Turn your CTC into your real monthly take-home pay. See a full breakdown of basic pay, allowances, PF, professional tax, and all deductions.
CTC includes costs that never reach your bank account, like the employer's PF share and gratuity. These are removed first to get your gross salary.
Your own deductions are then subtracted — your PF, professional tax, and income tax.
What is left is your monthly in-hand salary.
Gross salary: CTC − employer PF − gratuity
Net (in-hand): Gross − employee PF − professional tax − income tax
Employee PF: 12% of basic pay (subject to statutory limits)
An offer letter usually quotes CTC, the total yearly cost of employing you. What reaches your bank each month is much smaller. This calculator breaks CTC into basic pay, HRA, special allowance, employer PF and gratuity, then subtracts your own PF, professional tax and income tax under the regime you choose, to give an estimate of monthly in-hand salary.
It is especially useful when comparing job offers, negotiating a salary structure or planning a budget for a new job in a new city. A fresher offered ₹9 lakh CTC in Hyderabad wants to know what her real monthly salary will be. The calculator shows where each part of the CTC goes and answers: how much will I actually take home?
1. Basic = CTC × basic %. HRA = basic × HRA %.
2. Employer PF = basic × PF rate. Gratuity provision = basic × 15 ÷ 26 ÷ 12, about 4.81% of basic.
3. Special allowance = CTC − basic − HRA − employer PF − gratuity − any employer NPS.
4. Gross salary = CTC − employer PF − gratuity − employer NPS, which equals basic + HRA + special allowance.
5. Subtract employee PF (basic × PF rate) and professional tax (monthly amount × 12).
6. Work out income tax on gross salary under the chosen regime, and subtract it.
7. Take-home = gross − employee PF − professional tax − income tax. Divide by 12 for the monthly figure.
CTC counts every rupee the employer spends on you, including money that goes into long-term benefits rather than your salary account. Employer PF is deposited in your EPF account. Gratuity is set aside for a lump sum paid when you leave after enough years. Both are real value, but you cannot spend them monthly. Gross salary removes these, leaving only the parts paid to you each month: basic, HRA and the special allowance that balances the structure.
Most components depend on basic pay. HRA is a percentage of basic, PF is 12% of basic, and the gratuity provision is about 4.81% of basic. A higher basic share means more goes into PF and gratuity, which lowers monthly take-home but raises long-term savings. A lower basic share means more special allowance and more cash now. The calculator applies PF to the full basic, as many employers do; some limit it to the statutory wage ceiling instead.
Under the new regime the calculator taxes gross salary after the standard deduction, with no HRA or 80C relief. Under the old regime it first removes the exempt part of HRA based on your rent and city, then allows 80C, where your own PF counts within the ₹1,50,000 cap. For many salaries below the new regime's rebate limit, tax after rebate is zero, so take-home is just gross minus PF and professional tax.
Divya has an offer of ₹9,00,000 CTC in Hyderabad. The structure sets basic at 50% of CTC and HRA at 40% of basic, with 12% PF and professional tax of ₹200 a month, and she plans to use the new regime.
Annual CTC: ₹9,00,000
Basic: 50% of CTC
HRA: 40% of basic
PF rate: 12%
Professional tax: ₹200 a month
Tax regime: New
Basic = 9,00,000 × 50% = ₹4,50,000. HRA = 4,50,000 × 40% = ₹1,80,000.
Employer PF = 4,50,000 × 12% = ₹54,000. Gratuity provision = 4,50,000 × 15 ÷ 26 ÷ 12 = ₹21,635 (rounded).
Special allowance = 9,00,000 − 4,50,000 − 1,80,000 − 54,000 − 21,635 = ₹1,94,365 (rounded).
Gross salary = 9,00,000 − 54,000 − 21,635 = ₹8,24,365 (rounded).
Deductions = employee PF ₹54,000 + professional tax ₹2,400 = ₹56,400.
New regime taxable income = 8,24,365 − 75,000 = ₹7,49,365, which is within the ₹12,00,000 rebate limit, so income tax = ₹0.
Take-home = 8,24,365 − 56,400 − 0 = ₹7,67,965 a year, or ₹63,997 a month.
Answer: Estimated in-hand salary of about ₹63,997 a month (₹7,67,965 a year).
Dividing CTC by 12 and treating that as monthly salary.
Forgetting that employer PF and gratuity are inside CTC, not extra.
Claiming HRA exemption while choosing the new regime.
Ignoring variable pay or bonus that is included in CTC but paid only if targets are met.
Assuming the same professional tax in every state; some states do not levy it.
Comparing two job offers with different salary structures.
Planning a monthly budget before joining a new job.
Deciding between the old and new regime at declaration time.
Negotiating a structure with a different basic share.
Why is my in-hand salary so much lower than my CTC?
CTC is the total cost to your company, and it includes things that never reach you — like the employer's PF share, gratuity, and sometimes insurance. On top of that, your own PF, professional tax, and income tax are also taken out.
What is professional tax?
A small tax on your salary charged by your state government. It is different in each state and is capped at ₹2,500 per year. Some states do not charge it at all.
Is this exact?
No, this is only an estimate. Every company sets up CTC differently, and allowances and extra pay can vary a lot. Check your own offer letter or payslip for the exact numbers.