Got a job offer or a CTC number and wondering what actually lands in your bank account each month? This free take-home salary calculator converts your CTC into your real monthly in-hand salary for FY 2025-26 — accounting for Basic pay, employer and employee PF, gratuity, professional tax, and income tax (TDS) under both the new and old regimes.

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CTC vs in-hand salary: why they’re so different

Your CTC (Cost to Company) is the total your employer spends on you in a year. But a big chunk of it never reaches you as monthly cash. Two things get removed before you even see your “gross” salary, and three more are deducted after:

• Employer PF — the company’s 12% Provident Fund contribution is part of CTC but goes to your EPF account, not your bank.
• Gratuity — provisioned at about 4.81% of Basic; you only receive it after 5 years of service.
• Employee PF — your own 12% of Basic, deducted from your salary (it’s your savings, but not monthly cash).
• Professional tax — a small state-level tax, up to ₹2,500 a year.
• Income tax (TDS) — deducted based on your chosen tax regime.

How take-home salary is calculated

1. Gross salary = CTC − Employer PF − Gratuity
2. Taxable income = Gross − standard deduction (₹75,000 new / ₹50,000 old) − any old-regime deductions
3. Take-home = Gross − Employee PF − Professional tax − Income tax

The calculator above does all of this instantly and shows a full annual-and-monthly breakdown. Tip: a higher Basic % means more PF (more forced savings, less immediate cash), while a lower Basic means more in-hand now.

Which regime gives you more in-hand?

For most salaried people, the new regime now leaves more in your pocket — income up to ₹12 lakh of taxable income is effectively tax-free thanks to the enhanced Section 87A rebate. The old regime can still win if you have large deductions (80C, HRA, home loan interest). To compare your exact numbers side by side, use our Old vs New Tax Regime Calculator. Once you know your monthly surplus, put it to work with the best investment options for salaried people and a solid monthly budget.

Frequently asked questions

What is the difference between CTC and in-hand salary?

CTC is the total a company spends on you, including parts you never receive as monthly cash — like the employer PF contribution and gratuity. In-hand (take-home) salary is what actually reaches your bank account after all deductions.

How much is the in-hand salary for 12 LPA?

Roughly ₹85,000 per month under the new regime, depending on your salary structure. Because taxable income up to ₹12 lakh is effectively tax-free under the new regime, most of the gap between CTC and in-hand comes from PF and gratuity rather than income tax.

Is PF part of take-home salary?

No. Your employee PF is deducted before you are paid, so it is not part of your monthly in-hand salary. It is still your money — it grows in your EPF account — but you receive it later, not each month.

Does this calculator include bonus or variable pay?

No — enter your fixed CTC. Bonuses and variable pay are usually paid and taxed separately, so excluding them gives a more accurate monthly in-hand figure.

Is this take-home calculation accurate?

It uses the correct FY 2025-26 rules — PF at 12% of Basic, gratuity at 4.81%, the standard deduction, §87A rebate, surcharge and 4% cess. Actual figures vary with your employer’s exact salary structure and your state’s professional tax, so treat it as a close estimate, not tax advice.