CTC to In-Hand Salary Calculator
Enter your annual CTC and see exactly how much lands in your bank account every month. Compares old vs new tax regime.
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Monthly Salary Breakdown
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Old vs New Regime Comparison
CTC LPA to In-Hand Salary Calculator India (FY 2026-27)
You got an offer letter that says “12 LPA” — but when the first salary hits your bank account, it’s nowhere close to ₹1 lakh per month. This is the most common shock for Indian employees, and it happens because CTC (Cost to Company) and in-hand salary are fundamentally different numbers that no HR will explain to you clearly.
Our calculator above does in 3 seconds what would take you 30 minutes on paper: enter your CTC, and it instantly shows your real monthly take-home salary after deducting PF, gratuity, professional tax, and income tax under both the old and new tax regimes for FY 2026-27.
Why Your In-Hand Salary Is Always Lower Than You Expect
The gap between CTC and in-hand salary typically ranges from 25% to 35%. A 10 LPA CTC doesn’t give you ₹83,333 per month — it gives you roughly ₹62,000 to ₹68,000. Here’s where your money goes:
| Component | What It Is | How It Reduces Your Take-Home |
|---|---|---|
| Employer PF (12% of Basic) | Your employer’s contribution to your Provident Fund account | Part of CTC but never hits your bank account. Goes directly to your EPFO account. |
| Employee PF (12% of Basic) | Your own contribution deducted from salary | Deducted from your gross salary every month. You get it back only when you withdraw PF. |
| Gratuity (4.81% of Basic) | Retirement benefit paid after 5 years of service | Part of CTC but paid only if you stay with the company for 5+ years. Otherwise, you lose it. |
| Professional Tax | State-level tax on employment | ₹200/month (₹2,400/year) in most states. Maharashtra charges ₹2,500/year. |
| Income Tax (TDS) | Tax deducted at source based on your tax slab | This is the biggest deduction for anyone earning above 7-8 LPA. Can take 10-30% of your gross salary. |
CTC vs Gross Salary vs In-Hand Salary — The Difference That Matters
These three terms confuse almost everyone. Here’s the plain-English explanation:
CTC (Cost to Company) is the total amount your employer spends on you per year. It includes your salary, employer PF, gratuity, insurance, meal vouchers, and any other benefits. This is the number on your offer letter — and it’s always the highest number.
Gross Salary is your CTC minus employer contributions (employer PF, gratuity, employer ESI). This is your salary before your own deductions. Think of it as: CTC minus the stuff your employer pays on your behalf that you never see.
In-Hand Salary (Take-Home / Net Salary) is your gross salary minus your deductions (employee PF, professional tax, income tax). This is the number that actually lands in your bank account on the last day of the month. This is the only number that matters for your monthly budget.
The formula: CTC → subtract employer PF, gratuity, insurance → Gross Salary → subtract employee PF, professional tax, income tax → In-Hand Salary.
Quick Reference: In-Hand Salary for Common CTC Packages
These are approximate monthly in-hand figures under the New Tax Regime for FY 2026-27 (assuming 50% basic salary, metro city, standard deductions):
| Annual CTC | Monthly Gross | Monthly In-Hand (Approx) | Effective Tax Rate |
|---|---|---|---|
| 3 LPA | ₹22,500 | ₹20,800 | 0% (below taxable limit) |
| 5 LPA | ₹37,500 | ₹34,200 | 0% (rebate under 87A) |
| 7 LPA | ₹52,500 | ₹47,500 | ~2% |
| 10 LPA | ₹75,000 | ₹65,000 | ~6% |
| 12 LPA | ₹90,000 | ₹76,000 | ~8% |
| 15 LPA | ₹1,12,500 | ₹92,000 | ~11% |
| 20 LPA | ₹1,50,000 | ₹1,18,000 | ~14% |
| 25 LPA | ₹1,87,500 | ₹1,42,000 | ~17% |
| 30 LPA | ₹2,25,000 | ₹1,65,000 | ~19% |
| 50 LPA | ₹3,75,000 | ₹2,60,000 | ~24% |
These are estimates. Your actual in-hand salary depends on your specific salary structure, city, and tax-saving investments. Use the calculator above for an exact figure based on your CTC.
New Tax Regime vs Old Tax Regime — Which One Gives You More In-Hand Salary?
This is the single most important tax decision you make every year, and the answer depends entirely on how much you invest and spend on rent.
New Tax Regime (Default from FY 2024-25 onwards):
Lower tax rates but almost no deductions allowed. You get a standard deduction of ₹75,000 (increased from ₹50,000 in Budget 2025) and that’s essentially it. No 80C, no HRA exemption, no home loan interest deduction. The tax slabs are: 0% up to ₹4 lakh, 5% from ₹4-8 lakh, 10% from ₹8-12 lakh, 15% from ₹12-16 lakh, 20% from ₹16-20 lakh, 25% from ₹20-24 lakh, and 30% above ₹24 lakh. Income up to ₹12 lakh is effectively tax-free due to the ₹60,000 rebate under Section 87A.
