Salary / CTC Calculator
Decode Your CTC: See Your Actual In-Hand Salary
Total Yearly CTC
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📊 Complete Salary Breakdown
The total package promised to you by the HR. This includes your salary and the company’s contribution to your benefits.
The core component of your salary. PF and Gratuity are calculated based on this amount.
House Rent Allowance, Special Allowances, LTA, etc. You can claim tax exemptions on HRA.
Your share (usually 12% of Basic) deducted from your gross salary and put into your PF account.
The company’s share. This is silently deducted from your total CTC before calculating your Gross Salary!
Estimated Tax Deducted at Source. Submit investment proofs (80C, Medical) to your HR to reduce this.
The actual money credited to your bank account on payday.
Shows what percentage of your CTC actually reaches your pocket. (The rest goes to PF & Taxes).
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Decode Your Payslip & CTC
Got a 12 LPA offer letter but the monthly message from your bank says only ₹75,000? Welcome to the corporate world! Let’s decode CTC vs In-hand, understand your deductions, and learn how to save maximum tax.
CTC vs In-Hand Salary (The Big Illusion)
The biggest shock for every fresh graduate is seeing their first salary credit. The HR told you that your salary is ₹6,00,000 per year (₹50,000 per month). But on payday, you only receive ₹38,000. Where did the rest of the money go? Let’s understand the terminology.
CTC (Cost to Company): This is the total amount the company spends on you. Think of it like ordering a pizza. The CTC is the total bill: The cost of the pizza + delivery charge + taxes + the cardboard box.
In-Hand (Net Salary): This is the actual pizza slice you get to eat. To get your In-Hand salary, the company removes the employer’s PF contribution (the box), your PF contribution (delivery fee), and Income Tax / TDS (taxes). What remains is what enters your bank account.
A high CTC doesn’t always mean a high monthly bank balance. Companies often inflate the CTC by adding hidden components like “Gratuity”, “Annual Bonus”, and “Health Insurance Premium”. Always ask HR for the “Take-Home” or “Net Pay” calculation before accepting an offer.
Decoding the Components of Your Salary
Your salary slip is divided into two main columns: Earnings (Money given to you) and Deductions (Money taken away from you). Here is a simple breakdown of the Earnings side:
The Deductions: Where Does the Money Go?
Now let’s look at the right side of your payslip. This is the money that is cut from your salary before it reaches you.
EPF (Provident Fund): 12% of your Basic Salary is deducted and put into your retirement account. Don’t be sad about this! The employer also matches this amount, and it earns guaranteed interest. It’s your long-term wealth.
TDS (Income Tax): Tax Deducted at Source. The company calculates your yearly tax liability, divides it by 12, and cuts it every month. If you submit investment proofs (like LIC, Mutual Funds), this deduction reduces drastically.
Professional Tax (PT): A small state government tax. Depending on the state you work in (like Maharashtra, Karnataka), around ₹200 is deducted every month.
When you join a company, HR will ask you to choose between the ‘Old Tax Regime’ and the ‘New Tax Regime’.
Simple Rule: If you don’t do any investments, don’t pay rent, and have no home loan, choose the New Regime (Tax is zero up to ₹7.5 Lakhs income). But if you pay high rent, invest ₹1.5L in 80C (PPF/ELSS), and have medical insurance, the Old Regime will save you much more tax.
CTC vs In-Hand Estimates (Real Numbers)
Here is an approximate table to help you understand what your monthly in-hand salary will look like based on different CTCs. (Note: This assumes standard PF deductions and the New Tax Regime for simplicity).
| Yearly CTC | Approx. Monthly Gross | Monthly Tax/PF Cut | Approx. Monthly In-Hand |
|---|---|---|---|
| ₹6,00,000 (6 LPA) | ₹48,000 | – ₹4,000 | ₹44,000 |
| ₹10,00,000 (10 LPA) | ₹80,000 | – ₹9,500 | ₹70,500 |
| ₹15,00,000 (15 LPA) | ₹1,20,000 | – ₹22,000 | ₹98,000 |
| ₹24,00,000 (24 LPA) | ₹1,90,000 | – ₹48,000 | ₹1,42,000 |
Many companies structure a 15 LPA offer as: ₹12 Lakhs (Fixed) + ₹3 Lakhs (Variable/Bonus). Variable pay is NOT guaranteed. It depends on company performance and your manager’s rating. When calculating your monthly budget, EMI capacity, or rent, always calculate it based ONLY on your ‘Fixed’ component.
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Use the Salary Calculator to input your exact CTC and understand your take-home pay. A smart employee doesn’t just work hard; they understand their payslip!
* The calculations and structures mentioned in this guide are for educational purposes. Exact in-hand salaries vary based on your company’s specific CTC structure, state professional tax, and your chosen tax regime (Old vs New). Tax brackets and rules are subject to change as per the Union Budget. Always consult your HR or a Chartered Accountant (CA) for precise tax planning.