Take-Home Salary Calculator (CTC to In-Hand)

Your take-home salary is your CTC minus the employer's PF and gratuity contribution (which never reach your bank), then minus your own PF, professional tax, and income tax (TDS). On a typical ₹12 lakh CTC with 50% basic, monthly in-hand works out to roughly ₹85,000 to ₹90,000 under the new tax regime for FY 2025-26. Enter your CTC below to estimate your monthly and annual net pay.

Updated July 2026. Figures for FY 2025-26 (AY 2026-27).

How it is calculated

From CTC to gross salary

CTC includes the employer's contributions. To get your gross salary, subtract the employer PF (12% of basic) and the gratuity provision (about 4.81% of basic). Basic is usually 40% to 50% of CTC.

Deductions from gross

• Employee provident fund: 12% of basic salary
• Professional tax: a small state levy, typically up to ₹2,400 a year
• Income tax (TDS): computed on gross salary under the new regime, after the ₹75,000 standard deduction

In-hand salary

In-hand salary = gross salary minus employee PF, professional tax and income tax. Divide by 12 for your monthly take-home. This calculator uses the new tax regime by default, where salary up to ₹12,75,000 is tax free.

Worked example. A ₹12,00,000 CTC with 50% basic gives roughly ₹10.7 lakh gross and about ₹85,000 to ₹90,000 monthly in-hand under the new regime.

Frequently asked questions

What is the difference between CTC and in-hand salary?

CTC (cost to company) is the total the employer spends on you, including their PF and gratuity contributions. In-hand salary is what actually reaches your bank after PF, professional tax and income tax are deducted. In-hand is typically 70% to 85% of CTC.

How is basic salary decided?

Basic salary is a fixed share of CTC, usually 40% to 50%. It drives your PF, gratuity and HRA, so a higher basic means higher PF savings but lower immediate in-hand pay.

Is income tax deducted from salary every month?

Yes. Employers deduct TDS (tax deducted at source) in roughly equal monthly instalments across the year, based on your estimated annual tax.

Does this include HRA exemption?

This estimate uses the new regime, which does not allow HRA exemption. If you rent and want to claim HRA, use the old regime and our HRA calculator to size the exemption.

Related calculators

Income Tax Calculator · HRA Exemption Calculator · Gratuity Calculator · PPF Calculator

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