In-Hand Salary Calculator (FY 2025-26)
Find out your real monthly take-home pay from your CTC. This calculator deducts EPF, gratuity, professional tax and income tax, and compares the old vs new tax regime for AY 2026-27.
Calculate Your Take-Home Salary
Enter your annual CTC and salary structure to see your net monthly in-hand salary under both tax regimes.
What Is In-Hand Salary?
In-hand salary — also called take-home or net salary — is the amount that actually lands in your bank account every month after all deductions. It is almost always significantly lower than your CTC, and the gap surprises many people receiving their first offer letter. Understanding how your CTC translates into real monthly cash is essential for budgeting, planning EMIs and negotiating job offers with confidence.
How In-Hand Salary Is Calculated From CTC
Your CTC (Cost to Company) is the total amount your employer spends on you in a year. To arrive at take-home pay, we work through several layers:
- Remove employer contributions: The employer's 12% EPF contribution and the gratuity provision (4.81% of basic) are part of CTC but never paid to you as cash.
- Arrive at gross salary: CTC minus those employer costs gives your gross salary.
- Deduct your own contributions: Your 12% EPF contribution, professional tax and income tax (TDS) are subtracted from the gross.
- Divide by 12: The remaining annual figure divided by twelve is your monthly in-hand salary.
This calculator performs all four steps and shows the result under both the old and new tax regimes for FY 2025-26.
New Tax Regime — FY 2025-26 (AY 2026-27)
The new regime is now the default and offers attractive lower rates with a ₹75,000 standard deduction. The slabs are: nil up to ₹4 lakh; 5% from ₹4–8 lakh; 10% from ₹8–12 lakh; 15% from ₹12–16 lakh; 20% from ₹16–20 lakh; 25% from ₹20–24 lakh; and 30% above ₹24 lakh. Thanks to the Section 87A rebate, anyone with taxable income up to ₹12 lakh pays zero tax, which makes the new regime the better choice for most salaried employees who don't claim large deductions.
Old Tax Regime — FY 2025-26
The old regime keeps higher slab rates (nil up to ₹2.5 lakh, 5% to ₹5 lakh, 20% to ₹10 lakh, 30% above) but lets you claim a wide range of deductions: Section 80C investments up to ₹1.5 lakh, 80D health insurance, HRA exemption, home loan interest under Section 24 and more. If your total deductions are large — typically above ₹3–4 lakh — the old regime can deliver a higher in-hand salary, which is why this tool compares both side by side.
Worked Example
Consider a ₹12 lakh CTC with basic at 50%. Basic is ₹6 lakh, so employer PF is ₹72,000 and the gratuity provision is about ₹28,860, leaving a gross salary of roughly ₹10.99 lakh. After deducting your ₹72,000 EPF, ₹2,400 professional tax and income tax, the new regime (with income under the ₹12 lakh rebate threshold) typically yields a higher take-home of around ₹85,000–₹90,000 per month, versus a lower figure in the old regime unless substantial deductions are claimed.
How to Increase Your Take-Home Salary
- Pick the right regime: Compare both every year — the better option can change as your deductions change.
- Optimise your salary structure: A lower basic reduces PF deductions and slightly raises take-home, though it also lowers your retirement savings.
- Claim all eligible deductions (old regime): Maximise 80C, 80D, HRA and home loan benefits.
- Use tax-free reimbursements: Components like meal cards, LTA and telephone reimbursement can reduce taxable salary.
- Remember PF is your money: While EPF lowers your in-hand pay, it builds a substantial tax-advantaged retirement corpus.
Note: This is a simplified estimate for FY 2025-26 using a standard salary structure and typical professional tax. It does not capture every allowance, perquisite or state-specific rule. Consult your HR or a qualified tax advisor for an exact figure based on your salary slip.
Frequently Asked Questions — In-Hand Salary Calculator
In-hand salary (also called take-home or net salary) is the amount that actually reaches your bank account each month after all deductions. It is your gross salary minus your provident fund contribution, professional tax and income tax (TDS). It is always lower than your CTC because CTC includes employer contributions and benefits that you never receive as cash.
Start with CTC and subtract the employer's PF contribution and gratuity provision to get your gross salary. From the gross, deduct your own EPF contribution (12% of basic), professional tax and the annual income tax, then divide by 12. This calculator does all of that automatically and shows you the result under both the old and new tax regimes.
CTC (Cost to Company) is the total amount your employer spends on you, including components you never see as cash — the employer's 12% PF contribution, gratuity provisions, insurance premiums and sometimes bonuses or stock. After removing these employer costs and your own PF, professional tax and income tax, the take-home is typically 70%–85% of CTC depending on salary level and tax regime.
For most salaried people in FY 2025-26, the new tax regime gives a higher take-home because of lower slab rates, a ₹75,000 standard deduction and a full rebate making income up to ₹12 lakh tax-free. The old regime can still win if you claim large deductions such as 80C (₹1.5 lakh), 80D, home loan interest and HRA exemption. This calculator compares both so you can pick the better one.
The main deductions are: employee EPF contribution (12% of basic salary), professional tax (a small state levy, up to ₹2,500 per year), and income tax deducted at source (TDS). In the old regime you can lower your taxable income — and therefore your tax — using deductions like 80C, 80D, HRA and home loan interest, which increases your net pay.
No. Your own 12% EPF contribution is deducted from your gross salary and is not part of your monthly take-home, though it is your money growing in your PF account. The employer's matching 12% contribution is part of your CTC but is never paid to you as cash. So EPF reduces your in-hand salary while building your retirement corpus.