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CTC to In-Hand Salary Calculator

CTC is what you cost your employer. In-hand is what reaches your account. Enter your offer to see exactly where the difference goes, month by month.

Last updated

FY 2026-27 (AY 2027-28)
Your offer

₹12 Lakh · The total cost to company figure on your offer letter.

Most Indian employers set basic at 40–50% of CTC.

50% is typical in metros, 40% elsewhere.

Group insurance, meal cards, a variable bonus pool — anything counted in CTC but not paid monthly.

Provident fund and gratuity
How is PF calculated?

Statutory PF is compulsory only on wages up to ₹15,000 a month. Many employers contribute on full basic instead.

Does your CTC include a gratuity provision?

Usually booked at 4.81% of basic. You only receive it after five years of service.

Tax
Tax regime

Used for HRA exemption under the old regime only.

The result updates as you type. Nothing you enter is saved, sent to a server or shared.

Estimated monthly in-hand salary

₹94,269

₹11,31,223 a year — about 94.3% of your CTC

Where your CTC goes

  • In hand: ₹11,31,223
  • Deductions: ₹24,100
  • Employer contributions: ₹44,677

From CTC to gross

Annual CTC
₹12,00,000
Employer PF contributionPart of CTC, credited to your EPF account, not paid in cash.
−₹21,600
Gratuity provisionPayable only after 5 years of continuous service.
−₹23,077
Gross salary₹96,277 a month
₹11,55,323

Salary components

Basic salary
₹4,80,000
House rent allowance (HRA)
₹2,40,000
Special / other allowancesBalancing figure after basic and HRA.
₹4,35,323

Deductions from gross

Employee PF contribution
−₹21,600
Professional taxState levy, capped at ₹2,500 a year.
−₹2,500
Income tax (TDS)Estimated under the new regime.
−₹0

Take-home

Annual in-hand
₹11,31,223
Monthly in-hand
₹94,269
  • Professional tax assumed at the Maharashtra rate. ₹200 per month, ₹300 in February. Not levied below the notified wage threshold.
  • Income tax is spread evenly across twelve months. Real TDS varies month to month depending on when you submit investment proofs.
  • Variable pay, joining bonuses and reimbursements are not modelled — add them to "other employer costs" if they sit inside your CTC.

Monthly and annual breakdown

Monthly and annual breakdown
ComponentMonthlyAnnual
Basic salary₹40,000₹4,80,000
House rent allowance (HRA)₹20,000₹2,40,000
Special / other allowances₹36,277₹4,35,323
Gross salary₹96,277₹11,55,323
less Employee PF contribution₹1,800₹21,600
less Professional tax₹208₹2,500
less Income tax (TDS)₹0₹0
In-hand salary₹94,269₹11,31,223

How this calculator works

CTC is what you cost your employer, not what you are paid. The gap between the two has three parts: money the employer pays to someone other than you, money deducted from your salary before it reaches your account, and money you receive only much later.

The employer’s own provident fund contribution is the clearest example. It is counted in your CTC, but it goes into your EPF account rather than your bank account. So does the gratuity provision — an accounting entry for a benefit you receive only after five years of continuous service, and not at all if you leave earlier.

What remains after removing those is gross salary. From gross, three things are deducted: your own PF contribution of 12% of basic, professional tax if your state levies it, and TDS on your income tax. Whatever survives all of that is your in-hand salary.

Basic salary drives most of this. A higher basic means more PF from both sides and a larger gratuity provision — which is good for long-term savings but lowers immediate take-home. A lower basic does the opposite. Employers vary the ratio, which is why two identical CTCs can pay noticeably different amounts each month.

The formula

From CTC to in-hand

Gross salary = CTC − employer PF − gratuity provision − other employer costs In-hand salary = Gross salary − employee PF − professional tax − income tax

Everything above the line is cost to the employer; everything below it is deducted from what you earn. Only the final figure reaches your bank account.

