How to use the salary / ctc calculator
- Enter your annual CTC and choose the tax regime. The default is the new regime, which most salaried employees now use.
- Set the basic salary percentage and HRA percentage from your offer letter. If you don't know them, 40% and 50% are common defaults.
- Open the PF, gratuity and professional tax section if your CTC includes employer PF or gratuity, or if your state's professional tax differs.
- For the old regime, enter your 80C, 80D and HRA exemption amounts so the comparison is fair.
- Read the monthly in-hand figure, the structure and deductions tables, the slab-by-slab tax computation, and the regime comparison.
Features
- CTC to gross to in-hand, monthly and annual
- New and old regime income tax with rebate, marginal relief, surcharge and cess
- Side-by-side regime comparison that says which one gives the lower tax
- Employer PF, PF wage ceiling, gratuity and professional tax as explicit switches
- Every assumption listed on the page; tax rules are versioned by financial year
From CTC to in-hand: the steps
Cost to company is what the employer spends, not what you receive. The calculator first removes the employer's share of PF and gratuity (if they're inside the CTC) to get the gross salary. Gross is split into basic, HRA and a special allowance that absorbs the remainder. From gross it deducts your own PF contribution, professional tax and income tax to arrive at the annual in-hand, which is divided by twelve.
Income tax is computed on gross minus the standard deduction (₹75,000 in the new regime, ₹50,000 in the old) and, for the old regime, minus professional tax and the deductions you enter. The slab table on the page shows how much tax each band contributes, then the section 87A rebate, marginal relief, surcharge for incomes above ₹50 lakh and the 4% health and education cess.
New regime versus old regime (FY 2025-26)
The new regime has lower slab rates and, since the 2025 budget, a rebate that makes tax zero for taxable income up to ₹12 lakh (₹12.75 lakh of salary after the standard deduction), with marginal relief just above that. It allows almost no deductions. The old regime keeps the older slabs and the full menu of deductions: 80C up to ₹1.5 lakh (PF counts), 80D health insurance, HRA exemption, home-loan interest and more.
As a rule of thumb, the old regime only wins if your total deductions are large, roughly ₹4–5 lakh or more at higher incomes, typically because of HRA in an expensive city plus a home loan. Enter your real deductions and let the comparison card decide.
Provident fund and gratuity
Both employee and employer contribute 12% of basic to the EPF. Contributions are mandatory on basic up to ₹15,000 per month; above that, many employers still contribute on full basic, others cap it, which is what the ceiling switch models. Gratuity accrues at 4.81% of basic and is paid out after five years of service; some companies include it in CTC, so the switch lets you remove it from the gross.