GUIDE · FY 2026–27
A clear, step-by-step guide to converting your CTC into the monthly in-hand salary you actually receive, using Indian FY 2026-27 rules — with a worked ₹10 Lakh example throughout.
CTC (Cost to Company) is the total amount an employer spends on you in a year. It includes your cash salary plus employer contributions such as employer PF and gratuity. Because some of CTC is not cash you receive, in-hand is always lower than CTC.
Gross salary is your total cash pay before deductions: basic, HRA, other allowances and variable pay. It is the base from which your in-hand is calculated.
The main deductions are income tax (TDS), employee PF and professional tax, plus any additional deductions you choose such as voluntary PF. In-hand = gross salary − these deductions.
Employee PF is typically 12% of your basic salary, deducted at source and credited to your provident fund. It reduces your take-home but builds a retirement corpus.
Professional tax is a small state levy collected by employers. It varies by state — Karnataka and West Bengal charge about ₹2,400/year, Maharashtra and Tamil Nadu about ₹2,500/year, while Delhi does not charge it.
Income tax is based on your tax regime. Under the FY 2026-27 new regime, income up to ₹4L is tax-free and up to ₹12L is effectively tax-free after the Section 87A rebate, with higher slabs above that. The old regime uses different slabs and lets you claim more deductions.
Employer PF is the 12% your employer contributes to your PF account. It is part of your CTC but is not paid as monthly cash, so it does not appear in your in-hand figure.
Gratuity is a benefit for long service, calculated at roughly 4.81% of basic per year (15/26 × monthly basic). Here it is treated as part of CTC, not as part of your monthly take-home.
Variable pay (bonus or performance pay) is part of gross salary and is taxable. Because it is not guaranteed, the calculator lets you assume it is fully payable, not payable, or partially payable.
STEP BY STEP
Using this site’s methodology (new regime, Karnataka, estimated structure, variable pay fully payable), a ₹10 LPA CTC breaks down like this:
| Step | Amount |
|---|---|
| Annual CTC | ₹10,00,000 |
| Gross salary | ₹9,59,939 |
| Employee PF | -₹21,600 |
| Professional tax | -₹2,400 |
| Income tax | -₹0 |
| Annual in-hand | ₹9,35,939 |
| Monthly in-hand | ₹77,995 |
Estimated under stated assumptions. Your in-hand varies with your exact salary structure, tax regime and location.
| Term | Includes | Appears on payslip as cash? |
|---|---|---|
| CTC | Cash + employer PF + gratuity | Partly |
| Gross salary | Cash pay only (before deductions) | Yes, before deductions |
| In-hand salary | After tax, PF and professional tax | Yes, what you receive |
Enter your annual CTC, choose your tax regime, state and whether variable pay is fully payable. The calculator shows your monthly in-hand, a full breakdown and every assumption it used. Adjust the inputs to match your real situation.
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
Subtract employer-only components (employer PF, gratuity) from CTC to get gross salary. Then subtract employee PF, professional tax and income tax to reach annual in-hand, and divide by 12 for the monthly figure.
Using the same methodology as this site, a ₹10 LPA CTC under the new regime with an estimated structure nets roughly the monthly in-hand shown in the example below. Your figure varies with your structure, tax regime and state.
No. Gratuity is treated as an employer contribution within CTC (about 4.81% of basic per year) and is not paid as part of your monthly cash, so it is not in your in-hand figure.
Employer PF is a contribution to your provident fund account, not part of your monthly cash pay. It builds up separately and is not part of your in-hand salary.