Old Tax Regime:
Higher tax rates but allows all deductions — Section 80C (₹1.5 lakh), HRA exemption, 80D (health insurance), home loan interest (₹2 lakh), NPS (₹50,000 extra), and more. If your total deductions exceed ₹3-4 lakh per year, the Old Regime often saves more tax.
The simple rule: If you pay rent in a metro city AND invest ₹1.5 lakh in 80C AND have health insurance — the Old Regime is usually better for salaries above ₹10 LPA. Below ₹10 LPA, the New Regime almost always wins because the lower slabs + ₹12 lakh rebate make it hard to beat. Use our calculator to compare both side by side for your exact CTC.
How Basic Salary Percentage Affects Everything
Your basic salary is typically 40-50% of your CTC, and it controls almost every other component. Here’s why it matters more than you think:
A higher basic salary means: more PF contribution (both employer and employee), higher HRA (calculated as 40-50% of basic), higher gratuity, but also higher tax on HRA if you don’t live in a rented house. A lower basic salary means: less PF deduction (so more in-hand salary today), lower HRA, but lower retirement benefits and lower gratuity payout.
Some companies offer a choice between higher basic (better for long-term retirement savings) and lower basic with higher special allowance (better for immediate take-home). If your employer gives you this option, choose higher basic if you plan to stay 5+ years (gratuity vesting), and lower basic if you want maximum cash in hand today.
What Our Calculator Accounts For
Unlike simplified calculators that only show gross minus tax, our LPA to In-Hand calculator includes every real-world deduction that affects your bank balance:
Employee Provident Fund (EPF): 12% of your basic salary, up to a maximum of ₹1,800/month (on ₹15,000 basic salary cap for PF). If your basic exceeds ₹15,000, PF may be calculated on full basic or capped at ₹15,000 — this depends on your employer’s policy.
Employer PF: Another 12% of basic from your employer’s side. This is part of CTC but not part of your monthly salary — it goes directly to your EPFO account.
Gratuity: 4.81% of basic salary. Part of CTC, not paid monthly. You receive this as a lump sum only after completing 5 years of continuous service.
Professional Tax: ₹200/month in most states. Some states like Maharashtra charge ₹2,500/year. A few states like Rajasthan don’t levy professional tax at all.
Income Tax: Calculated based on your chosen tax regime (old or new), applicable slab rates, and eligible deductions. Our calculator computes this automatically for both regimes so you can compare.
Frequently Asked Questions
What is the in-hand salary for 10 LPA?
For a 10 LPA CTC, your approximate monthly in-hand salary is ₹62,000-₹68,000 under the New Tax Regime, depending on your salary structure and city. Under the Old Tax Regime with full deductions (80C, HRA, 80D), it can go up to ₹70,000-₹72,000. Use the calculator above for your exact figure.
Why is my in-hand salary so much less than my CTC?
Because CTC includes components you never receive in cash — employer PF contribution, gratuity (paid only after 5 years), employer ESI, and sometimes even insurance premiums and meal vouchers. After removing these non-cash components and then deducting your own PF, professional tax, and income tax, the remaining amount (typically 65-75% of CTC) is your in-hand salary.
Is LPA and CTC the same thing?
Yes. LPA (Lakhs Per Annum) is just a way of expressing CTC. When someone says “10 LPA package,” they mean the CTC is ₹10,00,000 per year. It does NOT mean you’ll receive ₹10 lakh in your bank account — the in-hand amount will be significantly lower.
How can I increase my in-hand salary without changing jobs?
Four ways: (1) Choose the tax regime that saves you more tax, (2) Claim all eligible deductions — especially HRA if you pay rent, (3) Ask your employer to restructure your salary with more reimbursement components (fuel, telephone, meals), (4) If your employer offers flexi-pay or cafeteria benefits, optimize the allocation towards tax-free components.
Does the calculator work for both private and government sector?
This calculator is designed for private sector salary structures where CTC includes employer PF and gratuity. Government employees have a different pay structure based on Pay Commission levels, DA, and HRA — for that, use our 8th Pay Commission Salary Calculator instead.
Hidden CTC Components That Eat Into Your Take-Home
Beyond the standard deductions, many companies include these in your CTC that further widen the gap between offer letter and bank balance:
Performance Bonus / Variable Pay: If your offer says “15 LPA including 20% variable,” your guaranteed monthly salary is based on only 12 LPA. The remaining 3 LPA depends on company and individual performance — and it’s paid annually or quarterly, not monthly. When budgeting, calculate in-hand based on your fixed CTC only.
Company Insurance Premium: Many companies include the group health insurance premium (₹10,000-₹30,000/year) in your CTC. You benefit from the coverage, but it reduces your cash compensation.
Meal Vouchers / Sodexo: Some companies allocate ₹2,200/month as meal vouchers (tax-free up to this limit). This is part of CTC — you get the benefit but in restricted-use vouchers, not cash.
Retention Bonus / Joining Bonus: One-time bonuses are sometimes included in the CTC figure to inflate the number. A “15 LPA” offer with a ₹2 lakh joining bonus is really a 13 LPA annual salary with a one-time sweetener.
The golden rule: When comparing two offers, strip out all variable, bonus, and non-cash components. Compare only the fixed monthly in-hand salary — that’s what pays your rent and EMIs every month.