In-hand salary calculator
Put in the CTC from your offer letter. Get the number that will actually land in your bank account each month — with every deduction shown, so you can see exactly where the difference goes.
Free · No signup · Runs entirely in your browser · FY 2026-27 (August 2026)
Check your offer letter. Most Indian employers use 40–50%.
Insurance top-ups, canteen, NPS — anything already on your payslip.
Take-home, per month
₹61,424
₹7,37,084 a year from a ₹8,00,000 CTC — that is 92% of the number on your offer letter.
| Annual CTC | ₹8,00,000 |
| − Employer PF contribution | −₹21,600 |
| − Gratuity provision | −₹17,316 |
| Gross salary (on payslip) | ₹7,61,084 |
| − Your PF (12%) | −₹21,600 |
| − Professional tax | −₹2,400 |
| − Income tax + cess | ₹0 |
| − Other deductions | ₹0 |
| Net in hand (annual) | ₹7,37,084 |
Based on FY 2026-27 (August 2026). No HRA exemption or 80C investment is assumed, so your actual take-home may be higher. Tax rules change with every Budget — verify against current Income Tax Department guidance before making a financial decision. This is information, not financial advice.
What the calculator is actually doing
An Indian offer letter quotes Cost to Company — the total an employer spends on you in a year. Four things sit inside that number and never reach your account: the employer's 12% provident fund contribution, a gratuity provision you can only claim after five years of continuous service, any group insurance premium, and in many companies a variable or performance component that is paid annually rather than monthly.
What remains is your gross salary — the figure printed at the top of your payslip. From that, three deductions come out every month: your own 12% PF contribution, professional tax (a state levy, typically ₹200 a month, and zero in Delhi, UP, Haryana and Rajasthan), and TDS on income tax.
A worked example: ₹8 LPA
Take a ₹8,00,000 CTC with basic set at 45%, in Karnataka, under the new tax regime. Basic is ₹3,60,000. The employer contributes ₹21,600 to PF (capped at the ₹15,000 monthly wage ceiling) and provisions ₹17,316 for gratuity. Gross salary is therefore about ₹7,61,000, not ₹8,00,000.
From that gross, you lose ₹21,600 to your own PF, ₹2,400 to professional tax, and — after the ₹75,000 standard deduction, taxable income lands under the ₹12 lakh rebate threshold, so income tax is nil. Take-home works out near ₹61,000 a month. The number on the offer letter divided by twelve would have suggested ₹66,667.
Why the gap widens as your CTC grows
At ₹8 LPA, the rebate means you pay no income tax at all, so take-home is a high share of CTC. At ₹18 LPA the same structure hands a meaningful slice to tax, and take-home falls to roughly two-thirds of CTC. This is why comparing two offers on CTC alone is misleading — a job with a lower CTC but a smaller variable component can pay you more each month.
What to check on your own offer letter
- Basic as a percentage of CTC. A lower basic means lower PF and slightly higher take-home now, but less retirement saving and a smaller gratuity later.
- Variable or performance pay. If it is inside CTC, it is not guaranteed. Ask what percentage of employees actually received the full amount last year.
- Joining or retention bonus. Often has a clawback clause if you leave within 12–24 months.
- Gratuity. Legally payable after five years of continuous service. If you are unlikely to stay that long, treat it as ₹0.
Related reading
For the full breakdown of what each payslip line means, read CTC vs in-hand salary. If you are still deciding whether to accept, our guide on how to negotiate salary covers what to say and when. And before you resign anywhere, check the notice period rules in India.
Frequently asked questions
Why is my in-hand salary so much lower than my CTC?
CTC is what you cost your employer, not what you are paid. It includes the employer's PF contribution, a gratuity provision you only receive after five years, and often insurance premiums — none of which reach your bank account. On a typical ₹8 LPA offer, roughly ₹60,000–70,000 a year is employer-side cost before a single deduction is applied to your payslip.
What percentage of CTC is usually in hand in India?
For freshers on ₹4–8 LPA, take-home is commonly 78–88% of CTC. The ratio drops as CTC rises, because income tax becomes the dominant deduction. Above ₹15 LPA it is often closer to 65–72%.
Should a fresher pick the new or old tax regime?
For most freshers the new regime works out better, because it has a higher standard deduction and a rebate that makes income up to ₹12 lakh taxable at nil. The old regime only wins if you have substantial 80C investments, home loan interest, or a large HRA claim — which most people in their first year do not.
Is the ₹15,000 PF ceiling applied by every employer?
Most Indian employers cap the PF calculation at a basic of ₹15,000 a month, which fixes the contribution at ₹1,800. Some deduct 12% of your full basic instead, which raises your PF savings and lowers your take-home. Your payslip will tell you which one applies.
Does this calculator store my salary?
No. Every calculation runs in your browser. Nothing is sent to a server, nothing is stored, and there is no signup.
Why does the calculator not include HRA exemption?
HRA exemption depends on your actual rent, your city, and your basic — details this calculator does not ask for. Leaving it out means the figure it shows is a conservative floor. Your real take-home may be higher, which is the safer direction for a number you might plan around.