Assumes Basic = 40% of CTC, 12% employer + employee PF, ~₹2,400/year professional tax, and the New Tax Regime. Actual salary structures vary by employer — treat this as a rough estimate.
What is a salary calculator, and who needs it?
A job offer usually quotes your CTC (cost to company), but the money you actually receive each month is lower. This calculator converts an annual CTC into an estimated monthly in-hand salary. It also shows your basic pay, your PF contribution, the income tax for the year and your yearly in-hand income.
It helps freshers understand their first offer letter, professionals comparing two job offers, and anyone negotiating a hike who wants to see what a higher CTC really means for take-home pay. To look at the tax step in more detail, use our Income Tax Calculator.
Formula used
- Basic salary = 40% of CTC
- Employer PF = Employee PF = 12% of basic salary
- Gross salary = CTC − Employer PF
- Taxable income = Gross salary − ₹75,000 standard deduction, taxed at the new-regime slabs of FY 2024-25 plus 4% cess (nil if taxable income is ₹7,00,000 or less)
- Annual in-hand = Gross salary − Employee PF − ₹2,400 professional tax − Income tax
- Monthly in-hand = Annual in-hand ÷ 12
Worked example
Take a CTC of ₹12,00,000. Basic salary = ₹4,80,000, and both the employer and employee PF are 12% of that, or ₹57,600 each. Gross salary = 12,00,000 − 57,600 = ₹11,42,400. Taxable income = 11,42,400 − 75,000 = ₹10,67,400. Slab tax = ₹20,000 + ₹30,000 + 15% of ₹67,400 (₹10,110) = ₹60,110, and with 4% cess the tax is about ₹62,514.
Annual in-hand = 11,42,400 − 57,600 − 2,400 − 62,514 = ₹10,19,886, which is about ₹84,990 a month. For a lower CTC of ₹6,00,000, basic is ₹2,40,000, PF is ₹28,800 and gross salary is ₹5,71,200. Taxable income of ₹4,96,200 is below ₹7,00,000, so tax is nil. In-hand = 5,71,200 − 28,800 − 2,400 = ₹5,40,000, or ₹45,000 a month.
Frequently asked questions
What is the difference between CTC and in-hand salary?
CTC is the total yearly cost of employing you. It includes the employer's PF and often other items such as gratuity, insurance and bonus. In-hand salary is the amount that reaches your bank account after PF, professional tax and income tax are deducted, so it is always lower than CTC divided by 12.
Why is my actual salary different from this estimate?
Employers set their own salary structure. Your basic pay may not be 40% of CTC, PF may be calculated on a capped wage, and variable pay, gratuity and insurance are treated differently. Check your offer letter or latest payslip for the real breakup.
Does the calculator include variable pay or a joining bonus?
No. It treats your entire CTC as fixed pay. If part of your CTC is variable pay or a one-time bonus, enter only the fixed portion to get a closer monthly figure.
Is the PF deduction lost money?
No. Your PF contribution and your employer's share go into your EPF account, where they earn interest. You can usually withdraw the balance only under EPFO rules, so treat it as long-term savings rather than a cost.
Which tax regime does this calculator assume?
It uses India's new tax regime with the slabs of FY 2024-25, a ₹75,000 standard deduction and 4% cess. It does not include old-regime deductions such as HRA or Section 80C. Check the current year's rates before relying on the result.
Limitations and accuracy
This is a rough estimate built on fixed assumptions. It uses the FY 2024-25 tax slabs, which have been revised in later budgets, so confirm the current year's rates before relying on a figure. It assumes PF on the full basic salary, a flat professional tax of ₹2,400 a year (some states charge less or none), and a tax rebate cut-off without marginal relief. It leaves out HRA, reimbursements, gratuity, insurance, variable pay and any old-regime deductions. Your payslip and employer's payroll team have the exact numbers. This tool is for information only and is not tax or financial advice.