CTC to Take-Home Salary Calculator (2025) — Breakup, Old vs New Tax Regime & In-Hand Pay

Introduction — Why you need a CTC → Take-Home calculator

When recruiters quote an offer in CTC (Cost to Company), most candidates immediately ask: “What will I actually get in my bank?”
CTC is useful for HR accounting, but it hides a lot of detail: employer contributions, taxes, allowances and statutory deductions all affect your actual take-home pay.

Our CTC to Take-Home Salary Calculator breaks an annual CTC into components (Basic, HRA, Other Allowances, Employer PF, Gratuity), estimates statutory deductions (Employee PF, Professional Tax), computes tax (Old vs New regime), and gives a clear monthly in-hand figure. It’s perfect for job negotiations, planning monthly budgets, and comparing offers.

Use the calculator

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What this calculator does (at a glance)

• Converts annual CTC to monthly gross and net in-hand pay

• Splits salary into Basic, HRA and other allowances (auto or customizable)

• Estimates Employer + Employee PF, Gratuity (if included) and Professional Tax (state estimate)

• Computes income tax under both Old and New tax regimes (compare instantly)

• Shows monthly TDS, and monthly take-home pay

• Provides a short assumptions note so users understand limits and where payroll variations may apply

Inputs the tool asks for

• Annual CTC (₹) — total cost to company per year

• State of employment — for professional tax estimation (state rules vary)

• Tax regime — Old vs New (choose to compare)

• Salary split mode — Auto (recommended) or Manual (custom Basic% / HRA% / Others%)

• Employee PF % (default 12%) and Employee NPS % (if applicable)

• Gratuity included in CTC toggle

• Standard deduction and 80C / 80D values (used in old regime calculations)

Outputs you’ll get (what to expect)

• Gross Annual (CTC) and Monthly Gross

• Basic (annual), HRA (annual), Other allowances (annual)

• Employer PF (annual) and Employee PF (monthly) deductions

• Professional tax estimate (monthly)

• Estimated Annual Tax (incl. cess) and Monthly TDS

• Monthly Take-Home (net pay after deductions)

How the calculator works — the logic (brief, technical)

1. Salary split (auto)

   • Default auto split: Basic = 40% of gross, HRA = 50% of Basic, remaining = Other allowances. You can override these using manual split inputs.

2. PF & gratuity

   • Employer PF provision = Basic × PF% (assumed included in CTC). Employee PF monthly = (Basic × PF%) / 12 and shown as a monthly deduction. Gratuity (if included) is estimated using a common actuarial approximation.

3. Taxable income

   • Taxable income ≈ CTC − employer PF (not taxable in salary) − standard deduction − (old-regime specific deductions such as employee PF + 80C/80D if chosen).

4. Income tax computation

   • The calculator applies the selected slab (Old or New regime) across your taxable income, sums slab taxes, then applies cess (e.g., 4%) and computes an annual tax. Monthly TDS ≈ annual tax / 12.

5. Monthly in-hand

   • Monthly in-hand = Monthly gross − employee PF − monthly TDS − professional tax − employee NPS (if any).

Note: The tool uses simplified professional tax tables and common assumptions for gratuity and employer PF — actual payroll policies may vary by employer/state.

Example: Step-by-step (sample calculation)

Inputs: CTC = ₹10,00,000; Auto split; State = Others; PF = 12%; Tax regime = New; Standard deduction = ₹50,000.

Calculator outputs (example):

• Monthly Gross = ₹83,333

• Basic = ₹4,00,000; HRA = ₹2,00,000; Other = ₹4,00,000

• Employee PF = ₹4,000 / month

• Annual tax (new regime) = ₹31,408

• Monthly take-home ≈ ₹76,716

This is an estimate — actual numbers will differ if your company follows a different split, includes extra allowances, or applies different state professional tax.

How to read these results (MUST READ)

When you get your results, here’s what each number means and what action you may take:

Required reading checklist

• Gross Annual (CTC) — the entire compensation package the employer pays (including employer PF, gratuity provision, allowances). Not what you receive in your bank.

