CTC to In-Hand Salary Calculator FY 2026-27
Convert your Cost-to-Company into real monthly take-home pay, with PF, gratuity, professional tax and income tax factored in.
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Advanced optionsTax year, deductions and other settings (sensible defaults already applied)
Typically 35–50% of CTC.
Maharashtra: Men: up to ₹7,500 nil; ₹7,501–₹10,000 ₹175/month; above ₹10,000 ₹2,500/year (₹200/month, ₹300 in February) · Women: up to ₹25,000 nil; above ₹25,000 ₹2,500/year
Your in-hand salary
In hand: ₹88,268/month
Income tax: ₹0/year (New Regime)
Show calculationEvery step, the rule behind it and the official source
1. CTC to gross salary
- Annual CTC₹12,00,000
- Employer PF contribution₹57,600
12% of basic salary; paid into your EPF account, not your salary · EPFO
- Gratuity (part of CTC)₹23,088
4.81% of basic, paid only when you leave after five years of service
- Gross salary₹11,19,312
2. Taxable income
- Gross income₹11,19,312
- Standard deduction₹75,000
Section 19 (earlier 16(ia)): ₹75,000 in the new regime · Income Tax Dept
- Taxable income₹10,44,312
3. Income tax
- Tax on slabs₹44,431
₹0–4L @ 0% ₹0 ₹4L–8L @ 5% ₹4,00,000 × 5% = ₹20,000 ₹8L–12L @ 10% ₹2,44,312 × 10% = ₹24,431 Section 202 (earlier 115BAC): new regime slab rates · Income Tax Dept
- Rebate₹44,431
Section 156 (earlier 87A): up to ₹60,000 off when taxable income is ₹12,00,000 or less · Income Tax Dept
- Tax after rebate₹0
- Health & education cess₹0
4% of income tax · Income Tax Dept: Tax rates
- Total income tax₹0
4. In-hand pay
- Gross salary₹11,19,312
- Employee PF contribution₹57,600
12% of basic salary · EPFO
- Professional tax₹2,500
State tax on employment, at most ₹2,500 a year · Professional tax by state
- In-hand pay (year)₹10,59,212
- In-hand pay per month₹88,268
Each line is rounded for display, so adding the rounded lines can differ from the total by 1.
What if…Move a slider to see how your tax changes
Full breakdownTables, chart and tax-saving tips
CTC Breakdown
How your annual CTC is structured.
Gross Salary (Taxable)
₹11,19,312
Deductions
Subtracted from your gross salary each period.
Total Deductions
₹60,100
| Component | Monthly | Annual |
|---|---|---|
| CTC | ₹1,00,000 | ₹12,00,000 |
| Gross Salary | ₹93,276 | ₹11,19,312 |
| Total Deductions | ₹5,008 | ₹60,100 |
| Net Take-Home | ₹88,268 | ₹10,59,212 |
Understanding Your CTC vs In-Hand Salary
Cost-to-Company (CTC) is what an employer spends on you every year — but it's never what lands in your bank account. CTC bundles your fixed pay (Basic, HRA, Special Allowance), variable pay (bonus), and costs the company bears on your behalf but you never directly receive: the employer's Provident Fund contribution and gratuity (paid out only when you leave after 5 years). Your actual monthly credit — the in-hand or net salary — is your Gross Salary minus your own PF contribution, Professional Tax (state-specific), and TDS on income tax.
Why does Basic % matter so much? A higher Basic salary means higher PF contributions (more retirement savings, less in-hand today) and a higher HRA base if you rent. Most companies fix Basic between 35% and 50% of CTC. Employee PF is mandatory at 12% of Basic (matched by the employer), calculated either on the full Basic or capped at the statutory wage ceiling of ₹15,000/month, depending on company policy.
Note: This is an estimate for salaried employees in India for FY 2026-27 (Tax Year 2026-27). Actual in-hand pay can vary based on your specific company's salary structure, applicable state Professional Tax slabs, and any additional employer deductions (insurance premiums, loan EMIs, etc.) not modeled here.
Not sure which regime to pick? The old vs new tax regime calculator compares both with your deductions. Weighing two jobs? Try the job offer comparator.
Figures are illustrative estimates and not a substitute for your company's official payslip or professional tax advice.
How the CTC to in-hand salary calculator works
Your CTC (cost to company) is what your employer spends on you in a year. Part of it never reaches your bank account, and part of what does is taxed. The calculator peels those layers off in the same order as a payroll team, using FY 2026-27 (Tax Year 2026-27) tax rules.
- 1
Work out basic salary
Basic is a percentage of CTC (40% by default, which you can change). PF, gratuity and HRA are all calculated on basic, so this one number drives most of the result.
- 2
Remove the parts of CTC you don't receive monthly
The employer's PF contribution (12% of basic, or 12% of basic up to ₹15,000 a month if your employer caps it) goes to your EPF account. Gratuity (about 4.81% of basic, the 15-days-per-year formula) is paid only when you leave after qualifying service. Any employer NPS contribution goes to your NPS account. What is left is your gross salary.
