CTC to In-hand Salary Calculator — Monthly Take-home Pay for 2026-27

How to use the CTC to in-hand calculator

1. Enter your Annual CTC from your offer letter.
2. Enter Basic + DA as a share of CTC in per cent. Your offer letter’s salary breakdown shows this.
3. Choose how Provident fund is worked out: 12% of full basic, 12% of basic capped at the ₹25,000 wage ceiling, or no PF.
4. Tick CTC includes a gratuity provision (4.81% of basic) if your offer letter lists gratuity inside CTC.
5. Enter any Employer NPS contribution (% of basic), your Professional tax per year (0 if your state does not levy it) and Other monthly deductions such as company insurance or meal cards.
6. Read your in-hand pay per month and per year. The table walks from CTC to in-hand line by line, and the chart shows where the money goes.

What it does and when to use it

An offer letter quotes CTC, but rent and bills are paid from what lands in your bank account. The gap between the two surprises a lot of people, especially at their first job or after a big raise. This calculator closes that gap for a salaried employee in India under the new tax regime for tax year 2026-27.

Use it to:

• Compare job offers with different CTCs and salary structures.
• Check a payslip, to see whether the deductions look right.
• Plan a budget around a new salary before you accept it.
• See the effect of a higher basic pay or NPS, which change both PF and tax.

If you already know your gross salary and deductions, the Take-home Pay Calculator is simpler. To see how a raise changes your pay, try the Salary Hike Calculator.

How it works

The calculator follows the same order as a typical salary breakdown.

Step 1: from CTC to gross salary

• Basic = CTC × basic share
• Employer PF = 12% of basic (or of basic capped at ₹25,000 × 12 = ₹3,00,000 a year, or nil)
• Gratuity provision = basic × 15 ÷ 26 ÷ 12 (about 4.81% of basic), if ticked
• Employer NPS = basic × the NPS percentage
• Gross salary = CTC − employer PF − gratuity provision − employer NPS

Step 2: tax under the new regime

• Taxable income = gross salary + employer NPS − employer NPS deduction (up to 14% of basic) − ₹75,000 standard deduction
• Tax is worked out on the new-regime slabs (nil to ₹4 lakh, then 5%, 10%, 15%, 20%, 25% and 30% in ₹4 lakh steps above that), less the section 156 rebate (up to ₹60,000 when taxable income is ₹12 lakh or less, with marginal relief just above), plus surcharge if income passes ₹50 lakh, plus 4% cess.

Step 3: from gross salary to in-hand

• In-hand = gross salary − employee PF (equal to employer PF) − professional tax − income tax − other deductions

The monthly figure is the yearly in-hand amount divided by 12. All of this runs in your browser.

Key figures used

The Code on Social Security also limits how much pay can be kept out of “wages”. Under section 2(88), if the excluded allowances (such as HRA and conveyance) come to more than half of total pay, the excess is added back to wages. So if your basic and DA are well under half of your pay, PF and gratuity may be worked out on a larger amount than your basic. The calculator starts at 50% for this reason; change it to match your offer.

Worked examples

All results are from the calculator, with ₹2,400 professional tax and no other deductions.

1. ₹12 lakh CTC, 50% basic, PF on full basic, gratuity included. Basic is ₹6,00,000. Employer PF is ₹72,000 and the gratuity provision ₹28,846.15, so gross salary is ₹10,99,153.85. Taxable income after the ₹75,000 standard deduction is ₹10,24,153.85, under ₹12 lakh, so the rebate wipes out the tax: Income tax (new regime): ₹0.00. After employee PF of ₹72,000 and professional tax, In-hand per month: ₹85,396.15.

2. ₹20 lakh CTC, PF on full basic. Basic is ₹10,00,000, so each side of PF is ₹1,20,000. Gross salary is ₹18,31,923.08 and tax is ₹1,57,440. In-hand per month: ₹1,29,340.26.

3. The same ₹20 lakh CTC, PF capped at the wage ceiling. PF is now 12% of ₹3,00,000, so Employee PF: ₹36,000.00 and the employer pays the same. More of the CTC is paid as salary, so tax rises to ₹1,74,912, but In-hand per month: ₹1,41,884.26, about ₹12,544 more than example 2. The trade-off is a smaller PF balance for retirement.

4. ₹20 lakh CTC with 10% employer NPS. The employer puts ₹1,00,000 into NPS. That is within the 14% limit, so it is fully deductible: Income tax (new regime): ₹1,36,640.00, down from ₹1,57,440. In-hand falls to ₹1,22,740.26 a month, but your retirement savings go up by ₹1,00,000 a year while tax goes down by ₹20,800.

Limits and tips

• New regime only. If you plan to use the old regime with HRA, section 123 investments and home-loan interest, your tax could be lower. Work out the HRA part with the HRA Calculator and compare regimes.
• Fixed pay only. Variable pay, bonuses, ESOPs, perquisites and reimbursements are not modelled.
• Simplified PF. The calculator applies 12% to the basic you choose. It does not split the employer share between EPF and the pension scheme, model voluntary PF, or deal with the tax on very large employer contributions to PF, NPS and superannuation funds.
• Professional tax varies by state. Enter the yearly amount your state charges, or 0.
• Gratuity is not monthly pay. The provision in CTC is paid only when you leave, and only if you qualify. See the Gratuity Calculator for the payout rules.
• Your payslip is the final word. Employers spread tax across the year and may adjust it after you declare investments, so a single month can differ from this average.