Salary Calculator (CTC to In-Hand)
CTC (cost to company) is the total your employer spends on you in a year. It is not what reaches your bank account. Your employer’s PF share, your own PF, professional tax and income tax all come out first. On a ₹12 lakh CTC with a 40% basic salary, you take home ₹90,200 a month, which is 90.2% of your CTC, because the tax is nil at that income under the new regime. On ₹25 lakh CTC you take home ₹1,64,192 a month, or 78.8%. Enter your own CTC below to see yours.
- Basic = 40% of ₹12,00,000 = ₹4,80,000 a year
- Employer PF = 12% of ₹40,000 × 12 = ₹57,600, so gross = ₹12,00,000 − ₹57,600 − ₹0 = ₹11,42,400
- Taxable income (new regime, after ₹75,000 standard deduction) = ₹10,67,400; tax with 4% cess = ₹0
- In-hand = ₹11,42,400 − PF ₹57,600 − professional tax ₹2,400 − tax ₹0 = ₹10,82,400
- In-hand salary: ₹10,82,400 (90.2%)
- PF (yours + employer’s): ₹1,15,200 (9.6%)
- Professional tax and other items: ₹2,400 (0.2%)
| Item | Per month | Per year |
|---|---|---|
| CTC | ₹1,00,000 | ₹12,00,000 |
| Less: employer PF | ₹4,800 | ₹57,600 |
| Less: other items not paid to you | ₹0 | ₹0 |
| Gross salary | ₹95,200 | ₹11,42,400 |
| Less: your PF | ₹4,800 | ₹57,600 |
| Less: professional tax | ₹200 | ₹2,400 |
| Less: income tax (with cess) | ₹0 | ₹0 |
| In-hand salary | ₹90,200 | ₹10,82,400 |
Read the guide: CTC vs In-Hand Salary: Why Your Take-Home Is Less Than Your CTC
How to use the salary calculator (ctc to in-hand)
- Enter your yearly CTC from your offer letter.
- Enter your basic salary as a percentage of CTC. If your offer letter lists basic in rupees, divide it by your CTC and multiply by 100.
- Choose how PF is worked out. Check your payslip: PF is either 12% of your full basic, or 12% of the wage ceiling (₹25,000 a month from 17 September 2026).
- Enter any CTC items you do not receive each month, such as gratuity or insurance, and your professional tax.
- Pick the tax regime. For the old regime, enter your total deductions for the year. Read the monthly in-hand salary and the breakdown table.
Formula
Gross salary = CTC − employer PF − other items not paid to you
Employer PF = Employee PF = 12% × basic salary per month (or 12% × ₹25,000 if PF is on the wage ceiling).
Taxable income = Gross salary − ₹75,000 standard deduction (new regime), or Gross salary − ₹50,000 − professional tax − your deductions (old regime).
Income tax = slab tax on taxable income, nil up to ₹12 lakh (new regime) or ₹5 lakh (old regime) because of the section 87A rebate, with marginal relief just above those limits, plus 4% cess.
In-hand salary = Gross salary − your PF − professional tax − income tax, divided by 12 for the monthly figure.
Worked examples
₹12 lakh CTC: no income tax
With a 40% basic salary, basic is ₹40,000 a month and PF is ₹4,800. Gross is ₹95,200 a month. After your PF of ₹4,800 and ₹200 professional tax, you take home ₹90,200. Taxable income is ₹10,67,400, which is below the ₹12 lakh rebate limit, so tax is nil.
₹15 lakh CTC: tax starts
Gross is ₹14,28,000 a year. After the ₹75,000 standard deduction, tax is ₹86,268 a year (₹7,189 a month) with cess. In-hand is ₹1,05,611 a month, which is 84.5% of CTC.
₹25 lakh CTC
Gross is ₹23,80,000. Tax with cess is ₹2,87,300 a year (₹23,942 a month). In-hand is ₹1,64,192 a month, or 78.8% of CTC. More than a fifth of the CTC never reaches your account.
PF on the ceiling instead of full basic
On ₹12 lakh CTC, if PF is worked out on ₹25,000 instead of the full ₹40,000 basic, your PF is ₹3,000 a month, and in-hand rises from ₹90,200 to ₹93,800. That is ₹3,600 more cash a month, but ₹3,600 less goes into your PF every month, counting your share and your employer’s together.
Old regime with ₹1.5 lakh of deductions
On the same ₹12 lakh CTC, the old regime with ₹1,50,000 of deductions gives tax of ₹1,04,520 a year and in-hand of ₹81,490 a month, against ₹90,200 in the new regime. At this income the new regime wins unless your deductions are much larger.
Common mistakes to avoid
- Treating CTC divided by 12 as your take-home. At ₹12 lakh that would be ₹1,00,000, but you actually receive ₹90,200.
- Forgetting that your employer’s PF share is inside the CTC. It is part of the total but it never reaches your account.
- Counting variable pay or a joining bonus as monthly pay. If it is not paid every month, put it in “other items” or lower your CTC to the fixed part.
- Using the old regime without checking. If your deductions are small, the new regime usually leaves more in hand.
- Assuming your payslip will match exactly. Employers differ in how they split pay, round tax month by month and handle bonuses, so use this as an estimate.
Frequently asked questions
What is the difference between CTC and in-hand salary?
CTC is the total yearly cost to your employer, including the employer’s PF share and other benefits. In-hand salary is what reaches your bank account each month after your PF, professional tax and income tax are cut.
How do I calculate in-hand salary from CTC?
Subtract the employer PF and any items you do not receive (gratuity, insurance) from CTC to get gross salary. Then subtract your own PF, professional tax and income tax, and divide by 12. This calculator does these steps and shows each one.
How much PF is deducted from my salary?
Your share is 12% of basic salary (plus DA, if any). Some employers work it on the wage ceiling instead, which is ₹25,000 a month from 17 September 2026, so the most they deduct is ₹3,000. Check your payslip, and see our EPF calculator for how it grows.
Is there income tax on a ₹12 lakh salary?
Under the new regime, there is no tax if your taxable income is up to ₹12 lakh, because of the section 87A rebate. The ₹75,000 standard deduction means a salary of up to ₹12.75 lakh is tax-free. Just above that, marginal relief limits the tax to the amount by which your income crosses the limit. See the income tax calculator for both regimes.
What is professional tax?
A tax some states charge on salaried people. The most any state can charge is ₹2,500 a year. The amount and the slabs depend on your state, and some states charge none. Enter the amount from your payslip.
Does gratuity come out of my in-hand salary?
Not usually. Gratuity is paid by your employer and only when you leave after the required service, so employers often show it inside CTC without paying it monthly. Put it in “other items” if your CTC includes it. See our gratuity calculator.
Why is my payslip different from this estimate?
Employers differ in how they structure pay, work out tax month by month, treat bonuses and variable pay, and apply PF and professional tax. Your payslip and your employer’s payroll team are the final word.
Sources: Income Tax Department — tax slabs and rebate · EPFO — contributions and wage ceiling