Advanced deductions & tax inputs
New Regime • average monthly take-home
Old-regime deductions & other inputs
New Regime
Salary Calculator India – Calculate In-Hand Salary from CTC
Use this Salary Calculator India to estimate your in-hand salary, take-home salary, salary after tax and monthly net salary for FY / Tax Year 2026-27. The calculator supports two closely related salary-search intents: convert an annual CTC to in-hand salary, or start with annual gross pay and calculate your salary after income tax and employee deductions.
What Is a Salary Calculator?
A salary calculator estimates how an annual salary package translates into monthly pay. In India, the term can mean several slightly different things. A CTC salary calculator starts with Cost to Company. An in-hand salary calculator estimates what reaches your bank account. A salary after tax calculator focuses on the amount remaining after income tax, while a take-home salary calculator normally goes one step further and also removes payroll deductions such as employee PF and professional tax.
This page keeps those meanings separate in the result. The calculator shows Salary After Income Tax as well as Net Take-Home / In-Hand Salary, so you can see how much of the difference comes from tax and how much comes from other salary deductions.
In-Hand Salary Calculator: CTC to Monthly Take-Home
The first calculator mode is designed for job offers and annual packages quoted as CTC. Enter your annual CTC, choose the tax regime, adjust the basic-salary percentage and tell the calculator whether employer PF and gratuity are included in the package. It then estimates the cash salary available before employee deductions and calculates the final annual and average monthly in-hand amount.
This is useful for searches such as CTC to in-hand salary calculator, salary in hand calculator, take home salary calculator, CTC calculator India, net salary calculator and monthly salary calculator. These queries usually represent the same practical question: “If the company offers me this package, approximately how much will I receive?”
Salary After Tax Calculator
The second mode is for users who already know their annual gross salary. It calculates the estimated income tax under the selected regime and shows the salary remaining after tax. You can then add employee PF, professional tax and other payroll deductions to estimate the final net salary.
This distinction matters because salary after tax and in-hand salary are not always identical. If your annual gross salary is ₹12 lakh and you have employee PF deductions, the amount left after income tax can still be higher than the money that reaches your bank account, because PF and other payroll deductions are taken after the tax calculation.
How Is In-Hand Salary Calculated from CTC?
The simplified calculation used by this tool can be understood in two stages:
In-Hand Salary ≈ Cash Salary − Employee PF − Professional Tax − Employee ESI − Income Tax
Actual company payroll structures can be more complex. CTC may contain variable pay, insurance premiums, employer NPS, meal benefits, stock-related compensation, reimbursements or other benefits. That is why the inputs for employer PF, gratuity, variable pay and old-regime deductions are editable rather than treated as universal rules.
CTC vs Gross Salary vs In-Hand Salary
| Term | What it usually means | Why it differs |
|---|---|---|
| CTC | Total annual cost incurred by the employer for your compensation package. | Can include employer PF, gratuity, insurance, bonus and benefits that do not arrive monthly in your bank. |
| Gross Salary | Salary earnings before employee-side payroll deductions and income tax. | Usually excludes some employer-only CTC costs. |
| Salary After Tax | Gross salary minus estimated income tax. | It may still include amounts that will later be deducted for PF, PT or other payroll items. |
| In-Hand / Take-Home Salary | Estimated amount available after tax and employee payroll deductions. | This is closest to the recurring net salary credited to the employee, subject to payroll timing and variable pay. |
Income Tax Slabs Used for FY 2026-27
For Tax Year / FY 2026-27, the default individual tax rates under the Income-tax Act, 2025 are nil up to ₹4 lakh, 5% from ₹4 lakh to ₹8 lakh, 10% from ₹8 lakh to ₹12 lakh, 15% from ₹12 lakh to ₹16 lakh, 20% from ₹16 lakh to ₹20 lakh, 25% from ₹20 lakh to ₹24 lakh and 30% above ₹24 lakh. The calculator applies these slabs to normal salary income under the new regime.
| New Regime Taxable Income | Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 – ₹8,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% |
| ₹12,00,001 – ₹16,00,000 | 15% |
| ₹16,00,001 – ₹20,00,000 | 20% |
| ₹20,00,001 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
For a resident individual under the new regime, the calculator also applies the rebate structure for normal income up to ₹12 lakh and the statutory marginal-relief calculation immediately above that level. A 4% Health and Education Cess is added after income tax and surcharge, where applicable.
