Free Online Tool · FY 2025-26
Enter your annual CTC and get a precise monthly take-home breakdown — including PF, Professional Tax, and income tax under New or Old Regime.
A CTC calculator converts your annual Cost to Company into the real monthly in-hand (take-home) salary credited to your bank account. The core formula is In-hand = CTC − employer PF − employee PF − professional tax − income tax (TDS). For example, on a ₹12,00,000 CTC in a metro city under the New Regime, take-home works out to about ₹96,000 a month — with zero income tax, thanks to the Section 87A rebate. Enter your CTC below for a precise FY 2025-26 breakdown under both the New and Old tax regimes.
Your Cost to Company as stated in your offer letter or CTC breakup sheet
Affects HRA percentage (50% metro / 40% non-metro) and Professional Tax rate
CTC stands for Cost to Company — the total annual expenditure an employer incurs on an employee. It includes your gross salary as well as all employer-side contributions such as Provident Fund, gratuity provisions, health insurance premiums, and other benefits.
CTC is always higher than your actual take-home salary. When a recruiter quotes a package, it is invariably the CTC — not what lands in your account. Understanding the difference saves confusion during offer negotiations.
Basic Salary
~40% of CTC
Core fixed component. Base for PF and gratuity calculations. Taxable in full under both regimes.
HRA
40–50% of Basic
House Rent Allowance. Partially exempt from tax under Old Regime if you pay rent. No exemption under New Regime.
Employer PF
12% of Basic (capped)
Goes to your EPF account, not your salary. Part of CTC but deducted before computing Gross Salary.
Allowances
Balance of CTC
Conveyance, special allowance, medical allowance, LTA. Fully taxable under New Regime; some exemptions under Old.
Gratuity Provision
~4.8% of Basic
Some employers include a monthly gratuity accrual in CTC. Paid as a lump sum after 5 years of service.
Group Health Insurance
Employer contribution
Premium paid by employer is NOT taxable in your hands — one of the most tax-efficient employee benefits.
Your take-home pay is derived from CTC through a series of mandatory deductions. Here is the exact six-step process:
Start with CTC
Your total cost to company as agreed in your employment contract or offer letter.
Subtract Employer PF
Employer's PF contribution (12% of Basic, capped at ₹1,800/month) is inside CTC but goes to your EPF account. Subtracting it gives Gross Salary.
Deduct Employee PF
Your own PF contribution (12% of Basic, capped at ₹1,800/month) is deducted from Gross. It's your money, but locked in your EPF account until withdrawal.
Deduct Professional Tax
A small state-levied tax — typically ₹200/month in metro states. Not all states levy this; Delhi has no professional tax.
Deduct Income Tax (TDS)
Your employer deducts income tax monthly based on your projected annual liability under your chosen regime. Computed on your taxable income after standard deduction and PF.
Result = In-Hand Salary
The remaining amount is your monthly take-home — what gets credited to your bank account.
All income tax figures include 4% Health and Education Cess. Surcharge applies on income above ₹50L but is not reflected here for simplicity.
New Regime (Default)
Standard deduction ₹75,000 · 87A rebate up to ₹12L taxable income
| Taxable Income | Rate |
|---|---|
| ₹0 – ₹4,00,000 | 0% |
| ₹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% |
Old Regime
Standard deduction ₹50,000 · 87A rebate up to ₹5L taxable income · HRA + 80C claimable
| Taxable Income | Rate |
|---|---|
| ₹0 – ₹2,50,000 | 0% |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
When New Regime wins
When Old Regime wins
CTC includes employer-side costs that never appear in your bank account — employer PF, gratuity provisions, and group health insurance premiums. After subtracting these, plus your employee PF deduction, professional tax, and income tax (TDS), what remains is your in-hand salary. For a ₹6 LPA CTC, take-home is typically ₹40,000–₹45,000 per month.
Yes. Most Indian employers include their 12% PF contribution — capped at ₹1,800/month (₹21,600/year) — inside the CTC figure. This money flows into your EPF account and is yours upon withdrawal, but it does not appear as monthly salary.
Under the New Regime, the Standard Deduction is ₹75,000 — an increase from ₹50,000 in FY 2023-24. Under the Old Regime, it remains ₹50,000. This is a flat deduction from gross salary before computing taxable income; no receipts or proofs are required.
Not automatically — the zero-tax rebate (u/s 87A) applies to taxable income, not CTC. Taxable income equals Gross Salary minus Standard Deduction, Employee PF, and Professional Tax. For most ₹12 LPA CTCs, deductions bring taxable income well under ₹12L, resulting in zero tax. Use the calculator above to see your exact figure.
No. ESIC applies only to employees with gross wages up to ₹21,000/month. Employee contribution is 0.75% and employer contribution is 3.25% of gross wages. If you fall in this bracket, your actual in-hand will be slightly lower than this calculator shows.
Professional Tax is a state government levy on employment income. Maharashtra charges up to ₹2,400/year, Karnataka and West Bengal charge similar amounts. Several states — including Delhi, Haryana, and Rajasthan — do not levy Professional Tax at all. The calculator uses ₹2,400/year for metro and ₹1,200/year for non-metro as a reasonable approximation.
Salaried individuals with no business income can switch tax regimes each financial year. Declare your preferred regime to your employer in April for correct TDS. If you have business or profession income, you can switch back to the Old Regime only once in your lifetime.
HRA exemption is claimable under the Old Regime if you pay rent and your employer allocates HRA in your salary structure. The calculator shows your HRA component, but does not apply the exemption since actual rent figures vary. Under the New Regime, HRA exemption is not available. Consult your CA to optimise HRA claims under the Old Regime.
For Employers
Group Health Insurance premiums paid by your employer are completely tax-free in employees' hands. It is one of the most cost-efficient ways to improve compensation without adding to tax burden. Onsurity plans start at ₹199 per employee per month.
Salary Hike Calculator
Calculate your new CTC and in-hand salary after a percentage increment
Gratuity Calculator
Find out your gratuity entitlement after 5 or more years of service
Group Health Insurance
Tax-free employee benefit that improves compensation without extra tax
HR Glossary
Definitions of CTC, gross salary, PF, ESIC, gratuity, and more
PF, ESI, PT & Gratuity Compliance
Employer guide to the statutory deductions that shape every CTC in India
Section 80D Explained
Cut taxable income with deductions on health insurance premiums (Old Regime)