CTC to In-Hand Salary Calculator

Turn a CTC offer into the number that actually hits your bank. A ₹12 lakh CTC with 50% basic comes to about ₹87,800 in-hand per month — noticeably less than the ₹1 lakh "per month" the CTC implies, even though income tax is zero at that level under the FY 2026-27 new regime. The EPF contributions on both sides make the difference.

Annual CTC (₹)

Basic salary (% of CTC)

₹87,800

Monthly in-hand

₹1,00,000

Monthly CTC

₹10,53,600

Annual in-hand

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.

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Why use CTC to In-Hand Calculator?

The gap between CTC and in-hand salary is the most common payslip surprise in India, and it comes from two directions at once. First, CTC includes money you never see as salary: the employer's 12% EPF contribution (and often gratuity accrual or insurance premiums) is part of the "package" but goes to your retirement fund, not your bank. Second, the payable gross then loses your own deductions — employee EPF at 12% of basic, income tax under whichever regime you declare, and a small professional tax. This calculator makes each step visible with editable assumptions: basic as a percent of CTC (the labour codes push this to 50%), EPF on both sides, professional tax at the typical ₹200 a month, and FY 2026-27 new-regime income tax computed exactly — 87A rebate and marginal relief included. The model deliberately excludes variable pay, ESOPs, and gratuity accrual, since those differ per company; for offers heavy on those components, read the salary structure annexure closely. Use the result to compare offers on the number that matters, then verify against your actual payslip structure.

Key benefits

Shows why CTC ÷ 12 is not your salary
FY 2026-27 new-regime tax applied automatically
Both EPF sides shown — including the employer share that never reaches your bank
Transparent, editable assumptions
Runs entirely in your browser

Features

Basic % slider (labour-code 50% default)
12% employee + 12% employer EPF on basic
₹200/month professional tax
Full annual deduction breakup

Popular use cases

Evaluating a job offer on real take-home terms
Comparing two offers with different CTC structures
Explaining to yourself where ₹1 lakh CTC per month went
Sanity-checking your first payslip against the offer

How to use CTC to In-Hand Calculator

1
Enter your annual CTC
The full cost-to-company figure from your offer letter.
2
Set the basic %
Basic salary as a percent of CTC — 50% is the modern default under the new labour codes; check your offer's salary structure.
3
Read the in-hand figure
Monthly in-hand, annual in-hand, and the full deduction breakup (both EPF sides, income tax, professional tax) appear instantly.

Frequently asked questions

What is the in-hand salary for a ₹12 lakh CTC?

About ₹87,800 per month with a 50% basic structure. The CTC includes ₹72,000 of employer EPF that never reaches your account; the remaining ₹11.28 lakh gross pays ₹72,000 employee EPF and ₹2,400 professional tax — and, notably, zero income tax, because the FY 2026-27 new regime's 87A rebate wipes out tax on taxable income up to ₹12 lakh. Exact figures depend on your company's structure.

Why is in-hand so much lower than CTC ÷ 12?

CTC counts everything the company spends on you — including the employer's EPF share and sometimes gratuity accrual and insurance premiums — not what you get paid. Then your own deductions (employee EPF, income tax, professional tax) come out of the payable gross. Two companies can offer the same CTC with meaningfully different in-hand amounts.

Does a higher basic % mean more or less in-hand?

Less in-hand, more savings: EPF on both sides is a percentage of basic, so a 50% basic diverts more into your provident fund than a 40% basic at the same CTC. The new labour codes (in force since November 2025) push wages toward at least 50% of CTC, which is why many structures were revised.

Which tax regime does this use?

The FY 2026-27 new regime, which is the default and the better deal for most salaried taxpayers without large deductions. If you claim heavy 80C/HRA/home-loan deductions under the old regime, your tax could be lower — compare both in our income tax calculator.

Last reviewed: August 2026

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