What is the difference between CTC and take-home salary?

CTC (Cost to Company) is the total annual package, including the employer's PF contribution and other benefits. Take-home salary is what actually reaches your bank account after PF, professional tax and income tax are deducted.

Why is my in-hand salary lower than my CTC?

CTC includes the employer's PF contribution, which you do not receive in cash. Your gross salary is then reduced by your own PF, professional tax and income tax to arrive at the in-hand amount.

How much is deducted for PF?

Both you and your employer contribute 12% of basic salary to PF. Your 12% is deducted from your salary; the employer's 12% is part of CTC but goes into your PF account, not your bank account.

What is professional tax?

Professional tax is a small state-level tax on salaried income, usually around Rs 200 a month or Rs 2,400 a year. The exact amount varies by state, and a few states do not levy it at all.

Take-Home Salary Calculator

Convert your CTC into monthly in-hand salary. See how PF, professional tax and income tax reduce your package, with a full salary breakdown.

Annual CTC

₹

₹2,00,000₹5,00,00,000

Twelve Lakh Rupees

Cost to Company is your total annual package, including the employer's PF contribution.

Basic Salary (% of CTC)

30%60%

Basic salary is usually 40% to 50% of CTC. PF and gratuity are calculated on basic.

Monthly Take-Home

₹89,000

Annual Take-Home

₹10.68 L

Gross Salary

₹11.35 L

CTC minus employer PF

Salary Breakdown (annual)

Annual CTC₹12,00,000

Less: Employer PF contribution- ₹64,800

Gross salary₹11,35,200

Less: Employee PF (12% of basic)- ₹64,800

Less: Professional tax- ₹2,400

Less: Income tax (new regime)₹0

Annual Take-Home Salary₹10,68,000

This is an estimate. Actual in-hand salary varies with your company's salary structure, state professional tax, exact tax regime choice, insurance and other deductions. Income tax here is estimated on the new regime.

What is take-home salary?

Take-home salary (also called in-hand salary) is what actually credits to your bank account every month after EPF, professional tax, income tax (TDS) and any other deductions. It's almost always lower than your CTC and even lower than your gross salary. This calculator converts your CTC into a monthly take-home figure, splitting it across basic, HRA, special allowance, EPF, professional tax and TDS under both the new and old tax regimes.

How to use the Take-Home Salary Calculator

Enter your annual CTC. Total cost to company - what your offer letter shows.
Adjust basic, HRA and other components. Defaults use industry-standard splits; tweak if your structure differs.
Add your deductions for the old regime. 80C, 80D, HRA exemption, home-loan interest, etc.
Review monthly take-home under both regimes. See gross salary, all deductions and the actual monthly credit.
Pick the better regime. Use the lower of the two tax figures for the higher take-home.

Formula and method

Take-home (monthly) = (CTC − Employer EPF − Gratuity provision − Annual bonus) / 12 − Employee EPF − Professional tax − Monthly TDS

CTC includes employer's EPF contribution, gratuity provision and bonuses, which don't credit to your monthly salary. Subtract those, then take off employee EPF (12% of basic), professional tax (state-specific, around ₹200/month) and monthly TDS.

When to run this calculator

Before accepting a job offer. CTC is misleading; take-home tells the truth.
Comparing two offers. Different salary structures give very different take-home for the same CTC.
Tax regime decision. See which regime gives you more in-hand at this CTC.
Mid-year budgeting. Plan EMIs, SIPs and rent against the real monthly inflow.
Negotiating a raise. Knowing the take-home impact frames the ask correctly.

Take-Home Salary Calculator

Salary Breakdown (annual)

What is take-home salary?

How to use the Take-Home Salary Calculator

Formula and method

When to run this calculator

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