• Monthly Gross — your monthly pre-deduction salary (CTC / 12).

• Basic — foundation of salary; many benefits (PF, gratuity, leave encashment) are calculated on Basic. A higher Basic often increases PF and gratuity.

• HRA (House Rent Allowance) — tax-favored allowance; actual tax saving depends on your rent & city. The tool shows HRA paid but does not automatically compute full HRA exemption unless you input rent & city details.

• Other Allowances — transport, special pay, bonuses. These may be fully taxable.

• Employer PF (annual) — part of CTC; employer’s statutory contribution. It helps your long-term savings but is not part of take-home.

• Employee PF (monthly) — your monthly statutory deduction (shown separately). This reduces take-home but is tax-advantaged under certain sections.

• Professional Tax — small monthly state tax (varies by state). If your state isn’t listed, professional tax may be 0 or handled differently.

• Estimated Annual Tax — total income tax for the year including cess (based on selected regime and declared deductions). Use this to evaluate whether Old or New regime benefits you more.

• Monthly Take-Home — the amount you can expect to receive in your bank each month after statutory deductions & tax.

Quick tips on reading the gap:

• If Take-Home is lower than expected, check:

  • whether Basic % is too high (more PF)

  • whether large allowances are taxable

  • whether you can claim deductions (80C/80D) under Old regime

• If Old vs New regime shows higher tax in one, try toggling 80C / rent / HRA inputs to see which regime suits you.

When Old vs New tax regime matters

• Old regime is useful when you have large tax saving investments/exemptions (80C, HRA, 80D, etc.).

• New regime offers lower slab rates but fewer exemptions.
  Use the tool to compare both regimes side-by-side — it’s often the fastest way to decide which regime gives better after-tax take-home for your situation.

Pro tips to improve take-home pay (without changing CTC)

• Maximise tax-efficient investments (80C, PPF, ELSS) if using Old regime.

• Plan HRA properly — if you rent in a metro, HRA exemption can cut tax materially. Consider documenting rent & lease.

• Negotiate allowances thoughtfully — some allowances are tax-free (meal, travel reimbursements) if structured correctly by employer.

• Check PF & gratuity policy — some employers include higher employer contributions inside CTC — clarify these during offer negotiation.

• Consider NPS (employer contributions can be tax-efficient in some cases).

Frequently Asked Questions (FAQs)

Q: Is CTC same as my salary?

No — CTC includes employer contributions (PF, gratuity provision, etc.) and benefits. Your in-hand salary is typically much lower than CTC.

Q: Does the tool calculate HRA exemption automatically?

Not by default. The tool shows HRA paid (based on split) but you should input rent and city if you want exact HRA exemption — we recommend an HRA add-on for precise savings.

Q: Old or New tax regime — which is better for me?

It depends on how many taxable exemptions/deductions you claim. If you claim large 80C/80D/HRA, Old regime usually helps. Use the tool to test both.

Q: Why is employer PF deducted from CTC?

Many employers include employer statutory contributions (like employer PF) inside the CTC package; this is part of CTC but not in-hand.

Q: Are professional tax rates included correctly?

We use simplified state estimates. Professional tax is state governed and varies — check local payroll or state notification for exact numbers.

Conclusion — Use the tool, then negotiate smarter

A salary offer quoted in CTC is only useful when you can translate it to monthly net income. Use our calculator to break down offers, compare regimes, and negotiate with clarity. It also gives you a simple roadmap of how much you can save by optimizing HRA, 80C/80D investments, or adjusting your salary structure.

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Note: Please do your own research and make investment. Moneycontain will not be responsible for any of your losses at all. The point made is for educational purpose only and intended to give information. All investments are subject to risks, which should be considered prior to making any investments.

Important disclaimer 

This calculator provides estimates for informational purposes only and is not professional tax advice. Tax rules, professional tax slabs and payroll practices change frequently. For precise payroll calculations or tax planning, consult a qualified tax consultant or your employer’s payroll team.