CTC to in-hand salary calculator
What your offer letter’s CTC actually pays each month.
₹12,00,000 (12 lakh)
Usually 40–50%. Check your offer letter or payslip
Insurance, meal cards and similar perks that aren’t paid as salary
₹2,500 (2.5 thousand) · ₹2,500 in most states that charge it; enter 0 if yours doesn’t
In-hand salary (monthly)
₹85,388
₹10,24,654 a year · New regime
- CTC
- ₹12,00,000
- − Employer PF
- ₹72,000
- − Gratuity (4.81% of basic)
- ₹28,846
- Gross salary
- ₹10,99,154
- − Employee PF
- ₹72,000
- − Professional tax
- ₹2,500
- − Income tax (New regime)
- ₹0
- In-hand salary (yearly)
- ₹10,24,654
- In-hand: 85.4%
- Income tax: 0.0%
- PF and other: 14.6%
The new regime saves you ₹1,11,730 a year compared with the other regime.
Uses the income tax slabs, 87A rebate and standard deduction for the chosen year; in the old regime, your PF counts towards 80C. Allowances such as HRA, and deductions such as 80D, aren’t included; use the income tax calculator for those. An estimate, not tax advice.
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How to convert CTC to in-hand salary
- 1
Enter the CTC from your offer letter.
- 2
Set the basic salary share, PF and whether gratuity is part of CTC.
- 3
Add any benefits included in CTC, such as insurance.
- 4
See the gross salary, every deduction and your monthly in-hand pay.
Why CTC isn’t what you take home
CTC, or cost to company, is everything an employer spends on you in a year. Part of it is never paid as monthly salary: the employer’s PF contribution, gratuity set aside for later, and benefits like group insurance or meal cards. Then your own PF, professional tax and income tax come out of what’s left. That’s why a ₹12 lakh CTC rarely means ₹1 lakh a month in hand.
A CTC calculator and salary breakup calculator: convert CTC to in-hand salary and see the full CTC to take-home picture.
How the calculator breaks it down
- Basic salary: a share of CTC, usually 40–50%. Most other parts depend on it.
- Employer PF: 12% of basic, either on the full basic or capped at the ₹15,000 wage ceiling.
- Gratuity: 4.81% of basic if your CTC includes it. You receive it only after five years of service.
- Other benefits: insurance premiums and similar items included in CTC but not paid as salary.
- Gross salary is what remains; from it, the calculator takes your employee PF, professional tax and income tax.
Example
A ₹15 lakh CTC with basic at 50% and PF on full basic: employer PF ₹90,000, gratuity about ₹36,058, gross salary about ₹13.74 lakh. After employee PF of ₹90,000, professional tax of ₹2,500 and income tax of ₹77,830 in the new regime, the in-hand salary is about ₹12.04 lakh a year, roughly ₹1,00,300 a month.
Comparing job offers
Two offers with the same CTC can pay quite differently each month. A higher basic means more PF and gratuity (good for savings, lower monthly cash), and benefits inside CTC lower your salary. Run both offers through the calculator and compare the in-hand figure, then check the full tax picture in the income tax calculator. Got a raise instead? Try the salary hike calculator.
Frequently asked questions
Why is my in-hand salary so much lower than my CTC?
CTC includes money you don’t receive monthly: the employer’s PF, gratuity and benefits like insurance. Then your own PF, professional tax and income tax come out of the gross salary.
What is the difference between CTC and gross salary?
Gross salary is CTC minus the employer’s PF contribution, gratuity and non-cash benefits. It’s the total of the salary components on your payslip before deductions.
How is gratuity calculated in CTC?
Many companies set aside 4.81% of basic (15 days’ pay for each year ÷ 26 working days ÷ 12 months). It’s paid only when you leave after at least 5 years of service.
Is the result exact?
It’s a close estimate. Your payslip may also include variable pay, meal cards, NPS, HRA exemption or other items that change the final figure.