New and Old Tax Regimes to select the most tax-efficient structure.

Good to know

  • From FY 2025-26, the new regime charges no tax on taxable income up to ₹12 lakh (section 87A rebate). With the ₹75,000 standard deduction, that means salary up to ₹12.75 lakh is tax-free.
  • Just above ₹12 lakh, marginal relief applies: the tax can never be more than the income above ₹12 lakh, so a small raise never leaves you worse off.
  • Employer PF is inside your CTC but paid into your PF account, which is why it never appears in your bank balance.
  • Employee PF contributions earn statutory compound interest and provide tax-advantaged retirement savings.

Frequently asked questions

What is the difference between CTC and in-hand salary?

CTC (Cost to Company) includes all employer expenses such as bonuses and employer PF contributions, while in-hand salary is the actual amount deposited into your bank account after deductions.

Why is in-hand salary significantly lower than CTC?

CTC includes employer-side expenses such as Employer PF, gratuity, health insurance, and variable bonus pools, while in-hand salary is what you receive after all employer and employee deductions.

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