Salary Calculator
Break down your CTC into take-home pay with detailed earnings and deductions.
Earnings
= ₹ 18,000/month
Deductions
Net Monthly (Take-Home)
₹ 40,950
Net Yearly (Take-Home)
₹ 4,91,400
Total Monthly Deductions
₹ 2,250
Total Annual Deductions
₹ 27,000
Formula for Take-Home Salary Calculation
Take-Home = Gross Salary − (Income Tax + Employee PF + Professional Tax)
Gross Salary = CTC − Employer Contributions − Bonuses
Income Tax = Based on Old/New Tax Regime (FY 2025-26)
PF = 12% of Basic Pay (capped at ₹15,000)
Professional Tax = ₹200 (on average, state dependent)
Income Tax Slabs for FY 2025-26 (New Regime)
| Income Range (₹) | Tax Rate (%) |
|---|---|
| 0 – 3,00,000 | Nil |
| 3,00,001 – 7,00,000 | 5% |
| 7,00,001 – 10,00,000 | 10% |
| 10,00,001 – 12,00,000 | 15% |
| 12,00,001 – 15,00,000 | 20% |
| Above 15,00,000 | 30% |
What Is a Salary Calculator and How Does It Work?
A salary calculator (also called a take-home salary calculator or in-hand salary calculator) is a free online tool that converts your Cost to Company (CTC) into your actual monthly and annual take-home pay. It factors in all standard deductions — EPF contributions, professional tax, income tax (TDS), and other deductions — to give you the net amount that hits your bank account every month. Use the CTC to in-hand salary calculator above to enter your CTC, adjust your bonus and allowances, and instantly see your salary breakdown for FY 2025-26.
CTC vs. Gross Salary vs. In-Hand Salary — What's the Difference?
| Feature | CTC (Cost to Company) | Gross Salary | In-Hand / Take-Home Salary |
|---|---|---|---|
| What It Means | Total amount the employer spends on you — includes salary + employer PF + gratuity + benefits | CTC minus employer contributions and non-cash benefits | Gross salary minus all employee deductions (EPF, professional tax, income tax) |
| Gap from CTC | — | 5–10% lower than CTC | 15–25% lower than CTC (depends on income slab, city, and tax regime) |
What It Means
Gap from CTC
What Deductions Are Included in Salary Calculation in India?
Your in-hand salary is calculated after the following deductions:
12% of basic salary, capped at ₹1,800/month (based on ₹15,000 salary limit)
₹150–₹200/month, varies by state
Based on your annual taxable income under the Old or New Tax Regime
If applicable, deducted by employer
Loans, voluntary NPS contributions, etc.
How to Calculate In-Hand Salary from CTC — Step by Step
Step 1: Start with your annual CTC
Step 2: Subtract employer's PF contribution (12% of basic, max ₹21,600/year) and gratuity
Step 3: This gives you your Gross Salary
Step 4: From Gross Salary, subtract employee PF, professional tax, and income tax
Step 5: The result is your net take-home / in-hand salary
Example — ₹6 LPA CTC:
| Component | Amount |
|---|---|
| Annual CTC | ₹6,00,000 |
| Gross Salary | ₹5,18,400 |
| Employee EPF | ₹21,600/year |
| Professional Tax | ₹2,400/year |
| Income Tax (New Regime) | ₹0 (below ₹7L threshold) |
| Annual Take-Home | ₹4,94,400 |
| Monthly Take-Home | ₹41,200 |
Old Tax Regime vs. New Tax Regime — Which Gives Higher In-Hand Salary?
Under the New Tax Regime (FY 2025-26), income up to ₹7,00,000 is effectively tax-free due to the rebate under Section 87A. This means most salaried individuals earning under ₹7 LPA take home more under the new regime. For incomes above ₹7 LPA, the better regime depends on your deductions — if you claim HRA, 80C, and 80D, the Old Regime can be more beneficial. Use the salary calculator above to compare both regimes for your specific CTC.
How Can a Salary Calculator Help with Financial Planning?
Knowing your exact in-hand salary is the foundation of good financial planning. It helps you:
- Set a realistic monthly budget
- Decide how much EMI you can comfortably afford
- Plan SIP investments and emergency funds
- Evaluate and compare job offers on actual take-home, not just CTC
If you're planning to take a personal loan, your net monthly salary directly determines your loan eligibility and the EMI amount you can manage. Use Cready's Loan Eligibility Calculator to check how much you can borrow based on your take-home salary.
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