Enter your total annual Cost to Company
What is an In-Hand Salary Calculator?
An in-hand salary calculator helps you find out exactly how much money will be credited to your bank account each month after all statutory deductions. In India, your CTC (Cost to Company) and your actual take-home salary can differ significantly — sometimes by 20% to 30%.
This calculator accounts for all standard deductions applicable under Indian salary structure for FY 2025-26, including Employee Provident Fund (EPF), Professional Tax, and income tax under both the new and old tax regimes.
Understanding your in-hand salary is essential for budgeting, planning loan EMIs, calculating monthly savings, and evaluating job offers accurately.
How is In-Hand Salary Calculated?
The basic formula for calculating monthly in-hand salary is:
Step 1: Calculate Gross Monthly Salary
Gross monthly salary = Annual CTC ÷ 12. This is before any deductions.
Step 2: Calculate EPF Deduction
Employee's EPF contribution = 12% of Basic Salary. Basic salary is typically 40–50% of CTC. So on a ₹10 LPA CTC with ₹4 LPA basic, EPF = 12% × ₹33,333 = ₹4,000/month.
Step 3: Subtract Professional Tax
Professional tax varies by state. In Maharashtra: ₹200/month for salaries above ₹10,000. In some states it is nil.
Step 4: Calculate and Deduct Income Tax
Income tax is calculated on taxable income (gross salary minus applicable exemptions and deductions). The resulting annual tax is divided by 12 to get monthly TDS (Tax Deducted at Source).
Example Calculation
Note: Actual in-hand salary may vary based on your HRA, special allowances, and exact tax computation.
Frequently Asked Questions
CTC (Cost to Company) is the total amount your employer spends on you annually, including your salary, PF contributions, gratuity, and other benefits. In-hand salary (or take-home pay) is the amount actually credited to your bank account after all deductions like employee PF (12% of basic), professional tax, and income tax.
Employee Provident Fund (EPF) is calculated at 12% of your basic salary plus DA. The employer also contributes 12%, but 8.33% goes to EPS and 3.67% to EPF. Only the employee's 12% is deducted from your in-hand salary.
The new tax regime (default from FY 2023-24) offers lower slab rates but no deductions. The old regime allows deductions like HRA, 80C (up to ₹1.5L), 80D, and home loan interest. Generally, if your total deductions exceed ₹3.75 lakh, the old regime is better.
Professional tax is a state-level tax levied on salaried employees. The amount varies by state — in Maharashtra it is ₹200/month for salaries above ₹10,000. Some states like Delhi and Haryana do not levy professional tax.
No. HRA exemption is the minimum of: actual HRA received, 50% of basic salary if metro (40% for non-metro), or actual rent paid minus 10% of basic salary. The remainder is taxable.
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Disclaimer: Results are for informational and educational purposes only — not financial, tax, or legal advice. Tax slabs, rates (EPF, PPF, home loan), and rules shown are based on data available in 2025 and may change. Always verify with a qualified professional or official government sources before making financial decisions.