Salary

Salary Calculator

Turn your CTC into a realistic monthly take-home with a full deduction breakdown, or compare two offers across cities. Tax modelled on FY 2026-27 new regime.

Rates for FY 2026-27Last reviewed June 28, 2026How we calculate

%

Editorial Trust Panel

Reviewed by

Compensation and Payroll Review Desk (Upaman)

Last reviewed

June 28, 2026

Content update

Auto-updated on Jun 28, 2026

Scope: Salary outputs are planning estimates based on modeled structure, deduction assumptions, and city normalization.

Trust and methodology

Last reviewed: June 28, 2026

This calculator provides planning estimates based on the assumptions shown on this page.

Methodology, assumptions, and source references
Auto-updated on Jun 28, 2026Data snapshot: Jun 28, 2026

Inputs used

  • Annual CTC, city type, PF %, optional HRA/gratuity/professional-tax toggles
  • Salary comparison uses current offer, new offer, and city cost multipliers

Formula basis

  • Component split model: basic + HRA + allowance with deduction roll-up
  • Illustrative tax and statutory deduction estimation for take-home projection
  • City comparison uses normalization multipliers for cost-adjusted change

Assumptions and limits

  • Salary structures vary by employer; this is a planning model, not payroll output
  • Tax and deduction estimates are simplified for quick decision support
  • Professional tax/benefit treatment can differ by state and payroll policy
Overview

Salary decisions are among the highest-impact financial choices for most professionals, especially during job switches. A useful CTC to in-hand salary calculator should do more than just one net number. It should show deduction components, monthly cash flow impact, and salary-comparison context. This page is structured for that decision workflow.

Use it to estimate take-home from annual CTC, compare offers across city contexts, and review how deduction assumptions influence your real monthly spending capacity.

Example calculation

Walk through the default: ₹12,00,000 CTC in a metro with the standard 12% PF setup. The model splits that into ₹5,40,000 basic, ₹2,70,000 HRA, and ₹2,99,226 special allowance, with the employer’s PF match and gratuity provision absorbing the rest of the CTC. Deductions from gross are modest at this level — ₹64,800 of employee PF and ₹2,500 professional tax, with income tax at zero thanks to the new-regime rebate — leaving about ₹86,827 a month in hand, an 86.8% take-home ratio.

Step the same structure up and watch tax take over: ₹15 lakh CTC yields roughly ₹1,05,940 a month (84.8% of CTC) with ₹31,754 of annual income tax, while ₹20 lakh yields about ₹1,33,312 a month (80.0%) with ₹1,38,468 of tax. The pattern is worth internalizing before any negotiation: each additional lakh of CTC delivers progressively less than the last one to your bank account, so a raise quoted in CTC terms always sounds bigger than it spends.

How the formula works

The model uses component-split estimation for basic, HRA, and allowances, then applies deduction roll-up (PF, tax assumptions, and selected statutory fields) to estimate net annual and monthly salary. Offer comparison mode additionally normalizes outcomes using city cost multipliers for practical purchasing-power context.

The split assumptions are deliberately typical rather than universal: basic is modeled at 45% of CTC, HRA at half of basic, employee PF at your chosen percentage of basic (matched by the employer inside CTC), and the gratuity provision at 4.81% of basic — the standard actuarial rate payroll teams use. Income tax is computed on the FY 2026-27 new regime through the same engine as the income-tax calculator, including the standard deduction, rebate, and cess. If your offer letter shows a different basic percentage or a flexible-benefits bucket, expect your payslip to differ from this estimate in the same direction — the structure, not the arithmetic, is where real offers diverge.

Frequently asked questions

How do I estimate 15 LPA or 20 LPA in-hand salary?

Enter your annual CTC and review monthly take-home after modeled deductions. Use city and PF settings to approximate your specific payroll context. Under this model’s default metro structure, ₹15 lakh CTC works out to about ₹1,05,940 a month in hand and ₹20 lakh to about ₹1,33,312.

Why does the take-home percentage fall as CTC rises?

Progressive tax. At ₹12 lakh CTC the model shows an 86.8% take-home ratio because income tax is zero after the new-regime rebate; at ₹15 lakh it is 84.8%, and at ₹20 lakh it is 80.0% as slab tax scales up. PF and professional tax grow roughly in proportion to salary, so the widening gap is almost entirely tax.

Where does the rest of my CTC go if it never reaches my bank account?

Into employer-side contributions that are part of CTC but not part of gross salary: the employer’s PF match and the gratuity provision. On ₹12 lakh CTC the model books about ₹90,774 a year there. It is not money lost — PF compounds in your name and gratuity pays out after qualifying service — but it explains most of the standing gap between CTC ÷ 12 and your payslip.

Why does the calculator show zero income tax at ₹12 lakh CTC?

After the component split, employee PF, and the new-regime standard deduction, taxable income lands in the Section 87A rebate zone for FY 2026-27, so computed tax is cancelled in full. The deductions you still see at that level are PF and professional tax, not income tax. See the linked guide on ₹12 lakh salary for the full walkthrough.

Why can in-hand salary differ from this calculator?

Actual payroll depends on employer structure, allowance policy, tax declarations, and state-specific deductions. Treat outputs as planning estimates.

Can I compare two job offers here?

Yes. Use the comparison tab to evaluate nominal and cost-adjusted salary difference between two offers and city contexts.

Related tools

How to use this calculator

  • Enter your CTC

    Type your total annual cost-to-company.

  • Adjust the components

    Set basic pay, allowances, and statutory deductions as needed.

  • Review your in-hand pay

    See your estimated monthly and annual take-home salary.