CTC to In-Hand Salary Calculator
Estimate your monthly in-hand take-home salary from your annual Cost to Company (CTC) after PF, Professional Tax, and Income Tax deductions.
Your total annual CTC package.
Variable performance bonus which is not paid in monthly cycles.
Deductions for Old Regime comparison like LIC, PPF, Home Loan principal, HRA, health insurance.
New Tax Regime Salary Cost Breakdown
Regime Payout Comparison
| Salary Components | New Tax Regime | Old Tax Regime |
|---|---|---|
| Basic Salary (50%) | ₹45,000 | ₹45,000 |
| House Rent Allowance (HRA) | ₹22,500 | ₹22,500 |
| Other Allowances & Perks | ₹17,100 | ₹17,100 |
| Variable Pay / Bonus | ₹10,000 | ₹10,000 |
| Provident Fund (PF Employee) | - ₹5,400 | - ₹5,400 |
| Professional Tax (PT) | - ₹200 | - ₹200 |
| Income Tax Deducted | - ₹0 | - ₹5,424 |
| Net Take-Home Salary | ₹79,000 | ₹73,576 |
Salary CTC Calculation Rules
New Regime calculation applies standard deduction of ₹75,000 for FY 2025-26. Old Regime comparison automatically adds your employee PF contributions to saving section 80C along with your custom entered tax-saving deductions.Grow Your Business Online
Why Your CTC and In-Hand Salary Differ
| Component | Appears in CTC | Hits Bank Account |
|---|---|---|
| Basic Salary | Yes | Yes (taxable) |
| HRA | Yes | Yes (partly exempt) |
| Special Allowance | Yes | Yes (taxable) |
| Employee PF (12%) | Yes | NO — goes to PF account |
| Employer PF (12%) | Yes | NO — employer pays separately |
| Gratuity (4.81%) | Yes | NO — paid after 5 years service |
| Medical Insurance | Yes | NO — paid as insurance premium |
| Income Tax (TDS) | NO | Deducted from your salary |
Typical CTC Structure by Salary Level
| Annual CTC | Approx Monthly In-Hand |
|---|---|
| Rs 3L | Rs 22,000-24,000 |
| Rs 5L | Rs 36,000-39,000 |
| Rs 8L | Rs 56,000-60,000 |
| Rs 10L | Rs 68,000-73,000 |
| Rs 12L | Rs 80,000-85,000 |
| Rs 15L | Rs 98,000-1,05,000 |
| Rs 20L | Rs 1,25,000-1,35,000 |
(New regime assumed, standard deductions only)
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Frequently Asked Questions
What is CTC (Cost to Company)?
CTC represents the total amount of money an employer spends on hiring and maintaining an employee for a year. It includes direct salary components (basic, HRA, allowances), indirect benefits (meals, cabs, medical insurance), and statutory contributions (Employer's EPF, Gratuity).
Why is in-hand salary lower than CTC?
In-hand salary is lower than CTC because CTC contains components like employer contributions to PF, insurance premiums, gratuity, and variable performance payouts that are not paid monthly. Additionally, standard taxes (Income Tax/TDS and Professional Tax) are deducted before you receive cash.
How is Basic Salary calculated?
In standard Indian salary structures, Basic Salary is usually set at 40% to 50% of the fixed portion of CTC. HRA is then calculated as 40% (non-metro) or 50% (metro cities) of the Basic Salary. The rest of the CTC is distributed among other allowances (LTA, special, medical, etc.).
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