How the CTC Calculator Works
CTC (Cost to Company) is the total amount your employer spends on you annually — but it's not what lands in your bank account, since it includes employer-side contributions you never directly receive in cash. This calculator estimates your monthly in-hand salary using a common simplified structure: your Basic salary is a percentage of CTC (40% by default, adjustable if you know your employer's actual split), and both you and your employer contribute 12% of Basic to Provident Fund.
The employer's 12% PF contribution is already counted inside your CTC but never reaches your salary account, so it's subtracted first to get your Monthly Gross. From there, your own 12% employee PF contribution and a flat ₹200/month professional tax (the typical amount in states that levy it) are deducted to arrive at your Estimated Monthly In-Hand figure.
This is a simplified estimate, not a payslip. It deliberately leaves out income tax, since that depends on your tax regime (old vs. new), other income, deductions like HRA and 80C investments, and your specific tax bracket — none of which this calculator has visibility into. It also assumes a standard PF-based structure; some employers use different allowance breakdowns, gratuity provisions, or benefits that would shift the real number. Use this for a ballpark figure when comparing offers, not as a substitute for your actual payslip.
Frequently Asked Questions
Why doesn't this include income tax?
Income tax depends on which tax regime you choose, your total taxable income, exemptions like HRA, and deductions under sections like 80C — none of which a generic CTC calculator can know. Adding a rough estimate would likely be misleading rather than helpful, so this tool sticks to what it can calculate reliably: PF and professional tax.
Why is my actual in-hand salary different from this estimate?
Real salary structures vary by employer — different Basic percentages, additional allowances, gratuity, insurance premiums, or bonuses paid separately from monthly salary. This calculator uses common defaults; your actual payslip reflects your specific employer's structure and applicable income tax.
What is professional tax?
A small state-level tax on salaried income, levied by some Indian states (not all) and typically capped around ₹200-2,500 a year depending on the state. This calculator uses a flat ₹200/month as a common approximation — your actual amount depends on where you're employed.