Salary In-Hand Calculator

Your CTC and your monthly take-home are two different numbers. At ₹12 lakh CTC, most people expect ₹1 lakh per month. The real figure is usually ₹78,000–88,000. Here is exactly where the rest goes.

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Your CTC Is Not Your Salary

This is the thing HR departments rarely explain clearly at the time of joining. Your CTC (Cost to Company) is what the company spends on you, not what lands in your account. At ₹12 lakh CTC, most people expect roughly ₹1 lakh per month. The actual number is usually somewhere between ₹78,000 and ₹88,000, depending on your tax situation and state of employment.

The gap is real and it adds up fast. Employer PF contribution (~₹21,600/year going to your EPF account, not your bank), gratuity provision (~₹28,846/year accrued but only payable after 5 years), income tax, and professional tax together account for ₹15,000–25,000 per month at that salary level. None of it is hidden. It is all in your offer letter and payslip. It just takes a moment to see where each rupee actually goes.

Enter your CTC, your estimated annual income tax, any bonus paid separately from monthly salary, and recurring monthly deductions. The calculator shows your real take-home instantly. To get an accurate tax figure for the input, use our Income Tax Calculator FY 2026-27 first, then bring that number here.

How the Calculation Works

Monthly In-Hand = ((CTC − Annual Tax − Annual Bonus) ÷ 12) − Monthly Deductions
  • CTC: Total annual Cost to Company as stated in your offer letter, including all employer contributions and benefits
  • Annual Tax: Total TDS deducted across the year. Use the income tax calculator to estimate this accurately before entering
  • Annual Bonus: Any lump-sum component included in CTC but paid separately: performance bonus, joining bonus, annual variable pay
  • Monthly Deductions: Recurring monthly deductions: professional tax, voluntary PF top-up, health insurance premium, canteen or transport recovery

The formula removes tax and bonus from annual CTC first, leaving only the portion distributed monthly. Divide by 12 to get gross monthly salary. Subtract monthly deductions to get net take-home. The calculator handles this automatically.

Example: ₹15 lakh CTC, salaried, FY 2026-27

Annual Tax: ₹97,500  |  Annual Bonus: ₹1,50,000  |  Monthly Deductions: ₹2,200

Step 1: ₹15,00,000 − ₹97,500 − ₹1,50,000 = ₹12,52,500

Step 2: ₹12,52,500 ÷ 12 = ₹1,04,375 gross monthly

Step 3: ₹1,04,375 − ₹2,200 = ₹1,02,175 per month

What Different CTC Levels Actually Pay

The table below shows estimated monthly take-home at common CTC levels under the new tax regime, FY 2026-27. Assumptions: salaried employee, no annual bonus, ₹2,000/month in standard deductions. Tax calculated after ₹75,000 standard deduction and Section 87A rebate where applicable.

Estimated monthly in-hand at different CTC levels , new regime FY 2026-27, no bonus, ₹2,000/month deductions
Annual CTCMonthly GrossMonthly TaxMonthly In-HandTake-home %
₹5 lakh₹41,667₹0 (zero tax)~₹39,700~95%
₹8 lakh₹66,667~₹625~₹64,000~96%
₹12 lakh₹1,00,000~₹5,000~₹93,000~93%
₹15 lakh₹1,25,000~₹8,125~₹1,14,900~92%
₹20 lakh₹1,66,667~₹18,000~₹1,46,700~88%
₹25 lakh₹2,08,333~₹30,000~₹1,76,400~85%

At ₹5–8 lakh CTC, the 87A rebate brings tax close to zero for most salaried employees (taxable income stays below ₹12 lakh after the ₹75,000 standard deduction), so take-home sits close to CTC divided by 12. At ₹20–25 lakh the tax bill grows fast. Someone expecting ₹2.08 lakh per month from a ₹25 lakh offer actually receives around ₹1.76 lakh , a shortfall of ₹32,000 per month, or ₹3.84 lakh per year.

These figures are for the new regime with no deductions. If you have significant 80C investments, HRA claims, or an NPS contribution from your employer (Section 80CCD(2)), your tax will be lower and take-home higher. Use the Income Tax Calculator to get your precise tax figure, then bring it here.

Professional Tax Varies by State: Most People Find Out on Month 2

Professional tax is a state government levy deducted from your salary before it hits your account. It sounds minor, but it surprises people who relocate for work. Move from Delhi to Bangalore and a ₹200/month line item appears on your payslip for the first time. Move the other way and it disappears. Here are the rates for major states:

Professional tax rates by state , FY 2026-27
StateMonthly DeductionAnnual PTNotes
Maharashtra₹200/month₹2,500One month is ₹300; applies to salaries above ₹10,000/month
Karnataka₹200/month₹2,400Applies to salaries above ₹15,000/month
West Bengal₹110–200/month₹1,320–2,400Slab-based; ₹200/month for salaries above ₹1 lakh/month
Telangana₹150–200/monthup to ₹2,400Slab-based on monthly salary
Andhra Pradesh₹150/month₹1,800For salaries above ₹20,000/month
Tamil Nadu~₹104/month₹1,250Annual lump deduction spread across the year
Kerala₹130/month₹1,560For salaries above ₹12,000/month
Delhi₹0NilNo professional tax in Delhi
Uttar Pradesh₹0NilNo professional tax in UP
Gujarat₹0NilNo professional tax in Gujarat
Rajasthan₹0NilNo professional tax in Rajasthan

One small upside: professional tax is deductible under Section 16 of the Income Tax Act, so it reduces your taxable income by exactly the amount paid. At ₹2,500/year in Maharashtra, that saves roughly ₹750 in tax for someone in the 30% slab. Enter your state's professional tax in the "Other Monthly Deductions" field when calculating.

