How to Calculate Take-Home Salary from CTC in India

# How to Calculate Take-Home Salary from CTC in India

When you get a job offer, the CTC (Cost to Company) number looks impressive. But what actually hits your bank account every month is much lower. Here is how to calculate your real take-home.

CTC Breakdown

Your CTC includes everything the company spends on you:

Component	What It Is
Basic Salary	Usually 40–50% of CTC
HRA	House Rent Allowance
Special Allowance	Catch-all for remaining amount
PF (Employee)	12% of basic (up to ₹15,000)
PF (Employer)	12% of basic (matching contribution)
Gratuity	~4.81% of basic (paid after 5 years)
Medical Insurance	Company-paid health cover

What you actually receive = Basic + HRA + Special Allowance − PF − Professional Tax − Income Tax

Example: ₹10,00,000 CTC

Component	Monthly	Annual
Basic (40%)	₹33,333	₹4,00,000
HRA (20%)	₹16,667	₹2,00,000
Special Allowance	₹20,000	₹2,40,000
PF (Employee)	₹4,000	₹48,000
Professional Tax	₹200	₹2,400
Gross Salary	₹70,000	₹8,40,000
Income Tax (new regime)	~₹4,100	~₹49,200
In-Hand (approx)	₹65,900	₹7,90,800

Note: The exact tax depends on your regime choice, other income, and deductions.

What Reduces Your Take-Home

1. PF (Employee contribution) — mandatory 12% of basic
2. Professional Tax — ₹200/month in most states (₹2,400/year)
3. Income Tax — depends on regime and deductions
4. ESI — if your gross salary is under ₹21,000/month

How to Calculate It

1. Go to Salary Calculator
2. Enter your CTC
3. Select your city type (metro or non-metro)
4. Choose old or new tax regime
5. See your detailed breakdown instantly

The calculator shows your monthly in-hand, annual take-home, and a complete breakdown of every deduction.

Tips to Increase Take-Home

• Choose the right tax regime — compare both using the Income Tax Calculator
• Maximize HRA — if you pay rent, claim HRA exemption
• Use 80C — invest ₹1.5L in PPF, ELSS, or EPF to reduce old-regime tax
• Negotiate structure — higher basic means more PF but also more HRA

CTC vs In-Hand: The Real Gap

CTC	Typical In-Hand (New Regime)	Gap
₹5,00,000	₹3,80,000	24%
₹8,00,000	₹6,10,000	24%
₹10,00,000	₹7,90,000	21%
₹15,00,000	₹11,50,000	23%
₹20,00,000	₹15,20,000	24%

The gap is typically 20–25% for new-regime taxpayers. Factor this in when negotiating offers.

Start Here

Use the free Salary Calculator to see your exact take-home before you accept an offer.