CTC → in-hand salary

Cost to Company is what your employer spends on you. In-hand salary is what actually reaches your bank account. The gap is usually 15–25%, which can come as a surprise the first time you see it.

CTC → in-hand salary

Standard 40 % Basic + 40 % HRA (metro) breakup, with PF, ESI, PT, TDS deducted.

Monthly breakup

Runs entirely in your browser. Nothing you type is sent anywhere or stored.

How it is calculated

1

Split CTC into components — commonly 40% Basic, 40% of Basic as HRA (metro) or 50% in some structures, then Special Allowance as the balancing figure.

2

Remove the employer's own costs. Employer PF and gratuity provision sit inside CTC but never reach you.

3

Deduct employee PF at 12% of Basic + DA, subject to the wage ceiling your employer applies.

4

Deduct ESI at 0.75% if gross wages are at or below the ESI wage ceiling.

5

Deduct professional tax per your state's slab, and TDS based on your regime and declared investments.

Worked example

On a ₹8,00,000 CTC with a 40% Basic and metro HRA, Basic works out to ₹26,667 a month and gross to roughly ₹63,584. After employee PF, professional tax and TDS, monthly in-hand typically lands in the ₹55,000–₹58,000 range depending on regime and declarations.

What to watch for

Frequently asked questions

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

Because CTC includes money your employer spends that never reaches you — employer PF, gratuity provision, insurance premiums — plus your own deductions for PF, professional tax and TDS.

Is a higher Basic good or bad?

It cuts monthly cash because PF is 12% of Basic, but it raises your retirement corpus and your gratuity, both of which are calculated on Basic + DA. For most people a higher Basic is better over a full career.

Does this calculator handle the new tax regime?

Yes — TDS is estimated for the regime you select. Use the Old vs New regime comparator if you want to see both side by side.

More Salary & Payroll calculators

There is an easier way to do this each month.

Garuda HR looks after payroll, attendance, leave and statutory compliance for Indian teams — the same arithmetic, run for you every month, with a full audit trail. We would be glad to show you around.