The components

Basic = CTC × basic% HRA = Basic × HRA% Employee PF = 12% of (basic capped at ₹15,000, or full basic) Gratuity accrual = Basic × 15 ÷ 26 ÷ 12 (≈ 4.81% of basic)

The 4.81% gratuity figure comes straight from the statutory formula: fifteen days of pay per year of service, on a twenty-six day working month, spread across twelve months.

Worked example: a ₹12 lakh CTC offer

Rahul is offered ₹12,00,000 CTC in Maharashtra. Basic is set at 40% of CTC, HRA at 50% of basic, PF is on the ₹15,000 ceiling, and the CTC includes a gratuity provision. He chooses the new tax regime.

Step-by-step calculation for the worked example
Annual CTC₹12,00,000
less Employer PF (₹1,800 × 12)₹21,600
less Gratuity provision (4.81% of basic)₹23,077
Gross salary₹11,55,323
Basic (40% of CTC)₹4,80,000
HRA (50% of basic)₹2,40,000
Special allowance (balance)₹4,35,323
less Employee PF₹21,600
less Professional tax (Maharashtra)₹2,500
less Income tax, new regime₹0
Annual in-hand₹11,31,223
Monthly in-hand₹94,269

Rahul takes home about ₹94,269 a month — roughly 94% of CTC, because the section 87A rebate wipes out his tax entirely at this income. Another ₹43,200 a year goes into his EPF account from both sides combined, and ₹23,077 accrues towards gratuity he can claim after five years.

Things worth knowing

  • Employer PF and the gratuity provision are genuinely yours, but not now. Treat them as forced long-term saving, not as salary.
  • The ₹15,000 provident fund wage ceiling is a statutory minimum, not a maximum. Many employers contribute on full basic, which raises retirement savings and lowers monthly take-home. Ask which your employer does — it materially changes the number.
  • Professional tax is a state levy capped at ₹2,500 a year by the Constitution. Several states, including Delhi, Uttar Pradesh, Haryana and Punjab, do not levy it at all.
  • TDS is spread evenly here. In practice employers deduct less early in the year and catch up in the final quarter if you do not submit investment proofs, so January to March pay can be noticeably lower.
  • Variable pay is part of CTC but is paid only if targets are met, and often annually. Never plan monthly commitments around it.
  • Reimbursements such as fuel, phone and internet bills may be tax-free but require actual bills. They are excluded from this calculation.

Frequently asked questions

Why is my in-hand salary so much lower than my CTC?
Because CTC includes money that never reaches you monthly: the employer’s PF contribution, the gratuity provision, and often insurance and a variable pay pool. On top of that, your own PF, professional tax and income tax are deducted from what remains. A take-home of roughly 70–85% of CTC is normal, and it falls as income rises because tax takes a larger share.
Should I ask for a higher basic salary?
It depends on what you want. A higher basic increases PF from both sides, raises your gratuity entitlement, and increases the HRA you can claim under the old regime. It also lowers your monthly take-home. If you value retirement savings and are on the old regime paying significant rent, a higher basic usually helps. If you need cash now, it does not.
Is employer PF really part of my salary?
It is your money — it is credited to your EPF account in your name and earns interest. But you cannot generally access it until retirement or a permitted withdrawal event, so it is not spendable income. Counting it as salary when comparing two offers is fine; counting it when planning monthly expenses is not.
How accurate is this estimate?
The structure is accurate and the tax calculation follows the current rules, but the exact split of your CTC is decided by your employer. Ask HR for the detailed salary structure — the basic percentage, whether PF is on capped or full wages, and what sits in the variable component. Feed those real numbers in and the estimate will be close.
Does the tax regime change my take-home?
Yes, often significantly. The new regime usually leaves more cash in hand for people without large deductions. The old regime can win if you pay substantial rent in a metro, are repaying a home loan, or invest heavily under 80C. Switch the regime toggle above and compare the two monthly figures directly.

Sources

Every figure on this page is traceable to the official source below. If a source has changed since the date shown, please tell us and we will correct it.