Convert CTC to monthly take-home with full tax and deduction breakdown.
Updated Reviewed by Sajid Hussain· Editor
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In-Hand Salary bills sellers in Indian Rupee (INR), so this calculator works in INR — not your selected US Dollar ($). Every figure below matches your real In-Hand Salary statement. Localised USD marketplaces are coming soon.
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Your CTC and your in-hand salary are two very different numbers. An in-hand salary calculator converts your annual Cost to Company (CTC) into the exact amount deposited into your account each month — after income tax, employee PF, professional tax, and all other deductions are taken out.
**Key concept: CTC is not your salary.** CTC includes what your employer contributes — employer PF (12% of basic), gratuity provision (4.81% of basic), and any insurance or other benefits. None of this reaches your bank account. Understanding this gap is the first step to knowing your real income.
**Tax regime matters more than most people realise.** From FY 2023-24, the new tax regime is the default for salaried employees. It offers simpler, lower slab rates but removes most exemptions. The old regime gives you deductions for HRA, PF, 80C investments, and health insurance — sometimes saving more. The right choice depends entirely on your individual numbers, not general advice.
**HRA exemption can be substantial.** If you live on rent and choose the old regime, you may be able to exclude a large portion of your HRA from tax — dramatically reducing your taxable income. The exemption is the minimum of three different calculations, and this tool handles all three automatically.
**Professional tax varies by state.** Maharashtra charges ₹2,500 per year; Karnataka and several others charge ₹2,400. States like Delhi have no professional tax at all. This calculator covers all states and deducts the correct amount.
Built specifically for FY 2025-26, this tool applies the latest Budget 2025 rules — including the ₹75,000 standard deduction under the new regime, the ₹12 lakh rebate threshold, and updated slab rates — so your calculation is always current.
Quick facts
Start with your annual CTC from your offer letter or latest salary slip. Set your basic salary percentage — most companies keep it between 40% and 50% of CTC. Basic drives your PF, HRA, and gratuity calculations, so it is worth getting right.
If you pay rent, enter the monthly amount. This feeds the HRA exemption calculation in the old regime. Select your state for professional tax — the deduction varies significantly, from ₹0 in Delhi to ₹2,500 in Maharashtra.
Pick the new regime (default from FY 2023-24, simpler slab rates, no exemptions) or the old regime (you can claim HRA, 80C, 80D deductions). If you choose the old regime, enter your Section 80C and 80D amounts to see the full deduction benefit.
The calculator shows your monthly and annual take-home, effective tax rate, income tax per month, PF and professional tax deductions, HRA exemption (old regime), and — crucially — how much you save or lose by being in your chosen regime vs the other one.
Steps to use the In-Hand Salary Calculator: Enter your CTC and salary structure, Add rent paid and your state, Choose your tax regime, See your full breakdown.
Employer PF = 12% of basic salary (basic capped at ₹15,000/month). Gratuity = 4.81% of basic. Both are part of CTC but never reach your account, so they are subtracted first to get gross salary — the base for all further calculations.
Example: ₹8,00,000 − ₹21,600 (employer PF) − ₹15,392 (gratuity) = ₹7,63,008 gross
The exemption is the smallest of three values: the HRA you actually receive, 50% of basic (metro) or 40% (non-metro), and annual rent paid minus 10% of basic salary. All three calculations must be positive. Under the new regime, HRA exemption does not apply at all.
Example: Basic ₹3.2L, HRA ₹1.6L, metro, rent ₹12K/mo: min(₹1.6L, ₹1.6L, ₹1.12L) = ₹1.12L
Income tax is computed on taxable income (gross + bonus − standard deduction − exemptions − deductions), then Section 87A rebate is applied, then 4% cess is added. Employee PF is 12% of capped basic. Professional tax is state-specific.
Example: ₹7,63,008 − ₹0 (tax, new regime 87A rebate) − ₹21,600 (employee PF) − ₹2,500 (prof. tax) = ₹7,38,908 ≈ ₹61,576/month
Currency note: the example below uses a benchmark scenario priced in Indian Rupee (INR). Values are converted to US Dollar (USD) at the latest exchange rate so you can compare against your own numbers.
Scenario
An employee with $800,000.00 annual CTC in Maharashtra, 40% basic, new tax regime, no rent, no bonus.
$800,000.00 × 40% = $320,000.00 annual basic salary.
Basic = $320,000.00 per year
Employer PF = 12% × $320,000.00 = $21,600.00. Gratuity = 4.81% × $320,000.00 = $15,392.00.
