Salary Calculator 2026 – CTC to In Hand Salary Calculator India

CTC to In-Hand Salary Calculator 2026

Enter your details to get a complete monthly & annual salary breakup

Annual CTC (₹) *

Total Cost to Company from offer letter

Basic Salary % of CTC

40%

Typically 40–50% of CTC. Higher basic = more PF deduction.

HRA % of Basic

40%

50% Metro cities, 40% Non-Metro

Tax Regime

New regime default from FY 2024-25

Professional Tax (Monthly ₹)

Varies by state. Max ₹2,500/yr. Enter 0 if not applicable.

ESI Applicable?

Employee ESI = 0.75% of gross salary

Other Allowances (Annual ₹)

LTA, Special Allowance, Food Allowance etc.

City Type (for HRA)

Your Salary Breakup – Monthly & Annual

💰 EARNINGS

Basic Salary– /mo | –/yr

HRA– /mo | –/yr

Other Allowances– /mo | –/yr

Gross Salary– /mo | –/yr

📉 DEDUCTIONS (Monthly)

Employee PF (12% of Basic)–

ESI (0.75% of Gross)–

Professional Tax–

TDS / Income Tax (est.)–

Total Deductions–

💵 Monthly In-Hand Salary –

ANNUAL IN-HAND

–

TAKE-HOME %

–

EMPLOYER PF /mo

–

Disclaimer: This is an approximate calculation. Actual take-home may vary based on exact tax regime, investment declarations, and employer-specific salary structure. Consult a tax expert for precise computation.

Deduction Quick Reference

Component	Rate	Cap / Note
Employee PF	12% of Basic	Basic ≤ ₹15,000
Employer PF	12% of Basic	Part of CTC
ESI Employee	0.75% Gross	Gross ≤ ₹21,000
ESI Employer	3.25% Gross	Gross ≤ ₹21,000
Professional Tax	State-wise	Max ₹2,500/yr
Std. Deduction	₹50,000/yr	Both regimes
HRA Exemption	Min of 3 values	Old Regime only

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Understanding Your Salary Structure

Key components every salaried employee in India must know

CTC – Cost to Company

CTC is the total annual expense the employer incurs for you — including basic, allowances, employer's PF, and gratuity. It is NOT your take-home salary.

Gross Salary

CTC minus employer contributions (PF, gratuity). This is what appears on your payslip before employee deductions like TDS and professional tax.

In-Hand / Net Salary

The actual amount credited to your bank each month. Gross – Employee PF – ESI – Professional Tax – TDS = Your In-Hand Salary.

Tax Regime Impact

New Regime (default FY 2024-25+) has lower rates but no exemptions. Old Regime allows HRA, 80C, 80D — choose based on your total deductions.

📝 Complete Guide

Salary Calculator – Complete Guide 2026

Everything a salaried employee in India needs to know about CTC, in-hand salary, deductions, and smart tax planning

The Basics

What is a Salary Calculator and Why Do You Need One?

A salary calculator is a free online tool that converts your CTC (Cost to Company) into the actual monthly in-hand salary you receive. For most salaried employees in India, there is a significant difference between what the offer letter says and what actually hits your bank account — and understanding that gap is critical for financial planning, negotiating hikes, and filing your income tax return correctly.

When you use an in-hand salary calculator, you get a complete picture of your salary breakup — showing every earned component and every deduction clearly. This includes Basic Salary, House Rent Allowance (HRA), Employee Provident Fund (EPF), ESI, Professional Tax, and TDS. Every salaried professional needs this clarity before accepting a new job offer, planning their annual investments, or comparing two job packages.

Whether you received a new offer letter and want to know your take-home salary, or you are optimising tax-saving investments under 80C to increase your monthly cash flow, a salary calculator India is the single most useful financial tool available to you.

              
              Quick Fact: For a typical ₹6 LPA CTC, the monthly in-hand salary is usually ₹38,000 to ₹43,000 — depending on salary structure, tax regime, and city. Use our free CTC to in-hand salary calculator above for your exact personalised figure.
            

Sample Calculation

₹6 LPA

CTC Breakdown Example

Gross Monthly₹45,000

PF Deduction– ₹2,160

TDS (est.)– ₹1,500

In-Hand Monthly₹40,840

Core Concepts

CTC vs Gross Salary vs Net Salary – The Key Difference

One of the most common sources of confusion for salaried employees in India is the difference between CTC, Gross Salary, and Net (In-Hand) Salary. These three terms describe three completely different numbers. Mixing them up leads to poor financial decisions and unpleasant surprises on the first payday. Our gross salary calculator and net salary calculator both compute these distinctly.

