How to use this CTC to In-Hand calculator
Your cost-to-company (CTC) and the money that actually reaches your bank account are two very different numbers. CTC bundles in employer provident fund, gratuity provisioning, insurance premiums and variable pay that you never see as monthly cash, which is why a headline package can feel much larger than your real take-home.
This calculator works the way a payroll team does: it strips out the employer-side costs, applies provident fund and professional tax, estimates income tax under the regime you choose, and leaves you with a realistic monthly in-hand figure you can budget around.
What CTC actually contains
CTC is the total annual cost your employer carries for you. It includes your fixed salary, employer's 12% provident fund contribution, gratuity provisioning, group insurance and any variable or joining bonus.
Only the fixed-salary portion, minus your own deductions, becomes cash in hand. The basic-pay percentage matters because PF, gratuity and several tax exemptions are all calculated from basic.
Deductions that shrink take-home
Employee provident fund is 12% of your PF wage base. Using the statutory ₹15,000 cap keeps it at ₹1,800 a month; contributing on full basic increases both the deduction and your retirement corpus.
Professional tax (a small state levy, capped at ₹2,500 a year), any insurance or recovery deductions, and income tax deducted at source (TDS) further reduce the monthly figure.
Why the tax regime changes the answer
The new regime offers lower slab rates but removes most exemptions; the old regime keeps higher rates but lets you claim HRA, 80C, 80D and home-loan interest. The right choice depends on how many deductions you genuinely have.
Switching the regime selector recalculates estimated tax instantly, so you can see which one leaves more in your pocket before you commit on your investment-declaration form.
Reading the estimate sensibly
Treat the monthly in-hand number as a planning baseline, not a payslip. Variable pay is often disbursed quarterly or annually, so the months it lands will look higher than this average.
Always reconcile the estimate against the detailed salary breakup from HR, which is the only document that reflects your employer's exact structure.