Salary Calculator
Turn a CTC offer into take-home pay. Break a CTC down into gross salary, deductions and the monthly in-hand amount you actually receive.
About the Salary Calculator
Cost to Company is what your employer spends, not what reaches your account. Employer provident fund, gratuity provisioning and any insurance premium sit inside CTC but never appear in your bank balance, and your own PF share, professional tax and TDS come out of what remains. This calculator works through each layer to the monthly in-hand figure.
Applies to: financial year 2025-26 (assessment year 2026-27). Rates change with each Finance Act — confirm current figures before filing.
From CTC to in-hand
Gross = CTC - employer PF - gratuity provision; In-hand = Gross - employee PF - professional tax - income tax
- Employer PF
- 12% of basic, part of CTC but not of gross salary
- Gratuity provision
- Roughly 4.81% of basic, payable only after five years
- Employee PF
- 12% of basic, deducted from your gross salary
Structures vary between employers. Treat this as a close estimate and check the actual breakup in your offer letter.
Using this calculator
- Enter the annual CTC in the offer.
- Set the share of CTC that is basic salary.
- Add any variable pay and your state professional tax.
- Choose a tax regime and read the monthly in-hand figure.
Salary Calculator FAQs
Why is my in-hand salary so much lower than my CTC?
CTC includes costs that never reach you: the employer provident fund contribution, gratuity provisioning and often insurance premiums. Your own PF share, professional tax and TDS are then deducted from what remains, typically leaving 65-80% of CTC.
What is a good basic salary percentage?
Basic is usually set between 40% and 50% of CTC. A higher basic increases PF and gratuity, which improves long-term savings but reduces immediate take-home pay. A lower basic does the reverse.
Is professional tax the same everywhere?
No. It is a state levy, so it varies and some states do not charge it at all. Where it applies it is capped at Rs 2,500 a year, and it is deductible from salary income under the old regime.
Does variable pay count in monthly in-hand?
Usually not. Bonuses and performance-linked pay are normally disbursed annually or quarterly and are frequently conditional on company and individual performance, so treating them as guaranteed monthly income overstates your reliable cash flow.
How is TDS on salary calculated?
Your employer estimates your annual tax liability from your declared investments and regime choice, then deducts roughly one-twelfth each month. Under-declaring investments early in the year leads to larger deductions in the final quarter.
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Important: this calculator provides general information and arithmetic only. It is not personal financial, tax or investment advice. Projected returns are illustrations based on the rate you enter, not guarantees, and market-linked investments can fall in value. Verify current tax rates and scheme terms before acting, and consult a qualified adviser where the decision matters.