Total employer deductions = $21,600.00 + $15,392.00
$800,000.00 − $21,600.00 (employer PF) − $15,392.00 (gratuity) = $763,008.00.
Gross Salary = $763,008.00
$763,008.00 − $75,000.00 (standard deduction) − $2,500.00 (professional tax) = $685,508.00 taxable income.
Taxable Income = $685,508.00
Taxable income $685,508.00 is below the rebate threshold of 12,00,000. Tax on slabs = approx 14,275. Full 87A rebate applied. Income tax = $0.00.
Income Tax = $0.00
$763,008.00 − $0.00 (income tax) − $21,600.00 (employee PF) − $2,500.00 (professional tax) = $738,908.00.
Annual Take-Home = $738,908.00
$738,908.00 ÷ 12 = $61,576.00 per month.
Monthly Take-Home = $61,576.00
The takeaway
On an $800,000.00 CTC, your actual monthly take-home is $61,576.00 — about 92% of gross salary, thanks to the 87A rebate eliminating income tax. The gap from CTC is mainly employer PF and gratuity that never hits your account.
| Metric | Poor | Average | Good | Excellent |
|---|---|---|---|---|
CTC ₹5L–₹8L ClearTax Salary Research 2025 | < 75% | 75–82% | 82–86% | 86–88% take-home |
CTC ₹8L–₹12L ClearTax Salary Research 2025 | < 72% | 72–78% | 78–82% | 82–84% take-home |
CTC ₹12L–₹20L ClearTax Salary Research 2025 | < 65% | 65–72% | 72–76% | 76–78% take-home |
CTC ₹20L+ ClearTax Salary Research 2025 | < 60% | 60–65% | 65–70% | 70–72% take-home |
| Feature | Calcrux (Free) | ClearTax | Groww |
|---|---|---|---|
| Old vs new regime comparison | |||
| HRA exemption calculator | |||
| PF contribution breakdown | |||
| Professional tax by state | |||
| Regime savings vs alternative | |||
| Free to use |
Why it matters
CTC includes employer PF (12% of basic) and gratuity (4.81% of basic) — money your employer sets aside but never directly deposits into your account.
Fix
Always subtract employer PF and gratuity from CTC to get gross salary first, then apply taxes and deductions.
Why it matters
When you see ₹10L CTC, up to ₹21,600 is employer PF and ₹19,240 is gratuity. That is nearly ₹41,000 per year that won't appear on your payslip as take-home.
Fix
When negotiating or comparing offers, ask for gross salary in addition to CTC — it is a much more meaningful number.
Why it matters
Your optimal regime can change year to year as your salary, investments, and rent situation changes. Many people stick to the old regime out of habit even when the new one would save them more.
Fix
Run both scenarios in this calculator each April before informing your employer of your regime choice for the financial year.
Why it matters
If you pay rent and choose the old regime, you may be able to exclude a significant amount of your HRA from tax. But HRA exemption requires an active claim — it is not applied automatically.
Fix
Submit rent receipts and landlord PAN (for rent above ₹1 lakh per year) to your employer before the payroll cutoff to get the exemption applied via TDS.
Why it matters
Professional tax is small but real — Maharashtra deducts ₹2,500 per year. If your calculator does not account for your state, the take-home will be overstated.
Fix
Select your actual state when using this calculator. If you have moved states mid-year, check with your HR about how professional tax is handled.
Why it matters
Gratuity is paid as a lump sum after 5 years of service (or on exit). It is part of your CTC computation but does not affect monthly take-home — yet many people miscount it.
Fix
Treat gratuity as deferred compensation, not monthly income. It is included in CTC but correctly excluded from gross salary and monthly take-home calculations.
The new regime is default, but you can switch each year. The cut-off is when you inform your employer at the start of the financial year (April). Run both scenarios here first — the difference can be ₹20,000–₹60,000 per year depending on your deductions.
If you choose the old regime and pay rent, make sure you claim the full HRA exemption. Ensure your rent agreement and receipts are in order. For rent above ₹1 lakh annually, your landlord's PAN is mandatory. Living in a metro city gives you 50% basic as the HRA cap versus 40% elsewhere.
The ₹1.5 lakh 80C limit often goes underutilised. Your employee PF already counts toward it, but the rest can be filled with PPF, ELSS mutual funds, life insurance, or home loan principal. ELSS also offers the shortest lock-in (3 years) among 80C options.