CTC (Cost to Company): Total annual cost the company bears for you. Includes gross salary + employer's PF (12% of basic) + gratuity + other benefits. This is always the largest number.
Gross Salary: CTC minus employer's contributions. This is what appears on your salary slip before any employee deductions. Gross = Basic + HRA + Special Allowance + LTA + other allowances.
Net / In-Hand Salary: Gross minus all employee-side deductions — PF, ESI, Professional Tax, and TDS. This is what gets credited to your bank account every month.

              
              Flow: CTC → Minus Employer PF & Gratuity → Gross Salary → Minus Employee PF, ESI, PT, TDS → In-Hand Salary. Our salary breakup calculator visualises all of this clearly.
            

Salary Slip Breakdown – ₹8 LPA CTC

EARNINGS

Basic Salary₹26,667/mo

HRA (40% of Basic)₹10,667/mo

Special Allowance₹29,333/mo

Gross Salary₹66,667/mo

DEDUCTIONS

Employee PF– ₹3,200

Professional Tax– ₹200

TDS (estimated)– ₹4,500

In-Hand Monthly₹58,767

Deductions Explained

PF, ESI & Professional Tax – Your Monthly Deductions Unpacked

Every salaried employee sees three major statutory deductions on their payslip — PF, ESI, and Professional Tax. Understanding how each one is calculated makes you a better financial planner and helps you verify that your employer is deducting the correct amounts.

Employee PF (EPF)

12% of Basic Salary per month
Employer also contributes 12% of Basic (part of CTC)
Max PF on Basic ≤ ₹15,000 = ₹1,800/mo
Interest is tax-free up to ₹2.5L annual contribution
Our PF deduction calculator handles this automatically

ESI (Employee State Insurance)

Applicable only if Gross ≤ ₹21,000/month
Employee pays 0.75% of Gross
Employer pays 3.25% of Gross
Covers medical, maternity, disability
Our ESI calculator salary checks this threshold automatically

Professional Tax (PT)

State-level tax — not applicable everywhere
Maximum ₹2,500 per financial year
Maharashtra, Karnataka, West Bengal levy PT
Delhi, Rajasthan, UP do NOT levy PT
PT paid is deductible under Section 16(iii)

Tax Planning

Old vs New Tax Regime – Which Gives You a Higher Take-Home Salary?

Since FY 2023-24, the New Tax Regime is the default for all salaried individuals in India. However, you can still opt for the Old Tax Regime when filing your ITR. This choice directly impacts your monthly TDS deduction and therefore your actual monthly take-home salary.

Under the New Tax Regime, income tax rates are lower and the basic exemption limit is higher, but you lose access to most popular exemptions — HRA, LTA, Section 80C (₹1.5 lakh), Section 80D (medical insurance), and home loan interest benefits. Under the Old Tax Regime, you pay higher headline rates but can claim these deductions to meaningfully bring down your taxable income.

              
              General Rule of Thumb: If your total claimed deductions (80C + HRA + 80D + others) exceed ₹3–3.5 lakh per year, the Old Tax Regime typically gives you a higher in-hand salary. For smaller deduction amounts, the New Regime is usually better. Our salary after tax calculator estimates TDS under both regimes.
            

Regime Comparison – ₹10 LPA

Annual CTC₹10,00,000

Taxable Income~₹9,00,000

Old Regime Tax₹75,400

New Regime Tax₹54,600

New Regime Saves₹20,800/yr

How to Use

How to Use Our Free Salary Calculator – Step by Step

Our free CTC to in-hand salary calculator is built for speed and accuracy. Whether you need a monthly salary calculator, an annual salary calculator, or a full salary deduction calculator with every component broken out — this single tool does it all in four easy steps:

Enter Your Annual CTC

Type the total CTC figure from your offer letter or appointment letter. This is the annual package number — not monthly. Our CTC calculator automatically divides and computes all components on a monthly and annual basis.

Set Basic Salary & HRA Percentage

Use the sliders to set Basic as a % of CTC (40–50% is standard) and HRA as a % of Basic (50% for metro, 40% for non-metro). These two settings are the foundation of our salary breakup calculator as they drive most downstream calculations.

Select Tax Regime & Other Details

Choose New or Old Tax Regime, ESI applicability, and your Professional Tax amount (₹0 if not in your state). This turns our tool into a genuine income tax salary calculator — not just a basic arithmetic helper.

Get Your Full Breakup Instantly

In one click: see your Gross Salary, Employee PF, ESI, PT, TDS, final monthly take-home salary, annual in-hand total, take-home percentage of CTC, and employer PF. All free, no login, no ads — much faster than building a salary slip calculator in Excel.

          
          Planning a Salary Hike? Use our salary hike calculator by entering your new expected CTC and comparing the output against your current in-hand figure. A 20% CTC hike does not mean a 20% increase in take-home — TDS grows disproportionately at higher income levels.
        

