CTC to in-hand calculator
Enter your offer-letter CTC and we'll strip out employer PF, gratuity, and insurance to find your real gross before computing tax and in-hand — or switch to gross mode if you already know your taxable gross.
Reviewed July 2026 · FY 2026–27 (AY 2027–28) tax slabs in engine · Methodology
Output is a modeled estimate from FY slabs + PF rules in code — not your employer's payroll system. Ambiguous inputs are blocked with an explicit message (see accuracy card).
Required inputs
- Annual CTC (₹)
- Employer PF, gratuity, insurance (annual, ₹) — optional but recommended for an accurate gross
- Tax regime
- Annual professional tax (₹)
- Either employee PF (annual) OR Basic+DA (annual) for PF — not both
Assumptions used by this estimate
- Tax computed using Financial Year 2026-27 (AY 2027-28) slab settings in code (standard deduction new ₹75,000, old ₹50,000 for other flows).
- PF: if you omit employee PF, we can derive it from monthly Basic+DA = (Basic+DA annual ÷ 12) using the configured statutory ceiling model.
- Monthly in-hand spreads annual tax evenly — not identical to monthly payslip TDS in all cases.
Worked example (same engine as live calculator)
Engine snapshot: gross ₹18,00,000/year, new regime, PT ₹2,500/year, Basic+DA ₹9,00,000/year (PF derived). Estimated monthly in-hand ₹1,35,425. Cross-check by entering annual PF from payslips instead of Basic+DA.
FAQ
Why can't I enter PF and Basic+DA together?
The engine needs a single PF source to avoid double-counting. Use payslip PF if you have it; otherwise use Basic+DA to derive PF under configured assumptions.
Does this include employer PF or gratuity accrual?
In 'I know my CTC' mode, yes — employer PF, gratuity, and insurance you enter are subtracted from CTC before computing gross and in-hand, so they reduce your gross rather than count as spendable cash. In 'I know my gross salary' mode, you're entering the post-employer-cost figure directly, so there's nothing left to subtract.
Related guides
Spotted a wrong number or confusing label? Report a calculation error — every report gets checked against the engine.
CTC, gross salary, and in-hand: what each term actually means
CTC (Cost to Company)is everything your employer spends on your employment: your gross salary, the employer's share of provident fund, gratuity accrual, and insurance premiums. It is a cost figure for the company, not an income figure for you.
Gross salaryis CTC minus employer contributions. This is the taxable earnings base your income-tax liability is computed on. It is what HR uses when they say "your salary is ₹12 LPA" — but it is still not what lands in your account.
Net / in-hand / take-home is gross minus four statutory deductions: income tax (TDS), employee share of provident fund (PF), professional tax, and — for some employees — ESI. This is the number that matters for budgeting.
The four deductions that shrink your gross salary▾
- Income tax (TDS): Your employer deducts tax at source monthly, spreading the annual liability across 12 instalments. The amount depends on your declared regime (old or new), investment proofs you submit, and HRA claims. This is often the largest single deduction above ₹7 LPA.
- Employee PF (provident fund): Mandatory at 12% of your PF wage (which is Basic+DA or ₹15,000 ceiling, whichever your employer uses). On a ₹12 LPA gross with Basic at 50%, this is roughly ₹6,000/month.
- Professional tax: A state levy, typically ₹200–250/month in most states. Maharashtra levies up to ₹2,500/year. Some states do not levy PT at all (Delhi, Haryana).
- ESI (Employee State Insurance): Applicable only if gross salary is ₹21,000/month or below — 0.75% of gross. Above that threshold, ESI does not apply.
Why the old and new tax regime produce different in-hand amounts▾
Under the new tax regime (default from FY 2024-25 onwards), the slabs are lower but most deductions are not available. Standard deduction is ₹75,000. No 80C, no HRA exemption, no home loan interest deduction.
Under the old tax regime, slabs are higher but you can claim 80C (up to ₹1.5 lakh), HRA exemption (if renting), home loan interest, and several other deductions. If your total deductions exceed roughly ₹4–5 lakh, the old regime often saves more tax.
For most employees earning below ₹12–15 LPA with no active investment claims, the new regime now typically produces a higher or equal in-hand figure. Above ₹20 LPA with aggressive 80C and HRA claims, the old regime often still wins.
Why your payslip may not match this calculator's output▾
This calculator computes an estimate from financial-year slabs and statutory rules. Your employer's payroll system may differ in three specific ways:
- PF wage definition: Some employers use a flat ₹15,000 wage ceiling for PF (lower deduction). Others use actual Basic+DA without capping (higher deduction). This single difference can change monthly in-hand by ₹1,000–3,000.
- TDS timing: Employers smooth TDS over the year but often recalibrate in Q3/Q4 after you submit investment declarations. January–March payslips may show higher deductions to recover under-withheld tax from earlier months.
- Variable pay: Bonus, performance pay, and quarterly components are usually excluded from the base monthly gross calculation.