Take-Home Salary Calculator

Salary

Understand what actually lands in your bank account each month by breaking your CTC down into EPF, income tax, professional tax and net in-hand pay.

In short: The Take-Home Salary Calculator is a free online tool that lets you convert your CTC into monthly in-hand salary after EPF and taxes — instantly, with charts, a worked example and the exact formula.

Your inputs

Monthly in-hand

₹79,112

Annual in-hand

₹9,49,340

Total deductions

₹2,50,660

EPF + tax + prof. tax + employer share

CTC composition

How your CTC splits between in-hand pay, EPF and taxes.

CTC to in-hand breakdown

CTC to in-hand breakdown
Component	Amount
Annual CTC	₹12,00,000
Basic (50% of CTC)	₹6,00,000
Employee EPF (12% of basic)	₹72,000
Employer EPF in CTC	₹72,000
Gratuity provision in CTC	₹28,860
Income tax (New regime)	₹75,400
Professional tax	₹2,400
Annual in-hand	₹9,49,340

Income tax uses the New regime. Professional tax assumed ₹2,400/year.

Formula

In-hand = CTC − Employer EPF & gratuity (if in CTC) − Employee EPF − Income tax − Professional tax

Basic: 40% or 50% of CTC
EPF: 12% of basic, from both employee and employer
Income tax: New-regime slab tax on CTC, incl. 4% cess

Step-by-step calculation

Worked with the default values.

1
Basic salary
50% × ₹12,00,000
= ₹6,00,000
2
Employee EPF
12% × ₹6,00,000
= ₹72,000
3
Income tax (New regime)
Slab tax on CTC incl. 4% cess
= ₹75,400
4
Annual in-hand
CTC − employer share − EPF − tax − prof. tax
= ₹9,49,340

How it works

Basic salary is taken as a share of CTC and drives the EPF and gratuity provisions.
Employee EPF, income tax and professional tax are deducted from your pay.
If the employer’s EPF and gratuity are bundled inside CTC, they reduce in-hand pay too.

Examples

₹12,00,000 CTC, basic 50%, employer PF in CTC

After EPF, tax and professional tax, monthly in-hand lands roughly in the ₹80,000s.

Understanding the Take-Home Salary Calculator

From CTC to what actually reaches you

Cost to company is the number recruiters lead with, but it is not what lands in your bank account. CTC bundles together your gross salary, the employer’s provident-fund and gratuity contributions, and sometimes perks that never reach you as cash. Dividing CTC by twelve overstates your monthly pay, often by a wide margin. This calculator unpacks the gap so you know your real in-hand.

The journey from CTC to net pay involves three kinds of subtraction: employer contributions that were counted inside CTC, your own statutory deductions, and taxes.

The deductions that shrink your pay

Start with basic salary, usually set at 40% or 50% of CTC. Basic drives two provident-fund contributions of 12% each — one from you, one from your employer — plus a gratuity provision of about 4.81% of basic.

Employee EPF (12% of basic) is deducted directly from your salary.
Employer EPF and gratuity, when bundled inside CTC, reduce your in-hand even though you never see them.
Income tax under the New regime applies slab rates and 4% cess on your taxable salary.
Professional tax, a small state levy capped at ₹2,500 a year, is deducted where applicable.

A higher basic quietly increases the PF and gratuity carved out of CTC, so it trims immediate cash while building a larger retirement corpus — a trade-off worth making deliberately.

Making the number work for you

Two employees on the same CTC can take home very different amounts depending on structure. Ask your employer whether their PF sits inside CTC or is paid on top — if it is on top, your in-hand is higher than a naive CTC split suggests.

Model both a 40% and 50% basic to see the in-hand versus corpus trade-off.
Compare your tax under the Old and New regimes before opting at the start of the year.
Remember bonuses and variable pay are spread evenly here, so actual months will vary.

Used this way, the calculator turns an opaque CTC into a clear picture of monthly cash flow — the number you should actually budget and negotiate around.

Pros

Reveals your true monthly in-hand instead of the misleadingly high CTC figure.
Separates employer contributions from your own deductions so you see where money goes.
Lets you model a higher basic to trade a little in-hand for a bigger retirement corpus.
Uses New-regime slabs, matching the default most salaried employees now fall under.
Helps you compare job offers on a like-for-like net-pay basis.

Cons

Works at the CTC level and does not itemise HRA, LTA or special allowances.
Models the New regime only, so Old-regime deduction planning is not reflected.
Spreads bonuses and variable pay evenly, hiding month-to-month variation.
Uses a representative professional-tax figure that may differ from your actual state.

Tips

1Ask for your salary structure in writing to confirm whether employer PF and gratuity sit inside CTC.
2Run both a 40% and 50% basic scenario to see the in-hand versus corpus trade-off.
3Compare your tax under Old and New regimes separately before choosing at the start of the year.
4Factor in one-off bonuses and joining incentives that this even-spread view smooths out.
5Maximise EPF and NPS contributions to cut taxable income while building long-term wealth.

Frequently asked questions

Everything you need to know about the Take-Home Salary Calculator.

Why is my in-hand lower than CTC ÷ 12?

CTC includes employer contributions (EPF, gratuity) and your own deductions (EPF, income tax, professional tax). All of these are removed before you receive your net salary.

Which tax regime does this use?

It applies the New regime, which uses lower slab rates with the ₹50,000 standard deduction. Deduction-based Old-regime planning is not modelled here.

Is professional tax the same everywhere?

No, it varies by state and is capped at ₹2,500/year. This calculator assumes ₹2,400/year as a representative figure. States like Delhi and Uttar Pradesh levy no professional tax at all.

How does the basic salary percentage affect my in-hand?

A higher basic (say 50% instead of 40% of CTC) increases both your EPF and gratuity provisions, which are deducted from CTC. So a higher basic can slightly reduce your immediate in-hand, but it builds a larger retirement corpus and gratuity.

Does this include HRA or other allowances?

The calculator works at the CTC level and does not break out HRA, LTA or special allowances separately. Under the New regime these allowances generally do not carry the exemptions they did in the Old regime, so the net tax impact is captured through slab tax on CTC.

Why is employer PF sometimes over and above CTC?

Some employers state CTC exclusive of their PF and gratuity contributions, adding them on top. When that is the case, those employer costs do not reduce your in-hand, so this calculator lets you toggle whether employer PF sits inside or outside CTC.

Is the ₹50,000 standard deduction applied?

The New regime allows a standard deduction (₹50,000 for FY 2024-25, raised to ₹75,000 in the latest budget) against salary income. The income-tax component here applies New-regime slabs inclusive of that deduction and 4% cess.

Should I choose the Old or New regime?

The New regime suits those with few deductions, while the Old regime rewards heavy 80C, HRA and home-loan-interest claims. Compare your total tax under both before opting; this calculator models the New regime only.

Does variable pay or bonus count in in-hand?

Bonuses and variable pay are usually part of CTC but paid periodically, not monthly. This calculator spreads the annual figure evenly, so a month you actually receive a bonus will show higher pay than the average shown here.

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