Take-Home Salary Calculator
Turn annual CTC into monthly in-hand salary with automatic tax and gratuity.
How the Take-Home Salary Calculator works
Turn annual CTC into monthly in-hand salary with automatic tax and gratuity. Below is the exact mathematical or algorithmic model used by this compensation utility, along with its key operating assumptions.
Take-home pay = Gross earnings − employee PF − professional tax − calculated income tax − other payroll deductions. Estimated gratuity uses 15 days of basic wages for each completed eligible year.Step-by-step workflow
- Enter your headline compensation, basic pay share, or career dates in the Take-Home Salary Calculator inputs.
- The payroll engine evaluates statutory rules (Take-home pay = Gross earnings − employee PF − professional tax − calculated income tax − other payroll deductions. Estimated gratuity uses 15 days of basic wages for each completed eligible year.) and compares applicable FY 2026–27 tax or tenure thresholds.
- Review the monthly and annual breakdown to verify what lands in your bank account versus long-term benefits.
Worked example & key advantages
A ₹12 lakh CTC can produce a meaningfully lower cash salary after employer benefits, PF, tax and variable pay are separated. Edit the suggested breakup using your offer letter for a closer estimate.
Why use this Take-Home Salary tool
- Built around Indian payroll conventions, including FY 2026–27 tax slabs, ₹75,000 standard deduction, EPF, and 15/26 gratuity math.
- Editable salary components so you can match your exact offer letter or payslip annexure.
- Private client-side calculation—compare job offers and appraisal increments without sharing salary data.
Important Assumptions & Scope
- Suggested basic pay is 40% of CTC and HRA is 50% of basic.
- PF is estimated at 12% of basic and capped at the common statutory wage base by default.
- Income tax is calculated automatically using salary, employee PF and professional tax; use the full tax calculator for additional exemptions and deductions.
- Annual gratuity provision is estimated at 15/26 of one month’s basic pay; exit gratuity is shown after five completed years, with exceptions possible.
- Professional tax varies by state; the editable default is ₹2,400 annually.
Frequently Asked Questions — Take-Home Salary
Clear answers to common questions about methodology, edge cases, and privacy.
Why is CTC higher than take-home salary?
CTC includes employer contributions, variable pay and benefits in addition to the cash salary credited to you.
Is the suggested salary breakup universal?
No. Employers structure compensation differently. Replace every suggested value with figures from your offer letter or payslip.
Does the estimate include income tax?
Yes. It automatically compares old and new regimes using the salary, PF and professional-tax values entered. Use the full income-tax calculator for HRA, insurance, NPS and other deductions.
How is gratuity estimated?
The annual CTC provision uses 15/26 of one month’s basic pay. The exit estimate multiplies that amount by completed service years and shows zero below the standard five-year eligibility threshold; legal exceptions can apply.
Does this calculator store my salary?
No. Every calculation happens locally in your browser and no salary value is sent to a server.