- 3
Split gross salary into its components
Gross salary is shown as basic, HRA (50% of basic in a metro, 40% elsewhere), any bonus you enter and a special allowance that makes up the rest.
- 4
Take off employee PF, professional tax and income tax
Your own PF contribution matches the employer's. Professional tax follows the state you pick (up to ₹2,500 a year). Income tax is worked out on gross salary under the regime you choose, with the standard deduction, the Section 156 (earlier 87A) rebate and 4% cess; in the old regime your PF also counts towards Section 123 (earlier 80C).
- 5
Divide by 12
Gross salary minus those deductions is your yearly take-home; divided by 12 it is the in-hand amount you should see each month.
Worked example: ₹15,00,000 CTC
Basic at 40% of CTC, a metro city, no variable pay, ₹2,500 professional tax and the new regime. The only difference between the columns is whether PF is on full basic or capped at the ₹15,000-a-month wage ceiling.
| PF on full basic | PF capped at ₹15,000/month | |
|---|---|---|
| Annual CTC | ₹15,00,000 | ₹15,00,000 |
| Employer PF | ₹72,000 | ₹21,600 |
| Gratuity | ₹28,860 | ₹28,860 |
| Gross salary | ₹13,99,140 | ₹14,49,540 |
| Employee PF | ₹72,000 | ₹21,600 |
| Professional tax | ₹2,500 | ₹2,500 |
| Income tax incl. cess | ₹81,766 | ₹89,628 |
| Take-home (year) | ₹12,42,874 | ₹13,35,812 |
| In-hand (month) | ₹1,03,573 | ₹1,11,318 |
Capping PF raises monthly in-hand by ₹7,745, but you save ₹8,400 a month less in your EPF account. Neither option changes your CTC.
Who should use this calculator
- Anyone with a new job offer who wants to know what the CTC means in monthly take-home pay.
- Employees after an appraisal, to see how much of the raise actually reaches their account.
- People planning a home loan EMI or rent who need a realistic monthly income figure.
- Employees choosing between full-basic and capped PF, or between the old and new regime for TDS.
What this calculator doesn't cover
- Variable pay is counted as paid in full; if it depends on performance, your real in-hand may be lower.
- Reimbursements, meal cards, flexible benefit plans, LTA and perquisites such as a company car or ESOPs are not modelled.
- ESIC contributions, which apply only to lower salaries, are not included.
- Professional tax is built in for a few states only; for others, enter the amount yourself or see professional tax by state.
- Employers can structure salary differently. Your payslip is the final word; use this to check it.
Read next
- How to calculate in-hand salary from CTCStep-by-step method with examples from ₹8 lakh to ₹25 lakh CTC.
- Job offer CTC comparatorCompare two offers side by side on monthly in-hand.
- Old vs new regime calculatorCheck which regime lowers the tax on your salary.
- Professional tax by stateSlabs for Maharashtra, Karnataka, Gujarat, Telangana and Assam.
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FAQ
Frequently asked questions
What is the difference between CTC and in-hand salary?
CTC (Cost to Company) is everything your employer spends on you in a year, including employer PF, gratuity and variable pay. In-hand salary is what reaches your bank account each month after employee PF, professional tax and income tax (TDS) are deducted.
How is in-hand salary calculated from CTC?
Start with CTC, remove employer PF and gratuity to get gross salary, then subtract your own PF contribution, professional tax and income tax. The result divided by 12 is your monthly take-home. This calculator does each step using FY 2026-27 tax rules.
How much PF is deducted from salary?
Employees contribute 12% of basic salary to the Provident Fund, and the employer adds a matching 12% as part of your CTC. Some employers calculate PF on basic capped at ₹15,000 a month, which lowers the deduction and raises your in-hand pay.
What is professional tax and how much is it?
Professional tax is a state levy on salaried income, capped at ₹2,500 a year. Rates and slabs differ by state and some states don't charge it at all, so check your payslip. ₹2,400 a year is a common figure.
Is gratuity part of my monthly salary?
No. Gratuity is often included in CTC but is paid as a lump sum when you leave, generally after at least five years of continuous service. It doesn't add to your monthly take-home.
What is the in-hand salary on a ₹12 lakh CTC?
About ₹88,268 a month in FY 2026-27 under the new regime, with basic at 40% of CTC, PF on full basic, gratuity inside CTC and Maharashtra professional tax. Income tax is nil because taxable income stays under ₹12 lakh after the ₹75,000 standard deduction.
Should I tell my employer the old or new regime for TDS?
Your employer deducts TDS under the regime you declare at the start of the year, and uses the new regime if you don't declare one. If you have no business income you can still pick the other regime when you file your return, and any extra TDS comes back as a refund.
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