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CTC to In-Hand Salary Calculator
Break an offer down into basic, HRA, PF and tax, and see what actually lands in your bank each month.
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Result
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The number in an offer letter and the number in your bank account are different for structural reasons, not because anyone is being dishonest. CTC is the employer's total cost. Several items inside it never reach you monthly.
What sits in CTC but not in your account
Employer PF is 12% of basic and goes to your EPF account. The gratuity provision — about 4.81% of basic — is set aside against a payment you receive only after five years. Variable pay is usually paid quarterly or annually. Together these routinely account for 15% to 20% of the headline figure.
What comes out of your pay
Employee PF is another 12% of basic, professional tax is a small state levy, and income tax is deducted monthly as TDS. The calculator applies the regime you choose so you can see how the structure interacts with your tax position.
Why basic matters
A higher basic raises PF and gratuity — more forced saving, less monthly cash. A lower basic does the opposite but shrinks your HRA exemption, since that is calculated on basic. There is no universally right split; it depends on whether you need the cash now or the compounding later.
Frequently asked questions
Why is my in-hand salary so much lower than my CTC?
Because CTC is the employer's total cost, not your pay. Employer PF, the gratuity provision and any variable pay sit inside the figure but never reach your monthly account. Together they typically account for 15% to 20% of CTC before income tax and your own PF are deducted.
Is a higher basic salary better or worse?
It depends what you need. A higher basic raises PF and gratuity — more forced saving, less monthly cash — and increases your HRA exemption, since HRA is calculated on basic. A lower basic gives you more cash now and a smaller retirement balance.
How accurate are the default percentages?
They model a typical private-sector structure: basic at 40% of CTC and HRA at 50% of basic. Your offer letter or salary slip is the authority. Change the sliders to match it and the breakdown becomes exact for your case.
Does this include employer NPS contributions?
No. If your employer contributes to NPS under 80CCD(2), add it to CTC separately. It is deductible for you, including under the new regime, which makes it one of the few tax-efficient components left in a modern salary structure.