Salary Calculator CTC to Take-Home
Enter your annual CTC and see exactly what you'll receive in hand every month — with income tax (old and new regime), EPF, professional tax, and a full salary breakdown.
New regime FY 2025-26: ₹75K std deduction; income up to ₹12L tax-free via 87A.
What Is a Salary Calculator?
A salary calculator is a tool that converts your annual Cost to Company (CTC) into your actual monthly take-home pay. It accounts for all the deductions your employer makes before crediting your salary — income tax, employee provident fund (EPF), and professional tax — so you know the real number, not just the headline CTC figure from your offer letter.
Your Salary Structure Decoded
- Basic Salary: the fixed foundation of your salary, typically 40%–50% of CTC. EPF, HRA, and gratuity are calculated on this.
- House Rent Allowance (HRA): provided for rent expenses — 50% of basic in metros, 40% elsewhere. Exempt from tax under Section 10(13A) if you pay rent.
- Leave Travel Allowance (LTA): covers domestic travel costs; exempt under Section 10(5) with travel proof.
- Special Allowance: the residual component after all other allowances — fully taxable, no exemption available.
- Performance Bonus: a variable pay component based on individual or company performance; fully taxable and usually excluded from the EPF calculation base.
- Employee Provident Fund (EPF): both you and your employer contribute 12% of basic salary each month (capped at ₹15,000/month basic). Your contribution is deductible under Section 80C.
- Professional Tax: a small state-levied tax, usually ₹200/month (max ₹2,500/year). Varies by state.
CTC, Gross Salary, and Take Home — What's the Difference?
CTC (Cost to Company) = Basic + HRA + LTA + Special Allowances + Bonus + Employer EPF + Gratuity Provision. This is the total annual cost your employer bears for you.
Gross Salary = CTC minus employer contributions (like employer EPF and gratuity provision) that do not reach your bank account. This is the taxable figure.
Net Take Home = Gross Salary − Employee EPF − Professional Tax − Income Tax. This is what actually gets credited to your account every month.
How to Use This Calculator
- Enter your annual CTC — the total package mentioned in your offer letter.
- Set your performance bonus as a percentage of CTC if your package includes variable pay.
- Choose your tax regime — New Regime (default, often better for most salaried employees from FY 2025-26) or Old Regime (if you have significant deductions under 80C, HRA, or NPS).
- Toggle EPF on or off depending on whether your employer deducts provident fund.
- Your monthly take-home, annual net salary, income tax, and a full deduction breakdown appear instantly on the right.
Salary Calculation — Worked Example
Assume an annual CTC of ₹8,00,000 with a bonus of ₹50,000 included.
Gross Salary = ₹8,00,000 − Employer EPF (₹21,600) = ₹7,78,400.
EPF base = min(Basic/12, ₹15,000) × 12 = ₹21,600 (employee contribution).
Professional Tax = ₹2,400/year.
Under the new regime (FY 2025-26), with ₹75,000 standard deduction: taxable income = ₹7,03,400 — below ₹12L, so 87A rebate applies and income tax = ₹0.
Annual Take Home = ₹7,78,400 − ₹21,600 − ₹2,400 − ₹0 = ₹7,54,400 (≈ ₹62,867/month).
New Regime vs Old Regime: Which Suits You?
| feature | new regime (FY 2025-26) | old regime |
|---|---|---|
| standard deduction | ₹75,000 | ₹50,000 |
| tax-free income threshold | up to ₹12L (via 87A) | up to ₹5L (via 87A) |
| section 80C (EPF, ELSS etc.) | not allowed | up to ₹1.5L |
| hra exemption | not available | available |
| nps 80ccd(1b) | not allowed | extra ₹50,000 |
| best for | most salaried employees, especially under ₹12L | those with large 80C + HRA claims |
How a Salary Calculator Helps You
- Demystifies your offer letter: see what a ₹15L CTC actually puts in your bank each month before accepting.
- Compares job offers: two packages can look similar on paper but yield very different take-homes once tax and EPF are factored in.
- Tax regime planning: toggle between new and old regime to instantly see which one saves you more tax this year.
- Budget planning: knowing your exact monthly in-hand helps you plan EMIs, SIPs, and expenses accurately.
- EPF impact: see how EPF reduces take-home but builds long-term wealth — and decide whether it's worth opting out if your employer allows it.
What Is Gratuity — and Is It Part of Your CTC?
Gratuity is a statutory lump-sum payout your employer provides on leaving after 5 or more years of service. Many employers include a gratuity provision in the CTC — typically (15/26) × monthly basic × years — which reduces your monthly in-hand without going into your current account. If your CTC breakup shows a 'gratuity' line, that amount is set aside by your employer and will be paid to you only when you exit after qualifying. It does not reduce your take-home on a monthly basis in most companies' payroll structures, but it is part of your CTC calculation.