Annual deductions from your CTC:
- Employer EPF (in CTC, not in your bank): ₹72,000
- Employee EPF (12% of basic): ₹72,000
- Income tax (new regime, FY 2026-27): ₹0
- Professional tax: ₹2,400
Simplified model: basic set to your chosen % of CTC (the new labour codes push employers toward 50%), EPF at 12% on both sides, ₹200/month professional tax, and income tax under the FY 2026-27 new regime. Gratuity accrual, variable pay, ESOPs, and old-regime deductions aren't modeled - actual in-hand depends on your company's salary structure. Not tax advice.
Convert CTC to In-Hand Salary
The Tools Kit's free CTC to In-Hand Calculator turns the cost-to-company figure on an Indian offer letter into the salary that actually reaches your bank account each month. Enter your annual CTC and basic salary percentage, and it works out your monthly take-home salary after employer and employee EPF, income tax under the FY 2026-27 new regime, and professional tax, with a full annual breakup.
A ₹12 lakh CTC with basic at 50% comes to about ₹87,800 in-hand per month, not the ₹1 lakh that CTC ÷ 12 suggests, even though income tax at that level is zero. The two EPF contributions account for almost the entire gap.
How to Use the CTC to In-Hand Calculator
- 1
Enter your annual CTC
Type the total cost-to-company figure from your offer letter in rupees, for example 1200000 for a ₹12 lakh package. Commas and spaces are ignored.
- 2
Set the basic salary percentage
Enter basic pay as a percent of CTC. It defaults to 50%, the level the new labour codes push employers toward; check the salary structure annexure in your offer for the exact figure.
- 3
Read your in-hand salary
Monthly in-hand, monthly CTC and annual in-hand salary update instantly as you type.
- 4
Review the deduction breakup
Below the results, the annual breakup shows employer EPF, employee EPF, new-regime income tax and professional tax, so you can see exactly where the gap between CTC and take-home comes from.
Everything is calculated in your browser, with no signup and no data sent to a server.
CTC to In-Hand Salary Formula
The calculator follows a transparent, step-by-step salary breakup:
- Basic salary = CTC × basic %
- Employer EPF = 12% of basic (part of CTC, paid into your provident fund)
- Gross salary = CTC − employer EPF
- Employee EPF = 12% of basic, deducted from your pay
- Income tax = new-regime tax on gross salary after the ₹75,000 standard deduction, plus 4% cess
- Professional tax = ₹2,400 a year (₹200 a month)
- Annual in-hand = gross − employee EPF − income tax − professional tax
- Monthly in-hand = annual in-hand ÷ 12
Worked example for ₹15 lakh CTC at 50% basic: basic is ₹7,50,000, so each EPF side is ₹90,000. Gross salary is ₹14,10,000 and taxable income is ₹13,35,000. New-regime tax is ₹20,000 (5% on ₹4-8 lakh) + ₹40,000 (10% on ₹8-12 lakh) + ₹20,250 (15% on ₹1,35,000) = ₹80,250, plus ₹3,210 cess = ₹83,460. In-hand is ₹14,10,000 − ₹90,000 − ₹83,460 − ₹2,400 = ₹12,34,140 a year, or about ₹1,02,845 a month.
To see the income tax part on its own, or to compare it with the old regime and your deductions, use the income tax calculator for India.
In-Hand Salary for Common CTC Packages
Figures below are from this calculator with basic at 50% of CTC, FY 2026-27 new-regime tax and ₹200 a month professional tax.
| Annual CTC | EPF (each side) | Income tax | Annual in-hand | Monthly in-hand |
|---|---|---|---|---|
| ₹6 lakh | ₹36,000 | ₹0 | ₹5,25,600 | ₹43,800 |
| ₹10 lakh | ₹60,000 | ₹0 | ₹8,77,600 | ₹73,133 |
| ₹12 lakh | ₹72,000 | ₹0 | ₹10,53,600 | ₹87,800 |
| ₹15 lakh | ₹90,000 | ₹83,460 | ₹12,34,140 | ₹1,02,845 |
| ₹18 lakh | ₹1,08,000 | ₹1,28,336 | ₹14,53,264 | ₹1,21,105 |
| ₹25 lakh | ₹1,50,000 | ₹2,79,500 | ₹19,18,100 | ₹1,59,842 |
Up to ₹12 lakh, take-home is about 12% below CTC ÷ 12 because only EPF and professional tax are deducted. From ₹15 lakh onward income tax starts to bite, and at ₹25 lakh the monthly in-hand of ₹1,59,842 is roughly 23% below the ₹2,08,333 monthly CTC. To express the gap as a percentage for your own package, the percentage calculator does it in one step.
How Basic Salary and EPF Change Your Take-Home Pay
Both EPF contributions are a percentage of basic, so the basic share of your CTC changes your in-hand salary even when the CTC stays the same. At ₹12 lakh CTC, 40% basic gives about ₹90,200 a month in-hand, while 50% basic gives about ₹87,800. The new labour codes push employers toward wages of at least 50% of CTC, which is why many salary structures were revised and why the calculator defaults to 50%.
A lower in-hand figure from a higher basic is not money lost: both EPF shares build your retirement corpus. The calculator applies 12% to your full basic salary and does not cap it at the ₹15,000 EPF wage ceiling, so if your employer restricts EPF to ₹1,800 a month, your real take-home will be higher than shown. If you plan to invest part of your monthly salary, the SIP calculator shows what a regular monthly investment could grow to.
