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Salary / Take-Home

Break down your annual CTC into monthly take-home salary.

Last reviewed:
FY 2026–27 rules · India

Cost to company, including employer PF and gratuity.

Commonly 40% to 50%.

Up to ₹2,500 depending on your state. ₹0 in some states.

The new regime is the default unless you choose the old one.

PPF, ELSS, EPF, life insurance and so on. Capped at ₹1,50,000.

Premiums for self, family and parents.

Quick examples

Monthly in-hand salary₹88,276

From ₹12,00,000 CTC with basic at 40%, new regime.

Y1Y5Y7
Amount per yearRunning total
What you are seeing: You take home ₹10,59,312 a year — 88.3% of your CTC.
Monthly in-hand₹88,276
Gross salary₹11,19,312
Your PF per year₹57,600
Income tax per year₹0

What each result means

Monthly in-hand

What it is: Take-home after PF, professional tax and income tax.

Your value: ₹88,276

Before any voluntary deductions.

Gross salary

What it is: CTC minus employer PF and gratuity.

Your value: ₹11,19,312

What appears on your payslip as gross.

Your PF per year

What it is: 12% of basic.

Your value: ₹57,600

Goes to your EPF account.

Income tax per year

What it is: Using the selected regime.

Your value: ₹0

Includes cess.

Year-by-year breakdown

Salary Calculator (In-hand) year-by-year schedule
ComponentPer year (₹)Per month (₹)
Gross salary₹11,19,312₹93,276
Employer PF₹57,600₹4,800
Gratuity₹23,088₹1,924

Employer PF (12% of basic) and gratuity (4.81% of basic) are part of CTC but not paid monthly.

Showing the first 3 of 7 years. Want charts, formulas and the full schedule? Get the detailed PDF.

What this calculator does

Breaks your CTC into gross salary and monthly take-home: removes employer PF and gratuity, then your PF, professional tax and income tax.

What your result means

In-hand is usually 70–85% of CTC. A higher basic raises PF and gratuity, which lowers take-home now but builds savings.

Formula

1. In-hand salary

Gross = CTC − 12%·B − 4.81%·B; In-hand = (Gross − 12%·B − PT − Tax) ÷ 12

Symbols

B
Annual basic (₹)
PT
Professional tax (₹)
4.81%
Gratuity provision = 15 ÷ 26 ÷ 12

Why this formula works

Employer costs inside CTC are not paid to you each month; employee deductions come out of gross.

Unit check

₹ = ₹. ✓

Common mistakes

Dividing CTC by 12 and calling it salary.

Working for your numbers

  1. Basic = ₹4,80,000
  2. Gross = ₹12,00,000 − ₹57,600 − ₹23,088 = ₹11,19,312
  3. In-hand = ₹11,19,312 − ₹57,600 − ₹2,400 − ₹0 = ₹10,59,312

Frequently asked questions

Is this the exact tax I will pay?

It is close for common cases, but it leaves out some special incomes, exemptions and set-offs. Confirm with Form 16, AIS and the Income Tax Department's own calculator before filing.

Why is my in-hand lower than CTC ÷ 12?

CTC includes employer PF, gratuity and sometimes insurance or bonus that you do not get in your monthly pay.

Does this calculator tell me what to do?

No. It is an educational estimate using published rules. It does not know your full situation. For a personal decision, speak to a qualified tax professional or a SEBI-registered investment adviser.

Symbols and assumptions

CTC
Cost to company (₹)
B
Basic (₹)
  • Employer PF is 12% of full basic (some employers cap at ₹15,000 basic).
  • No bonus, HRA exemption or other allowances modelled.
  • Figures are in Indian Rupees (₹).

Sources and review

Reviewed 2026-10-05 · Next review 2026-12-31

Not investment advice. VIA Capital is not a SEBI-registered investment adviser and this calculator does not recommend any fund, product or investment strategy. Market-linked investments are subject to market risk; assumed returns are not indicative of future results.
Important limitation. This is an educational estimate based solely on the values and formula shown. It is not financial, tax or investment advice. Actual returns will differ from any assumed rate. Verify with a qualified financial professional before making any investment decision.
Income Tax CalculatorOld vs New RegimeHRA CalculatorTDS CalculatorAdvance Tax CalculatorCapital Gains Calculator

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How it works

Subtracts mandatory and voluntary deductions from Gross Salary to find net pay.

The formula

Net Pay = Gross - (PF + PT + Other Deductions)
CTC
Cost to Company
PF
Provident Fund

Worked example

Breaking down ₹12 LPA CTC into monthly components.

Pro tips

  • Check component structure for tax optimization.
  • HRA can significantly reduce tax.

Common mistakes

  • Ignoring professional tax and voluntary deductions.

Go deeper

Concepts to explore

Understanding Salary Slips

Related guides

Salary / Take-Home: How It Works, Formula and a Worked Example

Break down your annual CTC into monthly take-home salary. Here is the formula, a worked example, the mistakes to avoid, and a free calculator with a downloadable PDF report.

Read guide

Institutional grade calculations are illustrative and for educational wealth architecture. Results do not constitute investment advice.