What is the difference between CTC and in-hand salary?

CTC (Cost to Company) is the total amount a company spends on an employee annually. It includes your gross salary plus other benefits like the employer's PF contribution. In-hand salary (or net salary) is the amount you actually receive in your bank account each month after all deductions like income tax (TDS) and your employee PF contribution are subtracted from your gross salary.

What is Provident Fund (PF)?

Provident Fund is a mandatory retirement savings scheme. Both the employee and employer contribute 12% of the employee's basic salary to the EPF account. This calculator estimates your monthly PF deduction.

Is this calculation 100% accurate?

This calculator provides a close estimate based on simplified rules for the new tax regime. Your actual in-hand salary can differ based on your company's specific salary structure (e.g., the exact basic salary percentage, HRA, LTA), professional tax (which varies by state), and other deductions. It's an excellent tool for estimation but always refer to your official payslip for exact figures.

Salary Calculator

Estimate your in-hand salary by calculating deductions like tax and provident fund from your gross salary.

Enter Your Salary

Your Gross Annual Salary (CTC)

Salary Breakdown (Approx.)

Enter your salary to see the breakdown.

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About the Salary Calculator

Decode your salary slip and understand your take-home pay.

Understanding Your Salary

This calculator helps you understand the difference between your gross salary (also known as Cost to Company or CTC) and your net or in-hand salary (the amount you actually receive in your bank account each month). The difference is due to various deductions made from your gross pay as mandated by law and company policy. This tool gives you a quick estimation of your take-home pay based on your annual CTC.

How to Use This Calculator

Simply enter your Gross Annual Salary (your total yearly package or CTC) into the input field and click the "Calculate In-Hand Salary" button. The tool will provide an approximate breakdown of your monthly and yearly net salary after estimating common deductions like Provident Fund (PF) and Income Tax (TDS). This calculation is based on a simplified model assuming the New Tax Regime.

Frequently Asked Questions

Practical Applications

A salary calculator is a crucial tool for anyone in the workforce:

Job Offer Comparison: When evaluating a new job offer, this tool helps you understand the actual take-home pay, which is often more important than the CTC figure.
Monthly Budgeting: Knowing your precise in-hand salary allows you to create an accurate monthly budget for your expenses, savings, and investments.
Financial Planning: It provides a clear picture of your disposable income, which is the foundation for long-term financial planning, such as saving for a down payment on a home, planning for retirement, or funding other major life goals.

Disclaimer

The calculations provided are estimates based on simplified assumptions. Actual in-hand salary can vary based on your company's specific salary structure (e.g., HRA, LTA, other allowances), professional tax (which varies by state), and your chosen tax regime (Old vs. New). For precise financial planning, always refer to your official salary slip and consult with a financial advisor.