Old Tax Regime Used in the Salary Calculator
Under the old regime, the slab structure depends on age. For an individual below 60, the basic exemption is ₹2.5 lakh, followed by 5% up to ₹5 lakh, 20% from ₹5 lakh to ₹10 lakh and 30% above ₹10 lakh. Resident senior citizens have higher old-regime basic exemption limits. The calculator lets you select the age group when you open Advanced Inputs.
The old-regime estimate can include HRA exemption, Section 80C, additional NPS deduction under 80CCD(1B) and other eligible deductions that you enter. Because these benefits depend on the taxpayer’s actual circumstances, the page does not assume that every salaried person is eligible for the same deductions.
Standard Deduction for Salaried Employees
The tax calculation uses a standard deduction of ₹75,000 under the new regime and ₹50,000 under the old/normal regime, subject to salary income. This reduces taxable salary; it is not a cash deduction from your payslip.
This is one reason that “salary after tax” cannot be calculated by simply applying the headline tax slab to your CTC. Tax is calculated on taxable income after the permitted salary deductions and other eligible adjustments, not directly on the CTC number shown in an offer letter.
How PF Affects In-Hand Salary
Employee Provident Fund contributions reduce monthly take-home because the employee contribution is deducted from salary. EPFO states that the employee contribution is generally 12% of basic wages plus applicable DA/retaining allowance, and the employer also contributes 12% subject to the scheme rules.
Some employers calculate PF on actual eligible basic pay, while some salary structures use the statutory wage ceiling for mandatory contribution. That is why the calculator provides a Cap PF at ₹15,000 monthly wage option. When selected, 12% of ₹15,000 equals ₹1,800 per month.
For an old-regime tax estimate, employee EPF can form part of Section 80C. The tool therefore automatically combines the estimated employee PF with any “Other 80C” amount you enter, subject to the combined ₹1.5 lakh cap.
How Gratuity Affects CTC and Take-Home Salary
Many Indian offer letters show a gratuity provision inside CTC even though gratuity is not normally paid as part of monthly take-home salary. Employers often represent the annual provision at approximately 4.81% of basic salary, derived from the statutory gratuity formula. The calculator uses that approximation only when the “Gratuity inside CTC” option is enabled.
If your employer’s offer letter does not include gratuity inside the quoted CTC, switch that option off. The purpose of this setting is to model the package you actually received rather than force every company into the same salary structure.
Professional Tax and Salary
Professional tax is imposed under state-level rules, so the amount is not identical across India. Instead of hardcoding one state as the universal default, this calculator lets you enter the annual professional-tax amount shown on your payslip or applicable under your state’s rules.
Professional tax is a real cash deduction from salary. It can also affect taxable salary where permitted under the salary-tax provisions. Keeping it as a separate input makes the calculation easier to reconcile with an actual payslip.
ESI in the Salary Calculator
ESIC’s employee contribution rate is 0.75% of wages and the employer share is 3.25%. The existing wage limit for coverage is ₹21,000 per month for most employees. The optional ESI setting applies the employee-side 0.75% deduction when the calculator’s estimated monthly cash wages fall within that threshold.
Why CTC to In-Hand Salary Can Vary Between Companies
Two companies can both offer ₹15 LPA and still produce different monthly in-hand salaries. One employer might set basic salary at 40% of fixed CTC and cap PF at the statutory wage ceiling. Another might use 50% basic and contribute PF on the full basic. A third might place a larger annual variable bonus inside the same ₹15 lakh package.
That is why a useful salary calculator needs adjustable assumptions. Search results often show a single “₹15 LPA in-hand” number, but that number cannot be universally correct without knowing the salary breakup, tax regime, deductions, state professional tax and variable-pay structure.
Monthly Salary Calculator: How Annual CTC Becomes Monthly Pay
The tool reports an average monthly in-hand salary by dividing estimated annual take-home by 12. If your package includes a large variable bonus paid quarterly or annually, the actual amount credited in ordinary months may be lower than this average and the bonus month may be higher.
For this reason, use the monthly result as an annualised comparison figure rather than a guaranteed payslip value. Your employer’s TDS schedule, bonus payout month, reimbursements and payroll cut-off can change the month-to-month bank credit.
Salary Breakup Calculator for Job Offers
When comparing two job offers, start with the annual CTC but do not stop there. Check the fixed portion, variable pay, basic salary, employer PF, gratuity and any benefits included inside the CTC. Then compare estimated annual in-hand under the same tax assumptions.
