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.

How the Calculation Works

1. Fixed pay = CTC minus your variable/bonus percentage. Bonus is usually paid quarterly or annually, so it's excluded from the monthly figure.
2. Basic salary is assumed at 40% of fixed pay — the most common structure in Indian offer letters.
3. 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).
4. 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.
5. Professional tax is deducted as a flat ₹2,400/year estimate (varies slightly by state).
6. 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

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.