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Salary / CTC to Take-Home Calculator

A CTC (Cost to Company) figure rarely matches what actually lands in an employee's bank account each month. This calculator breaks a given annual CTC into its likely components — Basic salary, HRA, other allowances, employer and employee Provident Fund contributions, and gratuity provision — then estimates income tax under both the old and new regimes for FY 2025-26 to arrive at an approximate monthly take-home figure. It's built for quick client conversations and offer-letter sanity checks, not as a replacement for actual payroll processing.

Enter CTC Details

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Salary Breakdown

Basic Salary/year₹4,80,000
HRA/year₹2,40,000
Special Allowance/year₹3,99,312
Employer PF Contribution/year₹57,600
Gratuity Provision/year₹23,088
Gross Salary (taxable)/year₹11,19,312
Employee PF Deduction/year− ₹57,600
Professional Tax/year− ₹2,400
Income Tax — New Regime (incl. cess)₹0
Income Tax — Old Regime (incl. cess)₹1,20,654
New Tax Regime is more beneficial at this income level (used below for take-home)
Estimated Monthly Take-Home₹88,276

Annual take-home: ₹10,59,312 · Monthly gross (pre-deduction): ₹93,276

Assumptions used

• Basic salary: 40% of CTC · HRA: 50% of basic · Gratuity: 4.81% of basic

• PF: 12% of basic from both employer and employee (no ₹15,000 wage ceiling applied — many employers contribute on actual basic; adjust if yours differs)

• New regime FY 2025-26 slabs with ₹75,000 standard deduction and Section 87A rebate up to ₹12L taxable income

• Old regime slabs with ₹50,000 standard deduction, 80C deduction (capped ₹1.5L via PF), and 87A rebate up to ₹5L taxable income

• Surcharge, other 80C/80D investments, bonuses, and variable pay are not modelled. This is an estimate only — not a substitute for actual payroll processing.

How It Works

  1. 1

    Enter annual CTC and adjust the Basic percentage

    Most companies structure Basic salary between 35–50% of CTC. HRA, PF, and gratuity are then derived from this Basic figure.

  2. 2

    Select metro or non-metro city and professional tax

    HRA is typically 50% of Basic in metro cities (Delhi, Mumbai, Kolkata, Chennai) and 40% elsewhere. Adjust professional tax to your state's actual rate.

  3. 3

    Compare tax regimes and view estimated take-home

    The tool computes tax under both regimes and uses the lower one to estimate your final monthly take-home pay.

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Frequently Asked Questions

Why is my take-home salary lower than CTC divided by 12?+
CTC (Cost to Company) includes employer contributions like PF and gratuity that never reach your bank account, plus employee-side deductions like PF, professional tax, and income tax. Take-home pay is what remains after all of these are subtracted.
Which is better — old or new tax regime?+
It depends on your income level and how much you claim in deductions (80C, 80D, HRA, home loan interest, etc.). Generally, the new regime benefits those with fewer deductions, while the old regime benefits those maximising 80C/80D and HRA claims. This calculator estimates tax under both and highlights which is lower at your income level.
Is professional tax the same across India?+
No. Professional tax is levied by state governments and varies by state — some states like Delhi and Haryana do not levy it at all, while others cap it around ₹2,500/year. This calculator uses a default of ₹200/month, which you should adjust to your state's actual rate.
Does this include bonus or variable pay?+
No. This calculator estimates fixed CTC components only — Basic, HRA, allowances, PF, and gratuity. Bonuses, variable pay, ESOPs, and other one-time components are not included and should be added separately when estimating annual take-home.
Is the PF calculation accurate for all salary levels?+
The calculator applies a straightforward 12% of basic salary for both employee and employer PF contributions, without applying the statutory ₹15,000/month wage ceiling that some employers use for lower salaries. If your employer applies the ceiling, actual PF deducted may be lower than shown here.

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