The Take-home Salary Calculator converts your CTC (Cost to Company) into your actual monthly in-hand salary. It subtracts the parts of your CTC that don’t reach your bank account — the employer’s PF contribution and gratuity — and then deducts your own PF, professional tax, and income tax to show what you really take home each month.
You can adjust your basic pay percentage, choose the New or Old tax regime, set your professional tax, and decide whether employer PF and gratuity are part of your CTC. It gives you both a monthly and an annual figure, with a full breakdown. Everything runs in your browser.
How to calculate your take-home salary
- Enter your annual CTC.
- Set your basic salary as a percentage of CTC (usually 40–50%).
- Choose the tax regime and set your professional tax, and tick whether employer PF and gratuity are included in your CTC.
- Read your monthly in-hand salary and the full annual breakdown.
Why CTC is more than your take-home
CTC is the total your employer spends on you, but a chunk of it never reaches your bank account each month. The employer’s PF contribution goes into your provident fund, gratuity is paid only when you leave (after 5 years), and then your own PF, professional tax, and income tax are deducted from your salary. What’s left is your take-home.
The deductions explained
- Employer PF — 12% of basic, part of CTC but paid into your PF account.
- Gratuity — about 4.81% of basic, part of CTC but paid on exit.
- Employee PF — 12% of basic, deducted from your salary into your PF.
- Professional tax — a small state tax, typically up to ₹2,400 per year.
- Income tax — TDS based on your salary and chosen regime.
Frequently Asked Questions
How do I calculate in-hand salary from CTC?
Remove the employer PF and gratuity from your CTC to get your gross salary, then subtract your own PF, professional tax, and income tax. This calculator does it and shows the monthly figure.
Why is my in-hand salary much lower than my CTC?
CTC includes employer contributions (PF, gratuity) that don’t come to you monthly, plus your salary is reduced by your PF, professional tax, and income tax. Together these can make in-hand noticeably lower than CTC.
What percentage of CTC is basic salary?
Basic is usually 40–50% of CTC. A higher basic increases PF contributions (good for savings) but can slightly lower your monthly take-home. You can adjust the percentage in the calculator.
Which tax regime gives a higher take-home?
It depends on your deductions. With few deductions the New regime usually gives a higher take-home; with large deductions the Old regime can. Try both — and use our Income Tax Calculator for a detailed comparison.
Is this the exact figure I will receive?
It is a close estimate. Your actual payslip depends on your company’s exact salary structure, allowances, and deductions, so treat this as a guide and check with your HR.