CTC to In-Hand Salary Calculator for Freshers

An offer letter quotes the CTC, the cost to company, but the amount that reaches your bank account each month is lower. Part of the CTC is paid to the provident fund and gratuity, and income tax is deducted from the rest. Enter your CTC below to see an estimate of your monthly in-hand salary. Nothing is saved and you do not need an account.

Calculate your monthly take-home

Type your annual CTC and adjust the basic pay percentage, variable pay and tax regime to match your offer letter. The result updates as you type.

How CTC becomes in-hand salary

1. Start with the annual CTC in your offer letter.
2. Subtract the employer's share of PF and the gratuity. Both are part of the CTC but are not paid to you each month. This gives your gross salary.
3. Subtract your own PF contribution and the professional tax.
4. Work out income tax on the gross salary after the standard deduction. In the new tax regime the standard deduction is 75,000, and there is no tax up to 12 lakh of taxable income because of the section 87A rebate.
5. Add 4 percent health and education cess to the tax, subtract it, and divide the rest by 12 for the monthly figure.

Examples at common fresher packages

These use the default settings of the calculator: new tax regime, basic pay at 50 percent of the CTC, PF on the full basic, no variable pay and professional tax of 2,400 a year.

Why your basic pay matters now

India's new labour codes took legal effect on 21 November 2025 and broadly ask that basic pay and dearness allowance make up at least half of total pay. A higher basic raises your PF and gratuity, so the monthly in-hand amount can fall a little while the CTC stays the same, and your retirement savings and gratuity rise. Compare two offers on in-hand pay and on basic pay, not on CTC alone. The basic percentage field lets you test either structure.

Which offer is better on take-home?

Run each offer through the calculator with its own basic pay percentage and variable pay. A lower CTC with a fixed monthly pay can leave you with more money each month than a higher CTC where much of the package is variable or sits in benefits. The in-hand figure is only one factor; location, role, growth and the company's hiring process matter as well.

What this calculator assumes

• Income tax rules for FY 2026-27, checked in November 2026. Slabs and the standard deduction can change in a future budget, so confirm current rates on incometax.gov.in.
• The employer PF and gratuity are inside your CTC. The employer PF is 12 percent of the basic pay and the gratuity is 4.81 percent of the basic pay.
• Your PF deduction is 12 percent of the basic pay. If your employer caps PF at the 15,000 a month wage ceiling, untick the full-basic option and the PF is limited to 1,800 a month.
• Variable pay is counted as paid in full. If your company pays less, your real take-home will be lower.
• Professional tax is state dependent. The default is 2,400 a year, which is 200 a month; change it to match your payslip.
• Surcharge is not modelled. It applies only above taxable income of 50 lakh, which is outside what this tool is meant for.
• It is an estimate for planning. Your payslip is the final word, because employers may add components such as a food allowance or a different PF base.

Common questions

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

CTC is the total cost to the company: salary plus employer PF, gratuity and any other benefits. In-hand salary is what is credited to your bank account each month after PF, professional tax and income tax are taken out.

Is there any income tax on a 6 lakh CTC?

Under the new tax regime there is no income tax up to 12 lakh of taxable income because of the section 87A rebate, so a 6 lakh CTC pays no income tax. Your in-hand salary is then reduced only by the PF and professional tax.

Why is my in-hand salary lower than CTC divided by 12?

Because the employer PF and gratuity are part of the CTC but are not paid out monthly, and your own PF and professional tax are also deducted. The examples table on this page shows the monthly in-hand figure for common fresher packages.

Should I choose the old or the new tax regime?

The new regime has lower rates and no deductions, and the old regime allows deductions such as 80C and HRA. If you have little to claim, the new regime usually leaves more in hand. Enter your deductions in the old regime option to compare the two for your numbers.

Does PF reduce my salary?

Your PF contribution is deducted from your monthly pay, but it is your own money, saved in your PF account and earning interest. The employer's matching contribution is part of the CTC.

When do I receive the gratuity?

Gratuity is generally paid when you leave after at least five years with an employer, although the new labour codes allow it sooner for fixed-term employees. It is not part of the monthly in-hand amount.

How accurate is this calculator?

It is an estimate that follows the standard rules. Employers differ in how they split the CTC, so your payslip can differ by a few hundred rupees a month. Use the calculator to compare offers, and use your payslip for the exact figure.

Related resources

• What CTC means
• In-hand salary explained
• Probation period explained
• HR interview questions
• Online assessment practice