Salary Calculator (CTC to In-Hand)
The salary calculator converts your annual CTC into a monthly in-hand salary, breaking down employer PF, employee PF, professional tax and income tax for both the new and old regimes.
Last updated 2026-08-14
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quizExample
How this calculator works, with real numbers (no JavaScript needed):
Inputs
- Annual CTC
- 1200000
- Basic salary (% of CTC)
- 40
- Years of service
- 0
- Tax regime
- new
- Deductions (80C etc.)
- 150000
Results
- Monthly in-hand salary
- ₹96,200
- Annual in-hand salary
- ₹11,54,400
- Gross monthly salary
- ₹98,200
- Employee PF (monthly)
- ₹1,800
- Employer PF (monthly)
- ₹1,800
- Income tax (monthly)
- ₹0
- Professional tax (monthly)
- ₹200
- Gratuity accrual (annual)
- ₹0
functionsThe formula
CTC (Cost To Company) is the total your employer spends on you each year. It is not what lands in your bank. The gap between the two is explained by deductions that are part of your cost but not your take-home pay.
The journey from CTC to in-hand
- Basic + HRA + special allowance make up your salary structure. Basic is typically 40–50% of CTC — it matters because PF and gratuity are calculated on it.
- Employer PF — 12% of basic (up to the ₹15,000/month wage cap) is paid by your employer and goes to your provident fund, not your salary.
- Gratuity accrual — your employer sets aside ~4.81% of basic each year for your gratuity.
- Gross salary = CTC − employer PF − gratuity accrual.
- Employee deductions — your own 12% PF contribution, professional tax (about ₹200/month), and income tax.
- In-hand salary = gross − employee PF − professional tax − income tax.
Worked example
CTC = ₹12,00,000, basic = 40% (₹4,80,000), new regime:
- Employer PF ≈ ₹21,600/yr; gratuity accrual ≈ ₹0 (under 5 years)
- Gross annual ≈ ₹11,78,400 → gross monthly ≈ ₹98,200
- Income tax ≈ ₹0/yr — the 87A rebate makes taxable income under ₹12 lakh tax-free
- Employee PF ≈ ₹1,800/month; professional tax ≈ ₹200/month
- In-hand ≈ ₹96,200/month
Why your basic matters
A higher basic raises your PF and gratuity (good for long-term savings) but can push up tax. Your offer letter's salary breakup — especially the basic percentage — directly changes the numbers above. Some employers also deduct a special allowance or ESI (if your gross is under ₹21,000/month) which further reduces in-hand.
helpFrequently asked questions
question_markWhat is the difference between CTC and in-hand salary?
CTC is the total your employer spends on you, including your salary, employer PF, gratuity and other benefits. In-hand salary is what actually reaches your bank after all deductions.
question_markHow is in-hand salary calculated from CTC?
Start from CTC, subtract employer PF and gratuity accrual to get gross, then subtract employee PF, professional tax and income tax. Divide by 12 for the monthly figure.
question_markWhat percentage of basic is deducted for PF?
Both you and your employer contribute 12% of basic salary (capped at ₹15,000 monthly basic) to the Employees' Provident Fund.
question_markWhy is my in-hand lower than my offer letter says?
Offer letters usually quote CTC. Deductions like PF, professional tax and income tax are subtracted to arrive at take-home. Use this calculator with your actual CTC and breakup to verify.