Take Home Salary Calculator

CTC (Cost to Company) is the total amount your employer spends on you, including employer PF (12% of basic) and gratuity provision. Take-home salary (in-hand salary) is what actually gets credited to your bank account after deducting employee PF, professional tax, and income tax. For example, on a ₹10 LPA CTC, your take-home could be around ₹73,000/month under the New Regime in FY 2025-26.

Gross salary is what appears on your payslip before deductions. It equals CTC minus employer PF and gratuity (contributions that go to your PF and gratuity fund, not your bank). Net salary (take-home) is gross salary minus employee PF, professional tax, and income tax. For a ₹12 LPA CTC: gross is roughly ₹10.5 lakh, and take-home (new regime, no deductions) is roughly ₹8.8 lakh annually.

For most salaried employees without significant deductions (80C investments, home loan, HRA exemption), the New Regime gives a higher take-home. The New Regime has a ₹12 lakh taxable income threshold with a full rebate under Section 87A, plus a ₹75,000 standard deduction, meaning salaries up to ₹12.75 LPA are effectively tax-free. The Old Regime can be better if you have large 80C investments, home loan interest, and HRA exemptions that bring your taxable income down significantly.

HRA exemption is the minimum of three values: (1) actual HRA received from employer, (2) actual rent paid minus 10% of basic salary, and (3) 50% of basic salary for metro cities (Mumbai, Delhi, Kolkata, Chennai) or 40% for non-metro. For example, if your basic is ₹40,000/month, HRA is ₹20,000/month, rent paid is ₹15,000/month in a non-metro city: exemption = min(₹20,000, ₹15,000 minus ₹4,000, 40% of ₹40,000) = min(₹20,000, ₹11,000, ₹16,000) = ₹11,000/month.

Professional tax is a state-level tax on salaried employees. Karnataka, Tamil Nadu, Andhra Pradesh, Telangana, Gujarat, Madhya Pradesh, and Odisha charge ₹2,400/year (₹200/month). Maharashtra charges up to ₹2,500/year. West Bengal has a slab system based on monthly income. States like Rajasthan and Delhi do not levy professional tax.

Employee PF deduction is 12% of your basic salary. Employer also contributes 12% of basic to your PF, but that comes from your CTC and does not hit your take-home. So if your basic salary is ₹40,000/month, ₹4,800/month (₹57,600/year) is deducted as your PF contribution. This PF deduction counts toward your 80C limit (max ₹1.5 lakh) in the Old Regime.

Gratuity is a one-time payment the employer makes to employees who complete 5 or more years of service. It is part of your CTC as an annual provision (roughly 4.8% of basic), but it does not come out of your monthly take-home. It is paid at the time of leaving the job. Think of it as the employer setting aside money for you separately.

Yes, use the "Net to Gross" mode on this calculator. Enter your target take-home salary per month (say ₹1 lakh/month) and the calculator will work backwards to find the CTC you need, factoring in tax regime, professional tax, and PF deductions. This is useful when negotiating a salary offer.