Salary Calculator
Convert annual CTC to monthly in-hand pay after PF, PT, and tax deductions.
Salary Calculator: CTC to in-hand pay
A salary calculator converts annual CTC into estimated monthly take-home pay. Employers deduct employee PF, professional tax, and income tax TDS before salary hits your account. This tool models that flow for Old and New tax regimes in India.
How to use this calculator
Start with annual CTC from the offer letter. Split employer PF and gratuity if listed separately. Some companies show them inside CTC, others as extra benefits on paper.
Enter basic salary so PF can be computed at 12% subject to the statutory wage ceiling. Select Old or New tax regime. Add 80C, 80D, and HRA only when modeling Old Regime with real investments and rent.
Pick your state for Professional Tax. Maharashtra, Karnataka, and West Bengal deduct PT monthly; many states do not. Compare output with your latest payslip. Gaps are normal when employers deduct cafeteria, insurance, or variable pay differently.
Use the result when comparing two offers with different PF structures or when negotiating how much of CTC can safely be variable pay.
Food coupons and LTA components change taxable income but not always cash in hand. If your offer splits a large special allowance outside PF, in-hand may look higher while retiral benefits stay lower.
Job switch mid-year? Re-run with combined income from both employers before accepting a counter-offer, because Form 16 TDS may not match final liability.
CTC to in-hand flow
Gross salary ≈ CTC minus employer PF and gratuity accrual (if inside CTC). Taxable income ≈ Gross minus standard deduction and Old Regime exemptions. In-hand ≈ Gross minus employee PF, professional tax, and monthly TDS. Example: ₹15 lakh CTC, ₹7.5 lakh basic, New Regime, Karnataka PT. Employee PF ≈ ₹900/month on capped basic. In-hand often lands near ₹95,000 to ₹1,05,000 depending on tax declarations and employer structure. Bonus and variable pay spike TDS in the payout month even when annual tax is lower.
Frequently Asked Questions
Salary calculator vs in-hand salary?
They measure the same thing: take-home after deductions. This page uses the common search term salary calculator for CTC to monthly net pay.
Why is in-hand lower than CTC divided by 12?
CTC includes employer PF, gratuity accrual, and sometimes insurance that never reaches your bank account each month.
What is Professional Tax?
A state tax on salaried income in states like Maharashtra and Karnataka, usually capped around ₹2,500 per year.
Is ₹75,000 standard deduction in New Regime?
Yes for salaried employees. It reduces taxable income before slab tax applies under the New Regime.
Why does my payslip differ from this estimate?
Meal coupons, group insurance, NPS deductions, or variable pay held until year end change net cash in specific months.
How is gratuity shown in CTC?
Many employers accrue gratuity inside CTC for accounting but pay it only on exit, which reduces monthly in-hand.
Does HRA change in-hand?
HRA is part of gross but may be partly exempt under Old Regime, which lowers TDS if declared correctly to the employer.
Does CTC include variable pay?
Target bonuses in CTC are not guaranteed in-hand. Model only fixed components unless your employer pays variable pay monthly.
New Regime default for TDS?
Employers default to New Regime TDS unless you opt into Old Regime at the start of the year with investment proofs.
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