Why is my in-hand lower than CTC ÷ 12?

CTC includes employer PF, gratuity provisions, and variable pay that never reach your monthly bank account. In-hand is what's left after PF, professional tax, and income tax are deducted from gross pay.

Which tax regime does this calculator use?

The New Tax Regime for FY 2026-27, which is the default regime for most salaried employees in India, with a ₹75,000 standard deduction and the Section 87A rebate up to ₹12L taxable income.

Does this include HRA exemption?

No — HRA exemption applies only under the Old Regime. If you have significant rent and old-regime deductions, your actual in-hand could be higher than shown here.

Is the 40% basic-pay assumption accurate for my offer?

Most Indian employers set basic pay between 35–50% of fixed pay. Check your own offer letter — if your ratio differs, PF figures shift slightly but the tax calculation stays the same.

Take-Home Salary Calculator (FY 2026-27)

Convert CTC to monthly in-hand pay under the new tax regime

Your CTC (Cost to Company) is not what lands in your bank account every month. Employer PF, professional tax, and income tax all come out before you see a rupee. This calculator converts any CTC figure into your real monthly in-hand salary, using the current FY 2026-27 New Tax Regime rules.

Open the interactive calculator

Move the CTC and variable-pay sliders and see your monthly in-hand, tax, and PF breakdown update instantly.

Calculate my in-hand salary →

How to Use This Tool

Start with the CTC shown in your offer letter, including the annual figure rather than only the monthly salary. Next, adjust the variable-pay percentage to match the bonus or performance-pay portion of your package. If your offer separates fixed pay, joining bonus, or retention bonus, use the portion you realistically expect to receive during the year. Review the assumed basic-pay ratio and PF setting, because companies structure compensation differently. The result gives you an estimate of annual gross pay, employee PF, professional tax, income tax, and monthly in-hand pay. Compare the breakdown with your salary slip before accepting an offer. Keeping the result beside your offer letter helps you spot employer PF, gratuity, and bonus amounts that are included in CTC but are not deposited every month.

Formula & Calculation Method

The calculator first removes variable pay from CTC to estimate fixed pay. It estimates basic salary as 40% of fixed pay, then calculates employee and employer PF using the configured basic-pay amount. Employer PF is removed from CTC when it is included in the package, while employee PF is deducted from gross salary. Taxable income is estimated after the applicable standard deduction and calculated with the FY 2026-27 New Tax Regime slabs, followed by the health and education cess. Professional tax is included as an annual estimate because the exact amount depends on the employee's state. Finally, monthly in-hand pay is the annual gross amount minus employee PF, professional tax, and income tax, divided by twelve. This is a planning estimate, not an official payroll calculation.

How the Calculation Works

Fixed pay = CTC minus your variable/bonus percentage. Bonus is usually paid quarterly or annually, so it's excluded from the monthly figure.
Basic salary is assumed at 40% of fixed pay — the most common structure in Indian offer letters.
Provident Fund (PF): 12% of basic is deducted from you, and a matching 12% employer contribution is removed from CTC if it's included there (most Indian offers include it).
Income tax is calculated on the New Regime FY 2026-27 slabs, after a ₹75,000 standard deduction, with the Section 87A rebate applied for taxable income up to ₹12L, plus 4% health & education cess.
Professional tax is deducted as a flat ₹2,400/year estimate (varies slightly by state).
Monthly in-hand = (Gross − Employee PF − Professional tax − Income tax) ÷ 12.

Worked Example

For a ₹12 LPA offer with 10% variable pay: fixed pay = ₹10.8L → basic = ₹4.32L. Employer and employee PF = ₹51,840 each. Gross = ₹10.28L → taxable income = ₹9.53L. Under the ₹12L rebate, tax = ₹0, so only professional tax (₹2,400) is deducted. Monthly in-hand ≈ ₹81,100.

Frequently Asked Questions (FAQ)

Why is my in-hand lower than CTC ÷ 12?: CTC includes employer PF, gratuity provisions, and variable pay that never reach your monthly bank account. In-hand is what's left after PF, professional tax, and income tax are deducted from gross pay.
Which tax regime does this calculator use?: The New Tax Regime for FY 2026-27, which is the default regime for most salaried employees in India, with a ₹75,000 standard deduction and the Section 87A rebate up to ₹12L taxable income.
Does this include HRA exemption?: No — HRA exemption applies only under the Old Regime. If you have significant rent and old-regime deductions, your actual in-hand could be higher than shown here.
Is the 40% basic-pay assumption accurate for my offer?: Most Indian employers set basic pay between 35–50% of fixed pay. Check your own offer letter — if your ratio differs, PF figures shift slightly but the tax calculation stays the same.