Free tool · updated 16 October 2026

CTC to in-hand salary calculator

An offer says “₹12 lakh CTC”. Your bank account will see a lot less each month. Put in the offer’s numbers and see what actually arrives, month by month, under India’s new tax regime.

Annual CTC (₹ lakh)The total in the offer letter, for example 12 for ₹12 lakh Variable pay (% of CTC)The part that depends on performance or the company. 0 if none Expected payout of the variable (%)What you realistically expect to receive Joining bonus (₹, one time)Often counted inside CTC; paid once Basic pay (% of fixed pay)Usually 40 to 50. Check your salary breakup Insurance and other benefits (₹ a year)Counted in CTC but not paid to you in cash Stock or ESOP value in CTC (₹ a year)Not cash in hand; set 0 if none Professional tax (₹ a year)Up to ₹2,500 a year, depending on your state

Deductions Employer PF is part of my CTCMost offers include it PF is capped at ₹15,000 basic a monthTick if your employer follows the wage ceiling Gratuity is part of my CTC4.81% of basic

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How this calculator works

Start from CTC. CTC (cost to company) is what the employer spends on you in a year. It is not what you receive.
Remove what isn’t monthly salary. Variable pay, joining bonus, insurance and stock are taken out of the fixed pool first.
Split the fixed pool. Basic is the share you enter. Employer PF is 12% of basic and gratuity is 4.81% of basic, and both sit inside CTC, so they come out before your gross salary.
Deduct from gross. Your own PF (12% of basic), professional tax and income tax.
Tax. New regime slabs with the ₹75,000 standard deduction, the section 87A rebate (no tax up to ₹12 lakh taxable income, with marginal relief just above it), surcharge where it applies, and 4% cess.

What it assumes

Income tax uses the new tax regime slabs from Budget 2025: nothing up to ₹4 lakh, then 5%, 10%, 15%, 20% and 25% in ₹4 lakh steps, and 30% above ₹24 lakh. These were reported unchanged for the 2026-27 financial year. Slabs can change each February, so confirm on incometax.gov.in.
Tax is worked out on salary only. Other income, capital gains and the old regime’s deductions (80C, HRA and so on) are not included.
The variable pay is taxed in the year you receive it, at the payout percentage you enter.
The number is an estimate for planning. Your payslip is the final word; ask the HR team for the full salary breakup.

Common questions

Why is my in-hand salary so much lower than CTC ÷ 12?

Because part of CTC never reaches you as monthly salary: employer PF, gratuity, insurance, stock and variable pay are all counted in CTC. Your own PF, professional tax and income tax then come out of the rest. See CTC vs in-hand salary, explained.

Is variable pay guaranteed?

No. Ask whether it is paid on company performance, team performance or your own, and what percentage most people received last year. Then enter a realistic payout above.

Does this work for internships?

Internship stipends are usually fixed monthly amounts with no PF or gratuity. Use the “Annual CTC” box with your stipend × 12 and set variable pay to 0, and untick PF and gratuity. Stipends under the basic exemption limit usually have no income tax at all.

Which regime does it use?

The new regime, which is the default for salaried people unless you opt out. If you plan to claim many old-regime deductions, compare both before choosing.

Estimate only, not tax or financial advice. Shortlists isn’t a tax advisor.