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Salary CTC to In-Hand Calculator

Estimate your monthly in-hand salary from annual CTC after PF, tax and professional tax.

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Monthly in-hand
₹90,200
Annual in-hand
₹10,82,400
Income tax
₹0

Approximation: basic = 40% of CTC, PF 12%, PT ₹2,400. Actual structure varies by employer.

How it works

This calculator turns an annual CTC into an estimated in-hand salary. Cost to company is what you cost the employer, not what you receive: it bundles the employer’s own PF contribution, and your gross pay then loses employee PF, income tax and professional tax before it reaches your account. The tool models exactly that pipeline using a fixed, typical salary structure.

The assumptions, in order: basic pay is taken as 40% of CTC; employee and employer PF are each 12% of that basic; gross salary = CTC − employer PF; and in-hand = gross − employee PF − income tax − ₹2,400 professional tax. Income tax follows FY 2025-26 rules, which Budget 2026 left unchanged for FY 2026-27 — a ₹75,000 standard deduction in the new regime (₹50,000 in the old), slab rates, a §87A rebate that zeroes tax when taxable income is within ₹12 lakh (new) or ₹5 lakh (old) with marginal relief just above the new-regime threshold, and 4% cess. In the old regime the tool applies no deductions beyond the standard one — no 80C, HRA or 80D.

Worked example — ₹12,00,000 CTC, new regime. Basic is 40% = ₹4,80,000, so PF is ₹57,600 on each side. Gross = 12,00,000 − 57,600 = ₹11,42,400. Taxable income = 11,42,400 − 75,000 = ₹10,67,400 — within the ₹12 lakh §87A limit, so income tax is zero. In-hand = 11,42,400 − 57,600 − 0 − 2,400 = ₹10,82,400 a year, or ₹90,200 a month — 90.2% of CTC. Push CTC to ₹20,00,000 and tax appears: taxable ₹18,29,000 attracts ₹1,65,800 of slab tax plus ₹6,632 cess = ₹1,72,432, leaving ₹1,36,097.33 a month in hand.

Real offers differ from the template. Basic can be anywhere from 35–50% of CTC; many employers compute PF only on the ₹15,000 statutory wage base (₹1,800 a month); professional tax varies by state (up to ₹2,500 a year, none in some states); and CTC often includes gratuity provisions, insurance premiums and variable pay that reduce the fixed monthly credit. The tax slabs are FY 2025-26 (kept for FY 2026-27 by Budget 2026), and surcharge on taxable income above ₹50 lakh is not modeled. Treat the output as an estimate for planning — verify against your offer letter’s actual breakup or with a CA.

Frequently asked questions

Why is in-hand so much lower than CTC?
CTC bundles employer costs — here the employer’s 12% PF contribution — that never reach your bank account. From the remaining gross, employee PF, income tax and professional tax are deducted. On ₹12,00,000 in the new regime the gap is ₹1,17,600 a year even though income tax is zero; on ₹20,00,000 the tool deducts ₹1,72,432 of tax and pays ₹16,33,168 in hand — a gap of about ₹3.7 lakh.
What salary structure does the calculator assume?
Basic = 40% of CTC, employee and employer PF each 12% of basic, and ₹2,400 a year of professional tax. Real offers put basic anywhere from 35–50% of CTC, many employers compute PF only on the ₹15,000 statutory wage base (₹1,800 a month), and professional tax is state-specific — up to ₹2,500 a year, with some states levying none.
Which income-tax rules does it apply?
FY 2025-26 new-regime slabs (which Budget 2026 left unchanged for FY 2026-27, as modeled here): nil to ₹4 lakh, then 5%, 10%, 15%, 20% and 25% bands up to ₹24 lakh and 30% beyond, with a ₹75,000 standard deduction and a §87A rebate that zeroes tax up to ₹12 lakh of taxable income, plus marginal relief just above it. The old regime keeps the 5%/20%/30% slabs, a ₹50,000 standard deduction and the ₹5 lakh rebate. Both add 4% cess; surcharge on high incomes is not modeled.
Why does the old regime show more tax here?
Because the tool applies only the ₹50,000 standard deduction in the old regime — no 80C, HRA or 80D, since it doesn’t know your investments. On ₹12,00,000 CTC it shows ₹1,45,828.80 of old-regime tax against zero in the new regime: ₹78,047.60 versus ₹90,200 a month in hand. With real deductions the old-regime figure would fall, so treat the old-regime in-hand as a conservative floor.
Which parts of a real CTC are not modeled?
Variable pay and bonuses, gratuity provisions, employer NPS, group insurance premiums, ESOPs and the HRA/special-allowance mix. If a large slice of your CTC is variable or deferred, your fixed monthly credit will be lower than this estimate.
Is the PF shown here what my EPF passbook will show?
Approximately: 12% of the assumed basic from you (₹57,600 a year in the ₹12 lakh example) plus the same from your employer. In reality the employer share splits 3.67% to EPF and 8.33% to EPS on a wage base capped at ₹15,000, and many employers compute PF only on that base — check your payslip.

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