In-Hand Salary & CTC Breakdown Calculator

Estimate take-home pay from CTC or monthly gross

Cost to Company, gross salary and in-hand salary describe different layers of compensation. CTC can include employer-paid items that never arrive in the employee's bank account. Gross salary is the earnings figure before employee deductions. Take-home, or net salary, is what remains after employee PF, professional tax, estimated income-tax withholding and any other payroll deductions entered into the calculator.

This tool is deliberately configurable because payroll rules vary. You can start from Annual CTC or Monthly Gross, choose a basic-salary percentage, enable or disable EPF, choose capped or uncapped PF basis, enter the wage cap used by your payroll, enter professional tax and add estimated TDS or other deductions.

Core calculation model

For gross mode, monthly gross is the entered value. Estimated basic salary = gross × basic percentage ÷ 100. Employee PF = 12% × PF wage basis when enabled. In capped mode, PF wage basis is the lower of estimated basic and the cap entered by the user. In uncapped mode, the full estimated basic is used. Employer PF is shown separately using the same simplified 12% basis for planning.

Estimated take-home = monthly gross − employee PF − professional tax − estimated TDS − other monthly deductions. Standard deduction is shown as a taxable-income reference rather than subtracted directly from take-home, because it affects tax calculation rather than being a separate amount normally removed from the payslip each month.

How Annual CTC mode is estimated

When CTC includes employer PF, gross cannot be found by simply dividing CTC by twelve. The calculator uses a small iterative estimate: it starts with monthly CTC, calculates employer PF from the implied basic, subtracts that employer contribution, and repeats until the gross estimate stabilizes. This is useful for a quick offer-letter comparison, but real CTC may also include gratuity, insurance, bonuses, meal benefits or other employer costs that require a detailed component sheet.

Step-by-step salary breakdown

1. Select Annual CTC when comparing an offer, or Monthly Gross when reading a payslip.
2. Enter the salary and the approximate basic-salary percentage used by the employer.
3. Enable EPF if applicable and select capped or uncapped wage basis. Enter the wage cap actually used in your payroll.
4. Enter monthly professional tax where applicable to your state and salary band.
5. Enter estimated monthly TDS and any other regular deductions such as insurance or voluntary deductions.
6. Read Monthly Gross, employee PF, employer PF and the estimated net salary together rather than looking only at CTC.

India and Bangladesh use cases

For India, the calculator helps job seekers compare a headline CTC with likely monthly cash flow, especially when PF and employer contributions are part of the package. Statutory thresholds and tax rules can change, and professional tax is state-specific, so the fields are editable rather than hard-coded as legal advice. Confirm the latest values on the actual offer letter and payroll policy.

Bangladesh salary structures use different statutory systems and deductions, so the Indian EPF labels should not be treated as Bangladesh payroll law. Bangladeshi users can still use Monthly Gross mode as a generic gross-to-net splitter by disabling EPF and PT where they do not apply, then entering local monthly deductions in the other-deductions field.

Why the result can differ from a payslip

Actual salary may include HRA, special allowance, bonus, variable pay, leave encashment, reimbursements, provident fund rules, ESI, gratuity provisions, tax regime choices and employer-specific benefits. TDS also depends on annual taxable income and declarations, not merely one month's gross. The calculator therefore labels the result as an estimate and lets you enter your own TDS rather than pretending to file a tax return.

Frequently asked questions