Salary Calculator — What Does That CTC Actually Pay Into Your Bank Account?
Calculate your take-home salary from CTC. Break down PF, income tax, professional tax, and other deductions to find your in-hand salary.
CTC and take-home pay are very different numbers, and the gap between them surprises a lot of new employees. A ₹10 lakh CTC might deliver ₹68,000 a month in hand — or ₹73,000, depending on how the salary structure is set up. The CalcHub Salary Calculator breaks down all the deductions and tells you exactly what lands in your account.
What's in a CTC
CTC (Cost to Company) includes everything the employer spends on you — basic salary, HRA, special allowances, employer PF contribution, gratuity component, medical insurance premium, and any other perks. You receive only a portion of it as actual salary.
Typical CTC components:
| Component | Typical % of CTC |
|---|---|
| Basic Salary | 40-50% |
| HRA | 20-40% (if in metro, 50% of basic) |
| Special Allowance | Variable |
| PF (employer) | 12% of basic |
| Gratuity | 4.81% of basic |
| Medical/LTA | 5-10% |
Key Deductions from Gross Salary
Employee PF: 12% of basic salary, deducted and sent to EPFO. You get this back on retirement/resignation with interest — it's your money, but you can't touch it freely now. Income Tax (TDS): Based on your declared regime and investments. Your employer deducts this monthly and deposits it as advance tax. Professional Tax: State-levied, maximum ₹2,500/year, varies by state. Some states like Maharashtra and Karnataka have it; others don't. Health insurance premium: If employer deducts it from your pay rather than paying separately, it reduces take-home.How to Use the Salary Calculator
- Enter your CTC — annual figure from your offer letter
- Enter salary structure — basic, HRA, and special allowance amounts (or let the calculator use defaults)
- Enter tax regime — old or new
- Enter investments (old regime) — 80C, 80D, etc., to see tax impact
- Calculate — see monthly gross, deductions breakdown, and net in-hand salary
Sample Breakdown: ₹12 LPA CTC (New Regime)
| Component | Monthly |
|---|---|
| Gross Salary | ₹1,00,000 |
| Employee PF (12% of basic ₹40k) | -₹4,800 |
| Professional Tax | -₹200 |
| Income Tax (TDS, ~8% effective) | -₹6,700 |
| Net Take-Home | ~₹88,300 |
Negotiating Salary Structure
If you have a choice in how your CTC is structured, here's what helps:
- Higher HRA if you're renting in a metro — HRA exemption reduces taxable income (old regime)
- Higher special allowance if you don't need HRA — more flexible but fully taxable
- Maximize flexible benefits like LTA, food coupons, phone reimbursement — these have partial tax exemptions
Hourly Rate Calculation
Freelancers and consultants need this differently. If you need ₹70,000/month after taxes and you're billing at a 30% effective tax rate, your required gross monthly billing is ₹1,00,000. Working 8 hours/day, 22 days/month (176 hours), your required hourly rate is ₹568/hour — about ₹570-600 rounded.
Why does my increment feel smaller after tax?
Because income tax is progressive. As you move into higher brackets, marginal tax rate increases. A ₹50,000 annual increment might only net ₹35,000 if it pushes more of your income into a 20% or 30% bracket. Plan your increments to understand the actual after-tax impact.
Is variable pay included in CTC?
Usually yes, at target achievement. But variable/bonus components aren't guaranteed, and the tax treatment differs slightly. Ask HR for the fixed CTC vs total CTC breakdown — make financial decisions based on fixed CTC only.
How do I find my exact tax deduction?
Your payslip should show TDS separately. Alternatively, check Form 16 Part B at year-end. You can also estimate it using the CalcHub Tax Calculator with your income and deductions.