CTC to in-hand calculator

In India, job offers usually quote the Cost to Company (CTC), the total annual amount the employer spends on you. The salary credited to your bank account each month is much lower, because CTC includes employer contributions and deductions such as provident fund and taxes. This calculator breaks a CTC into its components and estimates your monthly take-home pay.

How to use it

1. Enter the annual CTC.
2. Set the basic salary percentage, often 40 to 50% of CTC.
3. Set HRA, PF and other options to match your offer letter.
4. Read the monthly gross, deductions and net in-hand salary.

What reduces CTC to take-home

• Employer PF: 12% of basic (commonly capped at a basic of 15,000 per month) is part of CTC but goes to your PF account.
• Gratuity: often included in CTC at about 4.81% of basic, paid only after 5 years of service.
• Employee PF: another 12% of basic deducted from your salary.
• Professional tax: a state tax of up to 2,500 per year.
• Income tax (TDS): depends on the tax regime and your declarations.

Worked example

CTC 12,00,000 with basic at 40% (4,80,000 per year, 40,000 per month). Employer PF at 12% of basic = 4,800 per month and gratuity about 1,924 per month are part of CTC but not paid monthly, leaving a monthly gross of about 93,276. Deducting employee PF of 4,800, professional tax of 200 and estimated TDS gives an in-hand amount in the region of 80,000 to 84,000, depending on the tax regime.

Note

Tax rules change with each Union Budget. Use this for planning and confirm figures with your payroll team.