Salary Take-Home Calculator (CTC to In-Hand)
The number that matters on the 1st of the month. Enter your CTC and see every deduction between the offer letter and your bank account.
Assumes the FY 2025-26 new tax regime with standard deduction, EPF at 12% of basic for both employee and employer, and gratuity provision at 4.81% of basic. Company-specific components like meal cards, NPS or insurance premiums can shift the result slightly.
Why CTC and in-hand are so far apart
Cost to company is everything the employer spends on you, not what you receive. Three wedges separate it from your bank credit. First, employer-side costs bundled into CTC: the employer’s 12% EPF contribution and the 4.81% gratuity provision are your money in a sense, but retirement money, not salary. Second, your own deductions: employee EPF at 12% of basic and professional tax. Third, income tax deducted at source every month.
The basic salary percentage matters
EPF and gratuity are computed on basic salary, so a higher basic percentage means more forced savings and a lower in-hand today. Companies typically set basic at 40% to 50% of fixed pay. Slide the percentage in the calculator to see the trade-off; a 50% basic against 40% on a ₹12 lakh CTC moves roughly ₹1,400 a month from your account into EPF, which is not lost money, just money you meet again at retirement.
Reading an offer letter with this tool
When comparing offers, never compare CTCs directly. A ₹14 lakh offer with a ₹2 lakh variable component and employer EPF inside CTC can pay less per month than a ₹13 lakh offer that is all fixed. Enter each offer’s numbers separately, put the variable portion in the bonus field, and compare the monthly readouts. Variable pay is real but arrives quarterly or annually and depends on performance, so the monthly figure here deliberately excludes it.
Worked example: comparing two offers
Offer A: ₹14 lakh CTC with ₹2 lakh variable, employer EPF inside CTC. Offer B: ₹12.5 lakh CTC, all fixed, employer EPF inside CTC. Enter each: A’s fixed pay is ₹12 lakh, monthly take-home lands near ₹85,000; B’s take-home lands near ₹89,000. B pays more every month despite the smaller headline, and A only wins if the variable actually pays out well. Recruiters compare CTCs; your bank account compares monthly credits. This tool argues on your bank account’s side.
Levers inside your own structure
Some employers allow flexible structuring. Raising basic increases EPF (forced savings, lower tax later) but cuts monthly cash. Employer NPS under 80CCD(2), where offered, is deductible even in the new regime, up to 14% of basic, one of the few remaining tax shelters. Reimbursement components like telephone or books reduce taxable salary only with actual bills. Model each variant here before your HR discussion so you negotiate with numbers rather than impressions.
Frequently asked questions
Why is my in-hand salary so much less than CTC divided by 12?
Because CTC includes employer EPF and gratuity that never hit your account monthly, and your account is further reduced by employee EPF, income tax and professional tax. A ₹12 lakh CTC typically lands around ₹83,000 to ₹88,000 per month depending on structure.
Is the calculation using the new or old tax regime?
The new regime for FY 2025-26, which is the default and the better choice for most salaried taxpayers now. If you claim large old-regime deductions, compute your tax in our income tax calculator and adjust.
What is the gratuity deduction shown?
Employers provision about 4.81% of basic toward the gratuity you become entitled to after 5 years of service. When it is part of CTC, it reduces monthly pay even though you receive it later as a lumpsum.
Does professional tax apply to me?
Most states levy it, capped at ₹2,500 per year (about ₹200 per month). A few states like Delhi do not. Untick the box if your state does not levy it.