EDUCATION · SALARY
CTC sounds bigger than what you take home. Understand the difference between Cost to Company, gross salary, and the in-hand salary you actually receive — with a worked example below.
CTC (Cost to Company) is the total annual expense an employer incurs for you. It includes your cash salary as well as employer contributions you never receive as cash — such as employer PF and gratuity.
Gross salary is your total cash pay before deductions: basic + HRA + allowances + variable pay. It is what your payslip shows before tax and PF are deducted.
In-hand (take-home / net) salary is the amount credited to your account every month — your gross salary minus income tax, employee PF, professional tax and any other deductions.
Three reasons combine: employer contributions (employer PF, gratuity) are in CTC but not cash; income tax, employee PF and professional tax are deducted from your gross; and variable pay may not be fully paid. So in-hand is typically lower than the simple CTC ÷ 12 number.
WORKED EXAMPLE
Below is a ₹10 LPA example calculated with the same methodology and FY 2026-27 assumptions as this site’s calculator (new regime, Karnataka, estimated structure, variable pay fully payable):
| Component | Annual | Note |
|---|---|---|
| CTC | ₹10,00,000 | Total cost to company |
| Gross salary | ₹9,59,939 | Fixed + variable cash pay |
| Employee PF | -₹21,600 | Deducted at source |
| Professional tax | -₹2,400 | Karnataka |
| Income tax | -₹0 | New regime, FY 2026-27 |
| Estimated annual in-hand | ₹9,35,939 | ≈ ₹77,995/month |
This is an estimate under stated assumptions. Your real in-hand varies with your employer’s salary structure, tax regime and location — use the calculator for your own inputs.
CALCULATOR
Enter your CTC above and click “Calculate in-hand salary” to see your estimated breakup.
Enter your own CTC to see your estimated monthly take-home based on your tax regime, location and salary structure.
Calculate Your In-Hand Salary →FAQ
Yes — in this calculator employer PF and gratuity are part of CTC but are not paid to you as monthly cash. They are employer contributions that show up in your CTC but not in your bank account.
Gratuity is treated as part of CTC as an employer contribution (about 4.81% of basic per year). It is not usually paid as part of your monthly cash, so it does not appear in your in-hand figure.
Yes, because variable pay is part of gross salary and is taxed. If it is assumed fully payable it is included in your in-hand; if not, your in-hand is lower. The calculator lets you change this assumption.