Salary Calculator (In-Hand)
Estimate your monthly in-hand salary from your annual CTC.
Salary Breakdown
Enter detailed package info to get a monthly breakdown.
CTC vs Take-Home Salary Calculator: The Definitive Guide
When you receive a job offer in India, the most highlighted number is the CTC (Cost to Company). However, the actual amount credited to your bank account at the end of the month—your in-hand or take-home salary—is always significantly lower. The Calculay Salary Calculator bridges this gap instantly by computing your precise monthly take-home pay after legally required deductions.
What Does CTC Include?
CTC represents the total direct and indirect cost an employer incurs on you annually. It consists of:
- Direct Benefits (Gross Salary): Basic Salary, Dearness Allowance (DA), House Rent Allowance (HRA), Transport Allowance, Leave Travel Allowance (LTA), and Special Allowances.
- Indirect Benefits: Employer’s contribution to Provident Fund (EPF), Gratuity, Medical Insurance Premium, and sometimes meal coupons.
Why is In-Hand Salary Different from Gross Salary?
To calculate your take-home pay, four major components are deducted directly from your Gross Salary each month:
- Employee Provident Fund (EPF): Generally 12% of your Basic Salary + DA. A portion of this amount generates compound interest for your retirement.
- Income Tax (TDS): Tax Deducted at Source based on your estimated annual tax liability (Old vs New Regime).
- Professional Tax (PT): A small state-level tax levied by most Indian states, capping at ₹2,500 annually (around ₹200/month).
- Employee State Insurance (ESI): Only applicable if your gross salary is below ₹21,000 per month.
Example: Calculating Take-Home Salary
Suppose your offer letter states a CTC of ₹12,00,000 (₹12 Lakhs/year).
- If the employer's EPF contribution is ₹21,600/year and Gratuity is ₹10,000/year, your Gross Salary becomes ₹11,68,400/year (₹97,366/month).
- Deducting Employee EPF: ₹1,800/month
- Deducting Professional Tax: ₹200/month
- Deducting TDS (approx. New Regime): ₹7,600/month
Your final In-Hand Salary amounts to exactly ₹87,766 per month. The ₹1 Lakh discrepancy between CTC / 12 and the in-hand amount is exactly why using an online salary calculator is crucial during job negotiations.