What the Calculator Does Not Include
This is a deliberately simple model. Gratuity accrual, variable pay and performance bonus, ESOPs, insurance premiums, HRA and other old-regime exemptions, and state-specific professional tax rates are not modeled. If your offer letter lists a variable component or gratuity inside CTC, subtract it from the CTC you enter to see the fixed monthly salary you can rely on. It is an estimate for comparing offers, not tax advice; your payslip depends on your employer's actual salary structure.
Common uses
- Checking the real monthly take-home before accepting a job offer
- Comparing two offers with the same CTC but different basic salary splits
- Negotiating a salary hike based on in-hand pay rather than CTC
- Sanity-checking your first payslip against the offer letter
- Budgeting a home or car loan around your actual monthly salary with the EMI calculator
- Converting a monthly salary into an effective hourly rate with the salary to hourly calculator
To see how rising prices affect the value of a salary over time, try the inflation calculator, or browse all of The Tools Kit's free calculators.
CTC and salary terms explained
| Term | What it means here |
|---|---|
| CTC (cost to company) | Everything the employer spends on you in a year, including amounts that never reach your bank account, such as the employer EPF contribution |
| Basic salary | The fixed core of your pay; EPF is calculated as a percentage of it |
| Gross salary | CTC minus the employer EPF share: the amount actually payable to you before your own deductions |
| Employee EPF | Your 12% contribution to the Employees’ Provident Fund, deducted from your pay every month |
| Employer EPF | The employer’s matching 12% contribution; it is part of CTC but goes to your provident fund, not your salary |
| Professional tax | A small state-levied tax on employment; this calculator uses ₹200 a month (₹2,400 a year) |
| Standard deduction | A flat ₹75,000 deducted from salary income before new-regime tax is worked out |
| Section 87A rebate | A rebate of up to ₹60,000 that makes new-regime tax zero when taxable income is ₹12 lakh or less |
| In-hand / take-home salary | What is credited to your bank account after every deduction |
Frequently Asked Questions
Start with CTC and subtract the employer EPF share (12% of basic) to get gross salary. From gross, subtract your own EPF (another 12% of basic), professional tax (₹2,400 a year here) and income tax under the FY 2026-27 new regime. Divide what is left by 12 for monthly in-hand salary.
About ₹87,800 a month with basic at 50% of CTC. Employer EPF of ₹72,000 is taken out of the CTC, leaving ₹11,28,000 gross. Your own ₹72,000 EPF and ₹2,400 professional tax come off that, and income tax is zero because taxable income after the ₹75,000 standard deduction is ₹10,53,000, below the ₹12 lakh rebate limit.
About ₹1,02,845 a month with 50% basic. Gross salary is ₹14,10,000, taxable income is ₹13,35,000, and new-regime income tax including 4% cess comes to ₹83,460 a year, on top of ₹90,000 employee EPF and ₹2,400 professional tax.
CTC is the cost to the employer, not your pay. It includes the employer EPF contribution, which goes to your provident fund, and often gratuity accrual, insurance and variable pay. Your own EPF, professional tax and income tax are then deducted from what remains. In this calculator’s model, the monthly in-hand figure is about 12% below CTC ÷ 12 for packages up to about ₹13.5 lakh at 50% basic, and the gap widens as income tax starts to apply.
Yes. EPF on both sides is 12% of basic, so a higher basic sends more of the same CTC into your provident fund. At ₹12 lakh CTC, 40% basic gives about ₹90,200 a month in-hand, while 50% basic gives about ₹87,800. The difference is not lost; it is saved in your EPF account.
Only the FY 2026-27 new tax regime, the default regime for salaried taxpayers: a ₹75,000 standard deduction, slabs of 0% up to ₹4 lakh rising to 30% above ₹24 lakh, the Section 87A rebate up to ₹12 lakh of taxable income with marginal relief, surcharge for high incomes and 4% cess. Old-regime deductions such as 80C, HRA and home-loan interest are not applied.
Tax is zero when taxable income is ₹12 lakh or less. For a salaried person that means gross salary up to ₹12.75 lakh after the ₹75,000 standard deduction. Because this calculator removes employer EPF from CTC first, at 50% basic a CTC of roughly ₹13.5 lakh still shows zero income tax.
Yes, in most Indian offer letters. The employer’s 12% EPF contribution is counted inside CTC, but it is paid into your provident fund rather than your salary account, which is why the calculator subtracts it before working out gross pay.
No. It takes 12% of your full basic salary on both the employee and employer side. Some employers cap EPF at 12% of ₹15,000 (₹1,800 a month); if yours does, your actual in-hand salary will be higher than the figure shown.
Gratuity accrual, variable pay or performance bonus, ESOPs, insurance premiums, HRA or other old-regime exemptions, and state-specific professional tax rates are not modeled. If your CTC includes a large variable or gratuity component, subtract it from the CTC you enter for a closer monthly figure.
No. The calculation runs in your browser as you type, with no server request, and nothing you enter is stored.
Reviewed by Raja Jahangir · Last reviewed: October 2026
How do you calculate in-hand salary from CTC?
In-hand salary is CTC minus the employer EPF share, your own 12% EPF on basic, professional tax of about ₹200 a month, and income tax under the new regime. With basic at 50% of CTC, a ₹12 lakh package pays zero income tax and leaves about ₹87,800 a month in-hand.
Why is in-hand salary lower than CTC?
CTC is the total cost to the employer, so it bundles amounts you never see as cash: the employer's EPF contribution, gratuity accrual, insurance premiums, and sometimes variable pay. Subtract those, then your own EPF, professional tax, and income tax, and the monthly bank credit is about 12% below CTC divided by twelve on a ₹12 lakh package.
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