Calculate your in-hand salary, income tax and complete CTC breakup for FY 2025-26 in seconds
Formatted: ₹10,00,000
📊
Ready to Calculate Your Taxes?
Enter your income details and select a tax regime to get started.
CTC Calculator: Turn Your CTC Into Real Take-Home Salary
Ever received an offer letter, felt great about the CTC number, and then wondered why your bank credit looks so much smaller? You're not alone. Cost to Company (CTC) is the total amount an employer spends on you in a year, but your actual take-home salary is what's left after tax, provident fund, professional tax and other deductions. Our free CTC calculator bridges that gap, instantly converting your annual package into a clear monthly and yearly in-hand figure.
Built for salaried professionals in India, this salary calculator is updated for the FY 2025-26 (AY 2026-27) income tax rules, so the numbers you see reflect the latest slabs and the enhanced new-regime rebate. Enter your CTC once and see exactly where every rupee goes.
Why Use a CTC and Take-Home Salary Calculator?
A good salary calculator does far more than crunch numbers, it helps you make confident money decisions. Here's what you gain:
Know your real in-hand pay: See your accurate monthly and annual take-home salary before you accept an offer or plan a big purchase.
Compare tax regimes side by side: Instantly find out whether the old or new tax regime saves you more.
Negotiate smarter: Understand how basic pay, HRA and bonus affect your net salary so you can negotiate your CTC structure, not just the headline figure.
Plan investments and EMIs: A reliable in-hand number makes it easier to budget for SIPs, rent, loans and tax-saving investments.
Save time: Skip the spreadsheets, get an instant, error-free salary breakup in one click.
How the CTC Calculator Works
Our calculator is designed to be simple enough for a first-time job seeker and detailed enough for a finance-savvy professional. Just follow three steps:
Enter your CTC: Add your annual cost to company and, if applicable, your bonus as a fixed amount or a percentage.
Choose your tax regime: Select the old or new regime and add eligible deductions such as HRA, EPF and Section 80C investments.
Get your instant breakdown: View your gross salary, income tax, EPF, professional tax and final take-home pay, month by month.
Factors That Affect Your Take-Home Salary and Income Tax
Two people with the same CTC can take home very different amounts. These are the key factors that shape your final salary:
1. Your chosen tax regime
Under the new tax regime for FY 2025-26, income up to ₹12 lakh is effectively tax-free thanks to the enhanced Section 87A rebate. Add the ₹75,000 standard deduction and salaried employees earning up to ₹12.75 lakh can pay zero income tax. The old regime, on the other hand, rewards those with significant deductions like HRA, home loan interest and 80C investments. Not sure which fits you? Our tax comparison chart makes the choice clear.
2. Salary structure (basic pay vs allowances)
A higher basic salary increases your EPF contribution and gratuity but can raise taxable income if allowances aren't optimised. The split between basic pay, HRA and special allowance directly influences both your deductions and your take-home pay.
3. Statutory deductions (EPF, professional tax, TDS)
Your Employees' Provident Fund contribution, state professional tax (up to ₹2,500 a year) and tax deducted at source (TDS) all reduce your monthly credit, even though EPF is really long-term savings working in your favour.
4. Exemptions and tax-saving investments
HRA exemption under Section 10(13A), LTA, and deductions under Sections 80C, 80D and 80CCD(1B) can meaningfully lower your tax outgo under the old regime. Explore these in our tax planning tools.
Smart Tips to Maximise Your Take-Home Salary
Pick the right regime every year: Your ideal regime can change with your income and investments, so re-evaluate it each financial year.
Claim your HRA correctly: If you live in rented accommodation, keep rent receipts and your landlord's PAN (for annual rent above ₹1 lakh) to claim the full exemption.
Use the full ₹1.5 lakh 80C limit: EPF, ELSS, PPF and life insurance premiums all count, if you're on the old regime.
Don't ignore NPS: An extra ₹50,000 deduction under Section 80CCD(1B) is available over and above 80C.
Model your next raise: Before your appraisal, use our salary hike calculator to see how a percentage increase translates into real take-home gains.
Ready to see your numbers? Scroll back up and enter your CTC in the calculator, then explore our full suite of salary and tax tools to plan your finances with confidence.
Understanding Your Salary Components in India
Use this simple tool to see what makes up your salary in India—like basic pay, allowances, deductions, and your take-home amount.
What are Salary Components in India?
The employer makes regular payments to the employee for the work done. Such regular payment is termed as the salary. The employment contract specifies the wages, usually made each month. The components of the salary structure are:
Basic Salary: The employee's basic income is around 40%-50% of the total salary. The employer pays the employee for his skill, experience, and qualifications. The basic salary is a fixed component of the CTC (Cost To Company) package.
House Rent Allowance (HRA): It is the component of the salary offered by the employer to the employees who reside in rented accommodation. The house rent allowance or HRA is partially or fully exempt from taxes under Section 10(13A) of the Income Tax Act. However, HRA is fully taxable if you don't live in rented accommodation.
Leave Travel Allowance (LTA): The employer gives an allowance to the employee for travel expenses called the leave travel allowance. Employees must submit proof of travel to claim the allowance. A salaried employee can claim the LTA exemption under Section 10(5) of the Income Tax Act.
Special Allowance: The component in your salary structure called the special allowance is fully taxable in your salary.
Bonus: The employer may pay a performance incentive to the employee called the bonus. It is a part of the gross salary and is fully taxable in the employee's hands.
Employee contribution to the provident fund: Both the employer and the employee contribute 12% of the employee's basic salary each month to the EPF or employee provident fund. The contribution made by the employee towards the EPF is available for a deduction under Section 80C of the Income Tax Act, 1961.
Professional Tax: Professional tax is the tax on employment levied by the state. The state can charge the maximum amount of Rs 2,500 as a professional tax in a financial year.
CTC to Take-Home Salary: A Worked Example
Our CTC calculator helps you understand your complete salary structure by calculating various components:
Calculate your total Cost to Company (CTC)
Determine your gross salary after deductions
Compute your take-home salary
Understand tax implications and exemptions
Calculate EPF and other statutory deductions
To calculate the take-home salary, you must enter the Cost To Company (CTC) and the bonus, if any, as a fixed amount or a percentage of the CTC.
CTC Calculator Example
For example, your Cost To Company (CTC) is Rs 8 lakh. The employer gives you a bonus of Rs 50,000 for the financial year. Then your total gross salary is Rs 8,00,000 – Rs 50,000 = Rs 7,50,000 (the bonus is deducted from the Cost to Company).
The gross salary deducts the professional tax of Rs 2,400 a year (this is the professional tax in Karnataka). It then deducts the contributions of both the employer and you (employee) towards the Employee Provident Fund (EPF).
EPF contribution is computed on a maximum salary limit of Rs 15,000 per month. It translates to 12% of Rs 15,000 = Rs 1,800 a month or Rs 21,600 per year.
So, you have Rs 21,600 as a yearly contribution made by the employee towards the EPF and a similar contribution of Rs 21,600 by the employer towards the EPF (8.33% of the employer's contribution gets diverted to the employee pension scheme). In addition, you also have a yearly deduction of Rs 3,000 towards employee insurance.
Total Deductions = Professional tax + EPF (Employee Contribution) + EPF (Employer Contribution) + Employee Insurance.
