Salary Calculator
Break down CTC into take-home salary, deductions, and in-hand components.
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Salary Calculator
Use the formula and worked example below to calculate manually.
Overview
A salary calculator converts your CTC (Cost to Company) into the actual in-hand (take-home) salary by accounting for all deductions — PF, professional tax, income tax, and other components.
How to use this calculator
- Enter your annual CTC.
- Enter any fixed allowances (HRA, LTA, etc.) included in CTC.
- Enter applicable deductions (PF, professional tax, income tax).
- The calculator shows the gross salary, total deductions, and monthly/annual take-home salary.
Understanding the inputs & results
CTC (Cost to Company)
Total annual cost incurred by the employer for an employee — includes salary, PF contribution, gratuity provision, and benefits.
Gross salary
CTC minus employer PF and gratuity contributions. This is the salary before personal deductions.
Basic salary
The core fixed component of salary, usually 40–50% of CTC. PF is calculated on this.
HRA
House Rent Allowance — exempt from income tax (partially) if you live in rented accommodation.
PF (Employee's)
12% of basic salary deducted from your pay and deposited in your EPF account.
Professional tax
A state-level tax on income from employment, typically ₹200/month (capped at ₹2,400/year).
Take-home salary
Gross salary minus all deductions — the amount credited to your bank account.
The formula
Take-home salary
Take-home = Gross Salary − PF (employee) − Professional Tax − Income Tax TDS
CTC includes the employer PF (12% of basic) and gratuity provision. Gross salary = CTC − employer PF − gratuity. Take-home = Gross − employee PF − professional tax − TDS.
Worked example
Annual CTC ₹12 lakh. Basic = ₹5 lakh. Old Regime, no major deductions.
- Employer PF = 12% of 5L = ₹60,000. Gratuity ≈ ₹24,038.
- Gross = 12L − 60K − 24K = ₹11,16,000 (annual).
- Tax on ₹11.16L gross (after 50K standard deduction) ≈ ₹1,04,520.
- Monthly take-home ≈ (11,16,000 − 60,000 PF − 2,400 PT − 1,04,520 tax) / 12 ≈ ₹78,756.
✓ Monthly take-home ≈ ₹78,756 on ₹12L CTC.
Frequently asked questions
Take-home varies significantly based on tax regime, declared investments, state professional tax slabs, and CTC structure. Confirm with your HR or payroll team.