In-Hand Salary Calculator
Updated August 2026 · Free · No sign-up
Calculate your in-hand salary from CTC — the monthly amount that actually hits your bank account after PF, professional tax, and TDS, with the CTC-to-take-home breakdown Indian offer letters never show clearly.
Quick answer: In-hand ≈ CTC − employer PF − gratuity provision − employee PF − professional tax − income tax (TDS). A ₹12 LPA CTC typically yields ₹80,000-88,000/month in hand (new regime) — roughly 80-88% of CTC ÷ 12, depending on structure.
The CTC Waterfall
CTC (cost to company) is not your salary — it's everything you cost, including money you never see monthly:
| Layer | Typical amount |
|---|---|
| CTC | The offer-letter headline |
| − Employer PF (12% of basic) | Yours, but locked in EPF — not in-hand |
| − Gratuity provision (~4.81% of basic) | Payable only after 5 years (gratuity calculator) |
| − Variable pay / bonus | Paid annually/quarterly if at all — exclude from monthly math |
| = Gross salary | What payroll runs on |
| − Employee PF (12% of basic) | Also yours, also locked (PF calculator) |
| − Professional tax | ₹200/month typical (state-dependent, ₹2,400-2,500/yr) |
| − TDS (income tax) | Regime + slab dependent |
| = In-hand salary | The bank-account number |
Worked Example — ₹12 LPA CTC (40% basic, new regime)
Basic ₹4.8L → employer PF ₹57,600 + gratuity ₹23,088 come off the top: gross ≈ ₹11.19L. Employee PF ₹57,600, professional tax ₹2,400, income tax ≈ ₹63,000 (new-regime slabs after standard deduction) → annual in-hand ≈ ₹9.96L = ~₹83,000/month. The offer said "1 lakh/month CTC"; the bank sees 83k.
New vs Old Regime (The 30-Second Version)
The new regime has lower slab rates, a bigger standard deduction, and is the default — best for people without large deductions. The old regime still wins for heavy deducters: 80C maxed (₹1.5L), HRA exemption on metro rent, home-loan interest, 80D. Rule of thumb: total annual deductions above roughly ₹4-4.5L favor old; below that, new. Rates change with budgets — verify the current year's slabs.
Negotiating CTC Like You Know the Waterfall
- Ask for the salary structure, not just CTC: two ₹12L offers with 30% vs 50% basic differ in PF outflow, gratuity, HRA exemption capacity, and in-hand by thousands per month.
- Variable pay discount: treat variable as 50-70% likely at target — a ₹12L fixed beats ₹13L with ₹2L variable for cash-flow certainty.
- Joining bonus vs base: one-time money is one-time; base compounds through every hike percentage forever.
- ESOP/RSU lines in CTC: paper value at company-chosen assumptions — evaluate separately, never as in-hand.
Why Your In-Hand Changes Mid-Year
TDS is projected annually and trued up monthly — proof submissions (rent receipts, 80C), bonus months, and regime switches all shift the monthly deduction. A March paycheck dip usually means under-deducted TDS catching up. LOP days also cut the month's gross directly — that math lives in the LOP calculator.
Quick Reference (approx. monthly in-hand, new regime, 40% basic)
| CTC | In-hand/month | CTC | In-hand/month |
|---|---|---|---|
| ₹6 LPA | ~₹44-46k | ₹18 LPA | ~₹1.18-1.25L |
| ₹9 LPA | ~₹64-67k | ₹24 LPA | ~₹1.52-1.62L |
| ₹12 LPA | ~₹82-88k | ₹36 LPA | ~₹2.15-2.3L |
Frequently Asked Questions
How do I calculate in-hand salary from CTC?
Strip employer PF and gratuity to get gross, then deduct employee PF (12% of basic), professional tax, and TDS. In-hand typically runs 80-88% of CTC ÷ 12.
Why is my in-hand so much lower than CTC ÷ 12?
CTC includes employer PF, gratuity provision, variable pay, and sometimes insurance/ESOP values — money you never see monthly.
What is a good basic salary percentage?
40-50% of CTC is standard. Higher basic = more PF savings and HRA exemption capacity but lower monthly cash; lower basic reverses the trade.
Which tax regime gives more in-hand salary?
New regime for most people without heavy deductions; old regime wins when 80C + HRA + home-loan interest exceed roughly ₹4-4.5L annually. Verify current-year slabs.
Is employer PF part of my salary?
It is your money — but it goes to your EPF account, not your bank. Counting it in CTC is why offers look bigger than paychecks.
Why did my in-hand salary drop in March?
Year-end TDS true-up — under-deducted tax from missed proof submissions or bonuses catches up in the final months.
✓ Formula verified • Last updated: August 20, 2026