If you have relocated, confirm that your employer is deducting professional tax for your new state — not the old one. Over-deduction of professional tax requires a refund claim, which can take time.
In the old regime, National Pension System (NPS) contributions under Section 80CCD(1B) give an additional ₹50,000 deduction over and above the ₹1.5 lakh 80C limit. At a 30% slab, that is ₹15,000 saved per year — plus long-term retirement corpus growth.
The In-Hand Salary Calculator works across every stage of the workflow.
Comparing a ₹14L offer at one company against an ₹18L offer at another. After accounting for different CTC structures, tax regimes, and PF treatment, the actual take-home difference may be much smaller (or larger) than the headline numbers suggest.
Just started working and confused why the bank credited amount is so different from the CTC promised. Using this calculator to trace every deduction — employer PF, employee PF, professional tax, TDS — and understand the payslip line by line.
Quickly estimating an employee's net pay during salary negotiation, verifying the right regime choice, or confirming HRA exemption before payroll is processed — without opening a spreadsheet.
Building a client's cash-flow plan and need the net take-home amount as a starting point for budgeting, SIP investment planning, and EMI affordability analysis.
Evaluating a job offer in Chennai vs Pune and wanting to see how the HRA exemption difference (metro 50% vs non-metro 40%) and professional tax rate affect the actual take-home before accepting the offer.
Every important term you'll encounter in this calculator and the broader topic.
Everything you need to know about how the In-Hand Salary Calculator works.
CTC is everything the employer spends — basic salary, allowances, employer PF (12% of basic), and gratuity. In-hand is what reaches your account after income tax, PF, and professional tax are deducted. A 10 lakh CTC typically yields 7–8.5 lakh take-home depending on regime and deductions.
The new regime has lower slab rates but no exemptions. The old regime lets you claim HRA, 80C (up to ₹1.5L), 80D, and more. If total deductions exceed ₹3–4 lakh, old regime often wins. For fewer deductions or simplicity, new regime is usually better. Compare both here instantly.
HRA exemption (old regime only) is the minimum of: (1) Actual HRA received, (2) 50% of basic for metro / 40% for non-metro, and (3) Annual rent paid minus 10% of basic. All three must be positive for any exemption to apply. Under the new regime, HRA exemption is not available at all.
Section 87A is a tax rebate that can cut your bill to zero. New regime (FY 2025-26): taxable income up to ₹12 lakh gets a full rebate (up to ₹60,000). Old regime: up to ₹12,500 rebate for income up to ₹5 lakh. Cess applies on tax remaining after the rebate.
PF is calculated on basic salary, not CTC. EPFO also caps the contribution base at ₹15,000 per month, so even a ₹40,000 basic gives only ₹1,800/month PF (12% × ₹15,000). Some employers opt for higher PF on actual basic — check your payslip to confirm which applies to you.
Standard deduction is a flat deduction from gross salary — no receipts needed. For FY 2025-26: ₹75,000 (new regime) and ₹50,000 (old regime). Every salaried employee and pensioner gets it automatically. It replaced the earlier transport allowance and medical reimbursement exemptions.
Professional tax is a state-level tax on salaried employees — not all states levy it. Delhi, UP, and Haryana have none. Maharashtra charges ₹2,500/year; Karnataka, Tamil Nadu, and West Bengal charge ₹2,400/year. It is deducted by employers and is deductible from gross salary in both tax regimes.
Yes. This calculator uses the tax slabs and rules announced in Budget 2025 and effective for Assessment Year 2026-27 (Financial Year 2025-26). The new regime slabs, the ₹75,000 standard deduction, the ₹12 lakh rebate threshold, and the 4% cess are all current for FY 2025-26.
Four levers: (1) Pick the cheaper regime — run both here. (2) Old regime: max out 80C (₹1.5L), 80D, and submit rent receipts for HRA. (3) Ask HR to restructure your CTC with more HRA vs basic. (4) Add NPS — Section 80CCD(1B) gives ₹50,000 extra deduction beyond 80C.
This tool covers standard salaried income only. It does not handle: surcharge (income above ₹50 lakh), AMT, capital gains, house property income, perquisites (ESOPs, company car), or senior/super-senior citizen slabs. For complex situations, consult a chartered accountant.
Keep exploring
Old vs new regime: apply deductions, compare tax bills, save more — FY 2025-26.
Exact HRA exemption with a full 3-rule breakdown — free for FY 2025-26.
Project your EPF corpus, interest earned, and EPS pension at retirement.
Section 44ADA tax, advance tax, GST estimate and audit check — free.
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