CTC to In-Hand Salary Calculator
Enter your CTC and get an instant breakup of Basic, HRA, PF and take-home salary.
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What is CTC (Cost to Company)?
CTC, or Cost to Company, is the total amount an employer spends on an employee in a year. It includes not just the salary you receive in your bank account, but also the employer’s contributions and benefits that you never actually see as cash — like the employer’s share of Provident Fund, gratuity, and sometimes insurance premiums. This is why your CTC always looks bigger than the salary that actually lands in your account every month.
CTC vs In-Hand Salary: What’s the Difference?
In-hand salary (also called take-home salary or net salary) is the amount you actually receive after all deductions — employee PF contribution, professional tax, and income tax (TDS). Your in-hand salary is always lower than your CTC because a part of the CTC never reaches your bank account (like employer PF and gratuity), and another part is deducted from your gross pay before it’s credited to you.
A simple way to think about it: CTC = Take-Home Salary + Employee Deductions (PF, Tax) + Employer Contributions (PF, Gratuity) + Bonus/Variable Pay.
Main Components of a CTC Breakup
- Basic Salary — The fixed core of your pay, usually 35–50% of CTC. Most other components are calculated as a percentage of this.
- HRA (House Rent Allowance) — Given to help cover rent, typically 40–50% of Basic depending on whether you’re in a metro city.
- Special Allowance — The flexible remaining portion of your salary after Basic, HRA and other fixed heads are set.
- Employer PF Contribution — 12% of Basic (or capped at ₹1,800/month), paid by your employer into your EPF account. It’s part of CTC but never shows up in your bank account directly.
- Employee PF Deduction — A matching 12% deducted from your own salary and deposited into the same EPF account — this is why it reduces your take-home pay.
- Bonus / Variable Pay — Performance-linked pay that’s included in CTC but not guaranteed every month.
How This Calculator Works
Enter your yearly or monthly CTC, and the calculator splits it into Basic, HRA and Special Allowance using standard industry ratios (which you can fine-tune under Advanced Settings). It then calculates employer and employee PF contributions, applies the latest income tax slabs for your selected regime (New or Old), adds professional tax, and works out your final in-hand salary — both monthly and yearly — along with a full breakup table.
Why is My In-Hand Salary Lower Than Expected?
This is one of the most common surprises for first-time job seekers. A ₹10 lakh CTC offer doesn’t mean ₹83,000 a month in your account — after employer PF (which isn’t paid to you directly), your own PF deduction, professional tax and income tax, your real in-hand salary is usually 15–25% lower than your CTC divided by 12. Using this calculator before accepting an offer helps you negotiate and plan your finances with real numbers, not the headline CTC figure.
Frequently Asked Questions
Is CTC the same as salary?
No. CTC is the total yearly cost to the employer, including benefits you don’t receive as cash. Salary usually refers to the amount credited to your account, which is lower than CTC.
Does CTC include bonus?
Yes, most companies include the annual bonus or variable pay as part of the CTC figure, even though it isn’t paid out every month.
How accurate is this CTC calculator?
It uses standard industry assumptions (Basic at 40% of CTC, HRA at 50% of Basic, etc.) and the latest income tax slabs. Your actual salary slip may differ slightly based on your specific company’s policy, so treat this as a close estimate for planning, not an official figure.
Which tax regime should I choose — New or Old?
If you don’t have major investments, HRA claims, or a home loan, the New Regime usually results in lower tax. If you claim significant deductions under 80C, 80D or HRA, compare both using the calculator above to see which gives you a higher take-home salary.
