Total cost to company per year, as on your offer letter
Performance bonus included in CTC — paid separately, so it is excluded from the monthly figure
Several large states levy no professional tax at all — picking the right state matters
Enables the HRA exemption in the old-regime comparison; leave 0 if you don't pay rent
From FY 2026-27, eight cities qualify for the 50% limit (Income-tax Rules, 2026); for FY 2025-26 and earlier, only Mumbai, Delhi, Kolkata and Chennai
Assumptions (editable) — basic 40% of CTC, employer PF inside CTC, gratuity inside CTC
Most structures set basic at 40–50%; HRA component is 50% of basic
The single biggest reason in-hand comes out lower than expected
PPF, ELSS, LIC, EPF own share etc. — max ₹1.5 lakh
80CCD(1B) NPS, home-loan interest u/s 24(b), 80E etc.

Why Your In-Hand Salary Is Lower Than CTC ÷ 12

CTC is everything your employer spends on you, not what reaches your account. Three things stand between the two. First, parts of CTC are never paid monthly: the employer's PF contribution (12% of basic) and the gratuity accrual (4.81% of basic) sit inside most offers but go to your PF account and a future gratuity payout. Second, deductions come off your salary every month: your own 12% PF contribution and, in many states, professional tax. Third, income tax is deducted as TDS. After all three, most people take home 65–80% of CTC. This calculator shows exactly where your money goes, and every assumption it makes is visible and editable.

How the Structure Works

A typical offer sets basic salary at 40–50% of fixed CTC. HRA is usually half of basic. The employer's PF and gratuity, when included in CTC, come next, and whatever remains becomes special allowance. Your monthly gross is basic plus HRA plus special allowance; the bonus, if any, is paid on its own schedule and should never be counted in the monthly figure — which is why this calculator asks for it separately and excludes it.

Professional Tax Depends on Your State

Professional tax is a state levy capped at ₹2,500 a year by the Constitution. Maharashtra charges the full ₹2,500; Karnataka charges ₹200 a month but only above ₹25,000 of monthly salary; Tamil Nadu, West Bengal, Telangana, Gujarat and several others levy similar amounts. Just as importantly, Delhi, Haryana, Uttar Pradesh, Rajasthan, Punjab and the union territories levy nothing. Many salary calculators hardcode ₹200 a month for everyone — if you work in a nil state, that error alone misstates your in-hand by ₹2,400 a year.

The Tax Comparison Is Built In

The calculator computes your tax under both regimes and picks the lower. The new regime applies the FY 2026-27 slabs with the ₹75,000 standard deduction and the Section 87A rebate — salaried income up to about ₹12.75 lakh pays no tax at all. The old regime applies the ₹50,000 standard deduction, deducts professional tax, and lets you claim the HRA exemption (enter your rent to see it), 80C investments, health insurance under 80D and more. The income tax calculator has the full slab-by-slab detail, and the EPF calculator projects what those PF deductions grow into.

The Employer PF Trap

The most common surprise in a new offer: two candidates compare "12 lakh" offers, but one company includes its PF contribution in the CTC figure and the other pays it on top. That difference is worth about ₹4,800 a month at a 40% basic. This calculator has a toggle for exactly this — if your offer letter shows employer PF as a separate line above the CTC total, switch it to "paid over and above CTC" and watch the in-hand rise.

FAQs about Salary Calculator

Subtract what is never paid monthly (employer PF, gratuity accrual), then monthly deductions (your 12% PF, professional tax), then income tax under your chosen regime. What remains ÷ 12 is your monthly in-hand. This calculator does all three steps and shows the full working.
Because CTC includes money you never see monthly: employer PF (12% of basic), gratuity accrual (4.81% of basic) and often an annual bonus. After your own PF, professional tax and TDS, most people take home 65–80% of CTC.
Most Indian salary structures set basic at 40–50% of fixed CTC (this calculator defaults to 40% and lets you change it). Basic drives almost everything else: HRA is typically 50% of basic, and both PF contributions and gratuity are percentages of basic.
No — variable pay is paid quarterly or annually and only if targets are met. A calculator that spreads the bonus across months overstates your monthly figure, which is why this one asks for the bonus separately and excludes it from the monthly result.
Delhi, Haryana, Uttar Pradesh, Rajasthan, Punjab, Uttarakhand, Himachal Pradesh, Jammu & Kashmir and the union territories levy no professional tax. Maharashtra (₹2,500/year), Karnataka (₹200/month above ₹25,000), Tamil Nadu, West Bengal, Telangana, Gujarat and others do.
The calculator computes both and shows the winner. With few deductions the new regime usually wins — salaried income up to ~₹12.75 lakh is tax-free under it. Large HRA exemption plus 80C plus home-loan interest can still tip higher incomes to the old regime.
Usually yes — most offers include the employer's 12% contribution inside the CTC figure, which is why in-hand disappoints. Some companies pay it over and above. Check your offer letter's fine print and set the toggle in this calculator accordingly.