Take-Home Salary Calculator
The salary in your offer letter, the CTC, is rarely what lands in your bank account. Cost to Company bundles in the employer's PF contribution, a gratuity provision and other costs you never see as cash, and your take-home is what remains after your own PF, professional tax and income tax. This calculator breaks a CTC into its parts and estimates your monthly in-hand pay using the FY 2025-26 new-regime slabs and the ₹75,000 standard deduction, so you know what to expect each month.
Monthly Take-Home
₹88,276
Annual Take-Home
₹10,59,312
Income Tax
₹0
Gross Salary
₹11,19,312
Employee PF
₹57,600
Basic
₹4,80,000
HRA
₹2,40,000
Special Allowance
₹3,99,312
Employer PF
₹57,600
About the Take-Home Salary Calculator
Take-home or in-hand salary is the amount credited to your bank account each month after all deductions. It is derived from your gross salary by subtracting your own provident fund contribution, professional tax levied by your state, and the income tax deducted at source by your employer.
Why it is useful
A high CTC can be misleading because a large share goes to retirement contributions and tax before you see any of it. This calculator reveals the real monthly cash figure, helps you compare two job offers on a like-for-like basis, and shows how much of the gap between CTC and in-hand is tax versus savings.
How the calculation works
The tool computes take-home = gross − employee PF − professional tax − income tax, where gross is CTC minus the employer PF and gratuity provision. Income tax is estimated on the FY 2025-26 new-regime slabs after the ₹75,000 standard deduction on salary; a resident with taxable income up to ₹12 lakh pays no tax thanks to the Section 87A rebate. Your actual tax can differ if you opt for the old regime and claim deductions.
Key inputs explained
- Annual CTC: The total cost to company stated in your offer, including employer contributions.
- Basic salary share: The portion of pay treated as basic, which drives the PF and gratuity amounts.
- Employer PF and gratuity: Contributions built into CTC that you do not receive as monthly cash.
- Professional tax: A small state levy, up to ₹2,500 a year, deducted from salary in most states.
Example calculation
Inputs
- Annual CTC
- ₹12,00,000
- Basic (50%)
- ₹6,00,000
- Employer PF (12% of basic)
- ₹72,000
Calculation breakdown
- Gross = CTC − employer PF − gratuity
- ≈ ₹11,00,000
- Employee PF (12% of basic)
- ₹72,000
- Professional tax
- ₹2,400
- Income tax (new regime, after ₹75,000 SD)
- ≈ ₹0
After removing the employer's PF and gratuity, the gross is about ₹11 lakh. Taxable income after the ₹75,000 standard deduction stays within the ₹12 lakh rebate limit, so income tax is nil, and the in-hand works out to roughly ₹85,000 a month after your own PF and professional tax.
Benefits
- Reveals your real monthly cash instead of the headline CTC.
- Lets you compare job offers with different CTC structures fairly.
- Shows how PF, professional tax and income tax each reduce your pay.
Limitations
- Uses the new-regime slabs; old-regime deductions such as 80C and HRA can change the tax.
- Assumes standard PF on basic; actual components vary by employer and CTC design.
- Professional tax differs by state, and variable pay or bonuses are not included.
Tips
- Ask for a detailed salary structure, not just the CTC, before accepting an offer.
- Compare the old and new regimes if you have large 80C, 80D or HRA claims.
- A higher basic raises PF savings but lowers your immediate take-home — balance the two.
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About this calculator
The Take-Home Salary Calculator is built and maintained by the PaisaBot team. All calculations run instantly in your browser using established financial formulas, and we use high-precision arithmetic to keep the results reliable.
Data accuracy: Interest rates, tax slabs, and scheme rules are updated periodically, but figures can change with RBI, government, and lender revisions. Always confirm the latest rates with your bank or an official source before acting.
Educational purpose: This tool is provided for general information and financial education only. It does not constitute investment, tax, or legal advice. For decisions specific to your situation, please consult a qualified financial advisor.