Break down your annual CTC into components and calculate monthly in-hand salary in India.
₹
Monthly In-Hand
₹99,576
Annual in-hand: ₹11,94,912
CTC Components
Basic₹6,00,000
HRA₹3,00,000
Special Allowance₹4,99,140
Employer PF (12% of basic)₹72,000
Gratuity (4.81% of basic)₹28,860
Annual Deductions
Employee PF (12% of basic)₹72,000
Income Tax (new regime)₹1,29,828
Professional Tax₹2,400
Total Deductions₹2,04,228
This calculator breaks down your CTC into salary components (Basic, HRA, Special Allowance, Employer PF, Gratuity) and deductions (Employee PF at 12% of basic, Income Tax under new regime, and Professional Tax at ₹2400/year). The result shows your monthly in-hand salary. Note: Tax brackets and rates are based on FY 2024–25. Actual deductions may vary based on location, state tax, and other factors.
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What is the Salary Calculator (CTC to In-Hand)?
A salary calculator is a tool that breaks down your CTC (the total annual cost your employer pays) into gross salary, taxable income, income tax payable, Employee Provident Fund (EPF), professional tax, and net in-hand salary. It accounts for standard deductions (Section 80C), basic exemption limits, and slab-based income tax to show you exactly how much money hits your bank account each month.
How it works
The calculator starts with your CTC and separates it into allowances (basic, HRA, DA, special) and deductions (EPF, gratuity fund, health insurance). It then calculates income tax based on your total income minus eligible deductions, applies slab rates for your financial year, and adds Professional Tax where applicable. The result is your gross monthly salary minus all statutory and optional deductions, giving you the in-hand amount.
In-Hand Salary = (CTC ÷ 12) − (Income Tax + EPF Contribution + Professional Tax + Other Deductions)
CTC is divided by 12 for monthly calculation. Income tax is calculated on taxable income (after Section 80C deduction of up to ₹1.5 lakh). EPF is typically 12% of basic salary. Professional Tax varies by state (₹0–₹2,500 annually).
Examples
Input
Result
Notes
CTC ₹12 lakh/year, basic ₹50,000, HRA ₹15,000, DA ₹10,000, other allowances ₹5,000
Monthly in-hand ≈ ₹79,000–82,000 (exact figure depends on state tax, insurance, and deductions)
A 12 LPA package with ₹80k basic typically nets ₹79–82k/month after 12% EPF (₹6,000), income tax (~₹6,000), and state professional tax.
CTC ₹25 lakh/year, basic ₹1,00,000, HRA ₹40,000, DA ₹20,000, other allowances ₹25,000
Monthly in-hand ≈ ₹1,58,000–1,62,000
A 25 LPA package nets roughly ₹1,59k/month after higher tax slab (~₹15,500), EPF (₹12,000), and professional tax (₹166/month in most states).
CTC ₹6 lakh/year, basic ₹25,000, HRA ₹5,000, DA ₹2,500, other allowances ₹2,500
Monthly in-hand ≈ ₹40,500–41,500
A 6 LPA entry-level role nets ≈₹41k/month; EPF is ₹3,000, income tax is minimal (~₹500), professional tax is negligible.
How to use the Salary Calculator (CTC to In-Hand)
Enter your annual CTC (Cost to Company) from your salary slip or offer letter.
Break down your CTC into components: basic salary, HRA, dearness allowance (DA), special allowance, and any other allowances.
Enter any additional deductions (health insurance premium, loan EMI recovered by employer, voluntary PF, etc.).
Select your state (affects professional tax slab) and applicable financial year.
The calculator applies standard EPF (12% of basic), income tax slabs (0%, 5%, 20%, 30%), and Section 80C deductions (max ₹1.5 lakh).
View your monthly and annual in-hand salary, with a detailed breakdown of all deductions.
Benefits
Know your exact monthly budget—stop guessing what you'll actually receive.
Compare salary offers side-by-side by seeing true in-hand pay, not just CTC.
Plan tax-efficient investments: maximise Section 80C deductions (EPF, insurance, ELSS) to reduce take-home tax.
Identify over-deductions: if PF or insurance is being double-deducted, catch it early.
Understand HRA claims: enter HRA correctly to see how it affects your taxable income.
State-specific accuracy: professional tax and other regional deductions are factored in automatically.
Tips & common mistakes
Common mistakes
Assuming CTC = in-hand salary: CTC is what your employer spends; in-hand is what you receive. A ₹12 LPA package nets only ₹9.5–10 lakh/year.
Forgetting Section 80C deductions: EPF contributions, insurance premiums, and ELSS reduce your taxable income, lowering tax. Missing this overstates your tax liability.
Mixing up HRA and rent paid: HRA is a taxable allowance; you only get tax relief if you pay rent and file proof. If you don't pay rent, HRA is fully taxable.
Not accounting for state professional tax: varies from ₹0 (Delhi) to ₹2,500/year (Maharashtra); ignoring this makes your in-hand estimate ₹100–200 off per month.
Tips
Use take-home salary for budget planning, not CTC. If you earn ₹12 LPA, budget for ₹9.5–10 lakh/year, not ₹12 lakh.
If your employer offers flexible benefits, prioritise EPF and life insurance to max out Section 80C (₹1.5 lakh/year) and reduce taxable income.
Compare job offers by in-hand salary and benefits package (health, leave, growth) rather than headline CTC alone.
Check your pay slip every month: if deductions look wrong (double PF, missing HRA exemption), raise it with HR immediately to recover overcharged tax.
Frequently asked questions
What is the difference between CTC and in-hand salary?
CTC (Cost to Company) is the total annual cost your employer bears, including salary, allowances, bonuses, insurance, and employer PF contribution. In-hand salary is the net amount deposited into your bank account after deducting income tax, employee PF, professional tax, and other withholdings. Typically, in-hand is 70–85% of CTC.
Does EPF reduce my take-home salary?
Yes. 12% of your basic salary goes into your EPF account monthly. This amount is deducted from your paycheck, so higher EPF means lower in-hand salary. However, EPF is a long-term savings vehicle and earns interest (~8.15%/year), so it grows until retirement.
How is income tax calculated?
Income tax is calculated on your taxable income (annual gross salary minus eligible deductions like ₹1.5 lakh Section 80C limit). Tax is applied in slabs: no tax up to ₹2.5 lakh (FY 2024–25), 5% from ₹2.5–5 lakh, 20% from ₹5–10 lakh, and 30% above ₹10 lakh. Higher earners also pay a 4% cess on total income tax.
Can I reduce my take-home tax?
Yes, through eligible deductions: maximise EPF (12% of basic auto-deducted), contribute to ELSS funds or insurance within ₹1.5 lakh Section 80C limit, claim ₹50,000 deduction for health insurance (Section 80D), and ₹2,000 for NPS (Section 80CCD). These reduce your taxable income and lower income tax.
What is HRA and how does it affect my salary?
HRA (House Rent Allowance) is an allowance given to cover rent. It is taxable if you don't pay rent; if you do, you can claim tax exemption on the lower of: HRA given, 50% of basic (metro) or 40% (non-metro), or rent paid minus 10% of basic. Keep rent receipts to claim this benefit.
Do bonuses and incentives affect my in-hand salary?
Yes. Variable pay (annual bonus, performance incentive, commission) is added to your annual gross income and increases your taxable income. A higher bonus pushes you into a higher tax slab, so your net gain is less than the gross bonus amount. Always factor this into your tax planning.