CTC to In-Hand Salary Calculator
Turn an annual CTC into the monthly amount that actually reaches your bank account.
A ₹12,00,000 CTC is not ₹1,00,000 a month. Between the offer letter and your bank account sit employer PF, a gratuity provision, variable pay you may or may not receive, your own PF contribution, income tax and professional tax. This calculator applies each of those in order and shows the working as a payslip-style breakdown.
Your offer details
Result
Fill in the fields above and your result will appear here.
What the CTC to In-Hand Salary Calculator does
CTC — cost to company — is exactly what the name says: everything your employer spends on you in a year. Several of those costs are real money that never arrives as salary. The employer's 12% PF contribution goes into your EPF account. The gratuity provision, usually 4.81% of basic, is money set aside against a payment you only receive after five years of service. Variable pay is conditional on performance.
What is left is your gross salary. From that, your own PF contribution, income tax and professional tax are deducted to give the figure that is credited each month. The typical gap between CTC and annual in-hand in India is 25–35%, and this tool shows exactly where yours goes.
How to use this tool
- Enter your annual CTC. Shorthand works — type
12Lfor ₹12,00,000 or1.2crfor ₹1,20,00,000. - Set the variable share. If your offer says "₹12 LPA including ₹1.2L performance bonus", that is 10%.
- Set basic as a percentage of fixed pay. Your offer letter's salary annexure states it — 40–50% is typical.
- Choose how PF is calculated. Employers either apply 12% to the ₹15,000 statutory ceiling or to your full basic; the annexure will say which.
- Pick your tax regime. Under the old regime, add the deductions you actually expect to claim.
- Read the breakdown table to see each deduction, and the bars to see how your CTC splits between cash, retirement savings and tax.
Formula and method
Fixed CTC = CTC − Variable pay
Basic = Fixed CTC × Basic %
Employer PF = 12% of (Basic, capped at ₹15,000/month if the ceiling applies)
Gratuity prov. = 4.81% of Basic
Gross salary = Fixed CTC − Employer PF − Gratuity provision
Taxable income = Gross + Variable − Standard deduction − Other deductions
Income tax = Slab tax − 87A rebate + Surcharge + 4% cess
Monthly in-hand = (Gross − Your PF − Professional tax − Tax on fixed pay) ÷ 12
Income tax is apportioned between fixed and variable pay in the same ratio as the pay itself. Without that split, the monthly figure would be reduced by tax on a bonus that has not been paid yet.
The 4.81% gratuity factor comes from the statutory formula: 15 days' wages for each completed year, on a 26-day month, is 15 ÷ 26 ÷ 12 ≈ 4.81% of annual basic.
Worked example
Example: ₹12,00,000 CTC, 10% variable, 40% basic, PF on the ceiling
| Annual CTC | ₹12,00,000 |
| Variable pay (10%) | ₹1,20,000 |
| Fixed CTC | ₹10,80,000 |
| Basic (40% of fixed) | ₹4,32,000 |
| Employer PF (12% of ₹15,000 × 12) | ₹21,600 |
| Gratuity provision (4.81% of basic) | ₹20,779 |
| Gross salary | ₹10,37,621 |
Under the new regime, taxable income after the ₹75,000 standard deduction is about ₹10,82,621, giving tax of roughly ₹53,000 after cess. After the employee's own PF of ₹21,600 and professional tax of ₹2,400, the monthly credit lands near ₹79,000 — against the ₹1,00,000 a month that the CTC figure suggests.
What your result means
The monthly figure is what you can budget with — it excludes variable pay deliberately, because that arrives separately and often at a different rate of certainty.
The CTC-to-in-hand gap is the single most useful number for comparing offers. A 30% gap is normal; above 35% usually means either heavy variable pay or an unusually low basic. Below 25% often means PF is not being deducted, which is not always good news for your retirement corpus.
The bars separate money you receive, money saved on your behalf, and money paid in tax. Employer PF and your own PF are still yours — treat them as forced savings rather than a loss.
Important considerations
- HRA exemption can materially reduce tax under the old regime if you pay rent. This tool takes your total expected deductions as a single figure rather than computing HRA from rent and city, so calculate it separately and include it there.
- Employers structure salary differently: some include a car allowance, meal cards, LTA or a National Pension System contribution in CTC. Anything non-cash reduces in-hand further and should be treated like the gratuity provision.
- Professional tax is a state levy and does not apply everywhere. Maharashtra, Karnataka, West Bengal, Tamil Nadu and several others charge it; Delhi, Uttar Pradesh and Haryana do not.
- Tax deducted at source is spread across the year by your employer based on your declaration. Your actual monthly deduction will vary, particularly in the last quarter if you fail to submit investment proofs.
- If your CTC includes a joining bonus, it inflates the first year only. Compare offers on the recurring number, not the first-year total.
Limitations of this tool
- The tax calculation is a summary model: it applies slabs, the 87A rebate, surcharge and cess, but ignores capital gains, house-property income, clubbing provisions, relief under Section 89 and employer-specific perquisite valuation.
- Slabs are for FY 2026-27 as configured in the site's versioned tax data. Verify against incometax.gov.in before making a financial commitment.
- The result assumes your variable pay is paid in full. If your organisation typically pays 70% of target, re-run with a lower variable percentage.
- Employer contributions to NPS under 80CCD(2) and any employer superannuation are not modelled separately.
Frequently asked questions
Why is my in-hand lower than this calculator says?
The three usual reasons are a lower basic than you assumed, PF calculated on full basic rather than the ₹15,000 ceiling, and additional CTC components such as insurance premiums, meal cards or an NPS contribution. Compare the calculator's gross salary line with the gross on your payslip — if they differ, the structure assumptions need adjusting, not the tax.
Is ₹12 LPA a good salary in India?
That depends entirely on city, experience and role. What this tool can tell you is that a ₹12 LPA CTC with 10% variable typically credits around ₹78,000–₹82,000 a month. Use the salary vs cost of living calculator to see what that leaves after rent in a specific city.
Should I choose the new or old tax regime?
Run the calculation both ways. The new regime usually wins unless you have substantial deductions — typically a home loan interest claim, full 80C usage and a meaningful HRA exemption together. The salary after tax calculator compares the two side by side.
Does a higher basic salary help or hurt?
Both. A higher basic increases your PF contribution and gratuity entitlement, which reduces monthly in-hand but builds retirement savings and a larger eventual gratuity payout. A lower basic maximises immediate cash. Neither is universally better.
Is employer PF really part of my salary?
It is part of your CTC and it is your money — it sits in your EPF account and earns interest. It simply is not available as monthly cash. That is why this tool separates it rather than either ignoring it or counting it as take-home.