HRA Benefit

HRA Exemption – How to Maximise It

HRA (House Rent Allowance) is one of the most powerful salary components for employees living in rented accommodation. It is available only under the Old Tax Regime and can significantly reduce your taxable income, increasing your monthly take-home.

HRA exemption is the minimum of these three:

Actual HRA received from employer
50% of Basic (Metro) or 40% of Basic (Non-Metro)
Actual Rent Paid – 10% of Basic Salary

              
              Keep rent receipts and your landlord's PAN (if annual rent > ₹1 lakh). Submit these to your employer to ensure accurate lower TDS deduction each month.
            

Smart Planning

5 Ways to Maximise Your Monthly Take-Home Salary

Optimise Basic Salary %: Lower basic = lower PF deduction = higher in-hand. But weigh this against lower retirement savings.
Claim HRA under Old Regime: If you pay rent, ensure HRA exemption is fully declared to your employer to reduce TDS.
Invest ₹1.5 lakh under 80C: PPF, ELSS, LIC, EPF top-up — reduces taxable income directly under Old Regime.
Use Employer NPS (10% of Basic): Completely exempt from tax, reduces TDS without impacting your gross salary.
Compare regimes before April: Run both scenarios on our salary after tax calculator at the start of every financial year before submitting your investment declaration to HR.

Quick Reference

Standard Salary Breakup – India 2026 (All CTC Levels)

The table below shows approximate in-hand salary figures across different CTC levels. Use this as a quick reference alongside our monthly salary calculator to validate your own payslip:

Annual CTC	Basic/mo	HRA/mo	Gross/mo	PF/mo	TDS/mo (est.)	In-Hand/mo
₹3 LPA	₹10,000	₹4,000	₹22,000	₹1,200	₹0	~₹20,400
₹5 LPA	₹16,667	₹6,667	₹37,500	₹2,000	₹500	~₹34,600
₹8 LPA	₹26,667	₹10,667	₹60,000	₹3,200	₹3,500	~₹52,700
₹12 LPA	₹40,000	₹16,000	₹90,000	₹4,800	₹8,000	~₹76,800
₹15 LPA	₹50,000	₹20,000	₹1,12,500	₹6,000	₹12,500	~₹93,700
₹20 LPA	₹66,667	₹26,667	₹1,50,000	₹8,000	₹20,000	~₹1,21,600

          
          Figures assume: 40% Basic, 40% HRA (Non-Metro), New Tax Regime, no ESI, ₹200 Professional Tax. For your exact personalised figure, use our salary calculator India tool at the top of this page.
        

Frequently Asked Questions

Common questions about salary calculation and take-home pay in India

CTC is the total annual cost the company incurs for you — including basic, allowances, and employer's PF and gratuity. In-hand salary is what actually gets credited to your bank after deducting employee PF, ESI, Professional Tax, and TDS. Typically, in-hand salary is 70–80% of CTC. Use our free CTC to in-hand salary calculator to find your exact figure.

The formula: In-Hand = Gross Salary – Employee PF – ESI – Professional Tax – TDS. Gross Salary = CTC – Employer PF (12% of Basic) – Gratuity. Basic is typically 40–50% of CTC. The easiest way is to use our free monthly salary calculator above — enter your CTC and it handles all calculations instantly with a full breakup.

Both employee and employer PF are technically part of CTC. However, employee PF (12% of basic) is deducted from your gross salary (shown on your payslip as a deduction), while employer PF is an additional cost on top of gross — both are included in the CTC total. This is the most common reason why your in-hand salary is lower than expected from the CTC figure. Our PF deduction calculator breaks this out clearly.

It depends on your total deductions. The New Tax Regime is typically better if your deductions are below ₹2.5 lakh. The Old Tax Regime is better if you claim significant 80C, HRA, 80D, and home loan benefits exceeding ₹3 lakh annually. Compare both using our salary after tax calculator before submitting your investment declaration to HR at the start of the financial year.

40–50% of CTC as Basic Salary is standard. A higher basic increases PF and gratuity (good for long-term wealth) but reduces monthly in-hand. A lower basic maximises take-home but reduces retirement savings. Most financial experts recommend 40–45% for a balanced approach. This is a key input in our salary breakup calculator — try different values to see the impact.

No. ESI applies only if gross salary is ₹21,000/month or below. If your gross exceeds ₹21,000, neither you nor your employer needs to contribute to ESI. For those covered, the employee contributes 0.75% and the employer 3.25% of gross salary. Our ESI calculator salary tool checks this threshold automatically and applies deductions only when applicable.

A 20% CTC hike does not translate to a 20% increase in in-hand salary — because TDS grows disproportionately as your income rises into higher tax slabs. To find the real impact, enter your new CTC into our salary hike calculator (same tool, just enter the new CTC) and compare the in-hand result against your current figure. The difference is your actual monthly gain after all deductions.