CTC to in-hand salary calculator (India, FY 2026-27)
Compare two job offers side-by-side. New vs old regime, EPF, HRA, gratuity — itemised. Your numbers stay in your browser.
New regime: simpler slabs, ₹12L effectively tax-free via §87A.
Metro = Mumbai, Delhi, Kolkata, Chennai (50 % HRA cap). Everywhere else = 40 %.
Most Indian offers set Basic at 40 % — increase pushes EPF & gratuity up.
Bonus / RSU vesting paid through the year.
AdvancedHRA split · age · 80C · 80D · NPS · gratuity
Tax-side cap is 50 % metro / 40 % non-metro — beyond that gets no exemption.
Statutory rate is 12 %. Capped at ₹15k/mo basic by EPFO.
Most large employers show it; some startups don't until 5 years' service.
Monthly take-home · New regime
₹94,276 /mo
₹11,31,312 per year, after taxes & PF
CTC composition
Gratuity shown at 4.81% of basic — a CTC-listing convention. The Payment of Gratuity Act 1972 only pays out after 5 years of continuous service (15 days' last-drawn basic × completed years). Treat the line item as deferred compensation, not guaranteed take-home.
Annual deductions
- Employee PF (12 % basic)
- ₹21,600
- Professional tax
- ₹2,400
- Standard deduction
- −₹75,000
- Taxable income
- ₹10,80,312
- Slab tax
- ₹0
- Health & education cess (4 %)
- ₹0
- Total tax
- ₹0
State-varied — most states levy ₹2,400/year. Karnataka, Tamil Nadu, Telangana, West Bengal sit around this; Maharashtra is ~₹2,500. Some states (e.g. Punjab, Haryana) levy none.
Annual gross
₹11,55,312
Annual tax
₹0
Annual in-hand
₹11,31,312
How to read your CTC breakdown
Every Indian offer letter ships the same line items: Basic, HRA, Special Allowance, Variable Pay, and a few employer contributions (PF, gratuity) that look like benefits but are really just CTC inflation. Understanding which buckets actually hit your bank account is the whole job of this calculator.
Basic salary
Usually 40 % of CTC. It is the base for almost every other calculation — HRA, gratuity, EPF — so a higher basic raises your retirement contributions but lowers your in-hand. Most companies set it at 40 % to balance the two.
HRA (House Rent Allowance)
Typically 50 % of basic in metro cities, 40 % elsewhere. The number on your offer letter is what you receive; the exemption (what you do not pay tax on, old regime only) is the minimum of three legs — actual HRA, rent minus 10 % of basic, and 50/40 % of basic by city. If you do not pay rent or do not collect rent receipts, you cannot claim HRA exemption.
Employer PF & Gratuity
These are statutory contributions your employer makes on top of your cash pay — but companies show them inside CTC to inflate the headline number. They never hit your bank account during the year. Employer PF goes to EPFO and you collect it when you leave or retire; gratuity is paid only after 5 years of service.
Tax
Income tax is calculated on your taxable income = gross cash CTC (i.e. CTC minus employer PF minus gratuity) minus the standard deduction (₹75 k new, ₹50 k old), HRA exemption (old only), and Chapter VI-A deductions (80 C, 80 D, NPS — old only). The result is taxed through slab brackets, then surcharge (above ₹50 L) and 4 % health & education cess get added on top. Below the §87A threshold (₹12 L new, ₹5 L old) the slab tax is rebated to zero.
Comparing two offers
The shareable comparison link is the point of this tool. Enter Offer A, click "Compare another offer", enter Offer B, and copy the URL — you and the person you are negotiating with both see the same monthly delta. Most offer comparisons collapse to a single number: monthly in-hand after the optimal regime. Anything else (signing bonus, equity grants, vest schedule, location adjustment) you have to factor in separately.
Disclaimer: This is an estimate based on FY 2026-27 slabs as published in Budget 2026. Surcharge marginal relief, multi-state professional-tax variance, ESOP perquisites, and senior-citizen old-regime quirks are simplified. Talk to a chartered accountant before filing your ITR.
Frequently asked
The questions every jobseeker we have talked to ends up asking.
CTC ("Cost to Company") is the total annual amount your employer spends on you — including non-cash items like employer PF contribution, gratuity accrual, and sometimes insurance premiums. In-hand salary is what actually lands in your bank account after employee PF, professional tax, and income tax are deducted. A ₹15 LPA CTC typically becomes roughly ₹1,00,000–₹1,11,000 per month in-hand, depending on regime, city, and your declared deductions.
Your numbers stay in your browser
No salary information ever leaves your device. Comparison links encode inputs into the URL fragment, which is never sent to a server.
FY 2026-27 slabs, hand-verified
Tested against ClearTax across five income bands; matches within ₹100. Updated when the next Finance Act ships.
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