Three Things in Your CTC That Are Not Monthly Cash

Most people focus on the total CTC number and ignore what is inside it. Three components consistently catch new employees off guard when they see their first payslip.

Employer PF contribution. Your employer contributes 12% of your basic salary to your EPF account every month. For a ₹12 lakh CTC with ₹4.5 lakh basic, that is ₹4,500/month going straight to EPF, not your bank. It is your money eventually, but it is locked until you leave the job or retire. Most offer letters bundle this into CTC without calling it out separately.

Gratuity provision. Employers must provision for gratuity under the Payment of Gratuity Act, 1972. The formula is Basic Salary multiplied by 15 divided by 26. For a ₹4.5 lakh basic, that is roughly ₹28,846/year (about ₹2,400/month) that you only receive after completing 5 continuous years of service. Leave before 5 years and this provision returns to the company, not to you.

Variable pay. A 20% variable component on a ₹15 lakh CTC means ₹3 lakh depends on performance ratings, company profitability, and payout timing. In good years it pays fully. In difficult years it may pay 50% or less. Always run your take-home calculation on the fixed component alone if you need a reliable monthly budget figure. The variable is a bonus, not a salary.

Common Mistakes When Reading a Salary Offer

Dividing CTC by 12 and expecting that amount monthly. At ₹15 lakh CTC, that calculation gives ₹1.25 lakh. After income tax (~₹97,500/year), employer PF going to EPF instead of your bank, gratuity provision, and professional tax (₹2,400/year in Karnataka), actual take-home is closer to ₹1.02–1.05 lakh. The ₹20,000 gap affects your rent budget, your EMI eligibility at the bank, and your SIP plans from day one.

Comparing two job offers on total CTC without checking the structure. A ₹20 lakh CTC with 30% variable is not the same as a ₹20 lakh CTC with 10% variable. The first gives you a ₹14 lakh fixed salary — ₹1.17 lakh gross monthly. The second gives you ₹18 lakh fixed — ₹1.50 lakh gross monthly. The gap is ₹33,000/month in guaranteed cash even though both offers say the same CTC number.

Forgetting the professional tax difference when relocating between states. Moving from Delhi or Gurgaon to Hyderabad, Pune, or Kolkata adds ₹1,800–2,500 to annual deductions. Small but real. It usually shows up on month 2 or 3, not month 1, which makes it feel unexpected when it does appear.

Frequently Asked Questions

Take-home = ((CTC minus Annual Tax minus Annual Bonus) divided by 12) minus Monthly Deductions. For a ₹12 lakh CTC with ₹60,000 annual tax, ₹1 lakh bonus, and ₹2,000/month deductions: ((12,00,000 minus 60,000 minus 1,00,000) divided by 12) minus 2,000 = ₹89,167/month. The key step is separating tax and bonus from the monthly distribution before dividing.
CTC includes employer PF contribution (12% of basic), gratuity provision (roughly 4.8% of basic), group insurance premiums, and any annual bonus , none of which come as monthly cash. At ₹12 lakh CTC, these non-cash items alone account for roughly ₹4,000–5,000/month. Add income tax and professional tax and the gap between CTC and take-home becomes clear.
For a ₹10 lakh CTC with no bonus and ₹2,000/month in standard deductions, monthly take-home under the new tax regime (FY 2026-27) is approximately ₹79,000–83,000. If there is a ₹1 lakh annual bonus inside that CTC, the monthly estimate drops to ₹70,500–74,500 because the bonus is excluded from the monthly salary base. Enter your actual figures in the calculator above for a precise result.
Professional tax is a state government levy deducted from your salary by your employer before crediting your account. It ranges from nil in Delhi, UP, and Gujarat to ₹2,500/year in Maharashtra and Karnataka. Your employer remits it directly to the state government. Under Section 16 of the Income Tax Act, the amount deducted is allowed as a deduction, slightly reducing your taxable income.
Yes, enter the annual bonus in the Bonus field, not as part of your CTC-per-month estimate. Bonuses are paid quarterly, half-yearly, or annually, not every month. If you include a ₹1.5 lakh bonus in a ₹15 lakh CTC without separating it, the calculator returns a monthly figure that is ₹12,500 higher than what you will actually see credited each month.
It depends on your deductions. For a ₹12 lakh CTC with ₹2.5 lakh in deductions (80C, 80D, HRA), the old regime reduces annual tax by roughly ₹40,000–52,000, adding ₹3,300–4,300 to monthly take-home. For someone with few deductions, the new regime often matches or beats the old regime. Use our Income Tax Calculator to compare both regimes on your specific income before deciding.
In most Indian companies, employer PF is included within the CTC — it is part of what the company spends on you. This is an important distinction when comparing offers. A ₹12 lakh CTC that includes employer PF means the actual monthly cash component is lower than if employer PF were quoted as additional. Always ask HR whether the CTC figure is inclusive or exclusive of employer PF contributions.
The fastest lever is reducing income tax. Under the old regime, maximizing 80C (₹1.5 lakh) saves ₹31,200–46,800/year depending on your slab, adding ₹2,600–3,900/month. If your employer offers NPS under Section 80CCD(2), maximizing that contribution (up to 14% of basic) reduces taxable income even under the new regime. Asking HR to restructure your salary with a higher NPS contribution is one of the few ways to legally increase take-home without a promotion.

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