A higher CTC does not always produce the same percentage increase in monthly take-home. The gap can widen when more employer-side benefits are included, when PF is calculated on a larger basic salary, or when the higher package moves more taxable income into upper tax slabs.
Popular In-Hand Salary Questions
What is 5 LPA in-hand salary?
The exact monthly amount depends on the salary structure, PF, professional tax and whether employer-side benefits are included within the ₹5 lakh CTC. Use the 5 LPA quick button above to calculate it using your own assumptions instead of relying on a single generic number.
What is 8 LPA in-hand salary?
An 8 LPA CTC does not convert directly to ₹66,667 per month because CTC may include employer PF, gratuity and other components. The calculator removes the selected employer-side components and then applies employee deductions.
What is 10 LPA in-hand salary?
For a ₹10 lakh CTC, the monthly take-home changes materially depending on whether PF is capped or calculated on full basic and whether gratuity is inside CTC. Select 10 LPA and adjust those options to match the offer letter.
What is 12 LPA in-hand salary?
At 12 LPA, tax and salary-structure assumptions become increasingly important. Under the current new-regime rebate framework, taxable salary—not CTC—is the number that determines whether income tax is payable.
What is 15 LPA or 20 LPA in-hand salary?
For higher packages, income tax generally becomes a larger part of the CTC-to-take-home gap. Use the calculator’s New vs Old comparison and enter actual old-regime deductions if you want a meaningful regime comparison.
Salary Calculator vs Income Tax Calculator
An income-tax calculator answers “How much tax do I owe?” A salary calculator answers a broader payroll question: “How much of my salary package is likely to reach me?” The latter therefore needs information about CTC structure and payroll deductions in addition to tax slabs.
If you only want tax on gross salary, use the Gross → Salary After Tax tab. If you are evaluating a job offer quoted as CTC, use CTC → In-Hand Salary.
Frequently Asked Questions
What is in-hand salary?
In-hand salary, also called take-home or net salary, is the estimated amount left after income tax and employee payroll deductions such as PF, professional tax and ESI where applicable. It is different from CTC.
What is a salary after tax calculator?
A salary after tax calculator estimates how much of your gross salary remains after income tax. This page also lets you subtract PF, professional tax and other payroll deductions to estimate final take-home salary.
Is CTC the same as gross salary?
No. CTC can include employer-side costs such as employer PF, gratuity, insurance or other benefits. Gross salary normally refers to salary earnings before employee deductions and tax.
Why is my in-hand salary much lower than CTC divided by 12?
Because CTC may include employer PF, gratuity, bonus and benefits, while employee PF, professional tax, ESI and income tax can further reduce the amount paid in cash.
Which tax regime does this salary calculator use for FY 2026-27?
The calculator supports both the default new regime and the old-regime option. New-regime slab rates for Tax Year 2026-27 run from nil up to ₹4 lakh through 30% above ₹24 lakh, with the applicable resident-individual rebate and marginal relief built into the estimate.
What standard deduction is used?
The calculator uses ₹75,000 under the new regime and ₹50,000 under the old/normal regime, subject to salary income.
Does employee PF reduce in-hand salary?
Yes. Employee PF is deducted from salary and therefore reduces the cash take-home, although it is a retirement saving rather than a tax payment.
Does employer PF reduce in-hand salary?
If employer PF is included inside the quoted CTC, that portion of CTC is not paid as monthly cash salary. The calculator lets you switch this assumption on or off.
Does gratuity reduce monthly take-home?
If gratuity is included in CTC, it can reduce the portion of the package available as regular cash salary because the gratuity provision is not normally paid every month.
Does the new tax regime allow HRA exemption?
No. HRA exemption is associated with the old regime. The HRA input in this calculator is therefore applied only to the old-regime estimate.
Can I use the calculator to compare New vs Old tax regime?
Yes. In CTC mode the result automatically estimates monthly in-hand under both regimes using the same salary structure and the old-regime deductions you entered.
Is the monthly in-hand amount exact?
No. It is an estimate. Employers use different salary structures, PF policies, bonus schedules, reimbursements and payroll rules. Use your offer letter or payslip values whenever possible.
Union Budget 2026-27 Memorandum — tax rates for Tax Year 2026-27
Income-tax Act, 2025 — rebate and marginal relief provisions
Income Tax Department — Income from Salary and standard deduction
ESIC — ESI contribution and coverage information
Updated September 2026. This is an estimation tool for salary comparison and educational use, not payroll, tax-filing or financial advice.