In-Hand Salary Calculator
Monthly Take-Home
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Annual Take-Home
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Gross Salary
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Total Deductions
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What is a Salary Calculator?
A salary calculator helps you understand the difference between your CTC (Cost to Company) and the actual amount credited to your bank account every month — your in-hand or take-home salary. In India, there is often a significant gap between the two due to deductions like EPF, professional tax, and income tax. This calculator breaks down your CTC into its individual components so you know exactly what to expect.
CTC vs Gross Salary vs Net Salary
- CTC (Cost to Company) — The total annual cost your employer incurs for your employment. It includes your gross salary, employer's share of EPF and other benefits. CTC is the headline number on your offer letter.
- Gross Salary — CTC minus the employer's contributions (like employer EPF). This is the salary before your own deductions (employee EPF, professional tax, income tax) are subtracted.
- Net Take-Home / In-Hand Salary — Gross salary minus all employee-side deductions. This is the amount credited to your bank account each month.
Salary Components Explained
- Basic Salary — Typically 40%–50% of CTC. It is the core component on which HRA, EPF, and gratuity are calculated. A higher basic means more EPF but also potentially higher tax.
- HRA (House Rent Allowance) — Usually 20%–50% of basic salary. Partially or fully exempt from tax if you live in rented accommodation under the Old Tax Regime.
- Special Allowance — A flexible component that makes up the balance of the salary structure after fixed components. Fully taxable.
- Employee EPF — 12% of basic salary contributed by the employee. Deducted from gross salary and deposited into your EPF account. Qualifies for Section 80C deduction.
- Employer EPF — 12% of basic salary contributed by the employer. Included in CTC but not in your gross salary (it is an employer expense). Of this, 8.33% goes to EPS and 3.67% to EPF.
- Professional Tax — A state-level tax levied on salaried individuals. The maximum is ₹2,500 per year. Not all states charge professional tax; Maharashtra, Karnataka, West Bengal, and a few others do.
How to Use This Calculator
- Enter your Annual CTC as mentioned in your offer letter.
- Enter your Bonus or Variable Pay if included in the CTC figure.
- Toggle whether Employer EPF is included in your CTC (most corporate offer letters in India include it).
- Enter your Professional Tax — check your payslip for the actual amount deducted.
- The calculator instantly shows your monthly and annual take-home along with a full salary breakdown table.
Advantages of Knowing Your Salary Breakdown
- Negotiate better — understand what portion of your CTC is actually accessible income.
- Plan finances accurately by knowing your exact monthly in-hand amount.
- Identify tax-saving opportunities through HRA and EPF components.
- Compare job offers on a like-for-like basis by normalising for EPF and benefits.
- Plan for future salary hikes with realistic expectations about net increase.
Frequently Asked Questions
CTC includes costs that are not paid to you directly — most notably the employer's share of EPF (12% of basic). After removing the employer EPF from CTC, you get the gross salary. From gross salary, your own (employee) EPF contribution (12% of basic), professional tax, and income tax TDS are deducted to arrive at your take-home pay. For someone on a ₹10 lakh CTC, the take-home after EPF and professional tax (before income tax) is typically around ₹72,000–₹75,000 per month depending on salary structure. Income tax further reduces this depending on your tax regime and investments.
EPF (Employee Provident Fund) requires both you and your employer to contribute 12% of your basic salary each month. Your 12% (employee EPF) is deducted from your gross salary before it reaches your bank account. Your employer's 12% (employer EPF) is a separate cost borne by the employer — it is typically included in your CTC but is never credited to you as take-home. The combined 24% goes into your EPF account (employee share + 3.67% employer share) and the EPS account (8.33% employer share). EPF contributions build your retirement corpus and are eligible for Section 80C deduction.
Professional tax is a state-level tax levied on income from employment, business, or profession. It is deducted by the employer from your salary every month and remitted to the state government. The maximum professional tax is capped at ₹2,500 per year (₹200/month) under the Constitution. States that levy professional tax include Maharashtra, Karnataka, West Bengal, Andhra Pradesh, Telangana, Gujarat, Tamil Nadu, and a few others. States like Delhi, Haryana, Rajasthan, and UP do not charge professional tax. The professional tax paid is deductible from your taxable income under Section 16(iii).
Besides employer EPF (12% of basic), CTC can also include gratuity provisioning (4.81% of basic per year), medical insurance premium, leave travel allowance (LTA), food coupons or meal cards, and any retiral benefits. Some companies also include the cost of group insurance, ESOPs at vesting value, or accident insurance in the CTC. The actual components depend on your employer's policy. To understand what is truly liquid income, ask for the salary breakup sheet (also called the cost-to-company letter or compensation breakup) from your HR when you join.