How the take-home salary calculator works
Your CTC (Cost to Company) is the total annual spend your employer books against your position. A large part of it never reaches your bank account — retirement contributions, gratuity provisions and statutory taxes are deducted first. This calculator separates employer-side costs from your actual gross salary, then applies the deductions that produce your monthly credit.
Step 1 — Split CTC into basic pay and other components
Most Indian employers fix basic pay at 40–50% of CTC. Basic pay drives PF, gratuity and HRA, so a higher basic means higher retirement savings and a lower immediate take-home. The slider lets you test both structures.
Step 2 — Remove employer-side costs
The employer's 12% PF contribution and the gratuity provision of 4.81% of basic pay are part of CTC but are never paid in cash. Subtracting them from CTC gives your gross salary — the figure on which your payslip is built.
Step 3 — Apply payroll deductions
Your own 12% PF contribution, professional tax (a state levy capped at ₹2,500 a year) and TDS on salary are deducted monthly. The calculator uses the new tax regime with the ₹75,000 standard deduction and the Section 87A rebate up to ₹12 lakh of taxable income.
Step 4 — Convert to a monthly figure
Net annual salary divided by twelve gives your monthly in-hand salary. Actual monthly credits can vary because TDS is often front-loaded or adjusted in the last quarter after you submit investment proofs.