Risorra Toolsby Risorra Labs

CTC to in-hand salary calculator

An offer letter quotes cost to company. This works out what reaches your bank account each month, after provident fund, gratuity, professional tax and income tax.

Turn a CTC into a monthly salary

Most Indian offer letters use 40% to 50%. Your letter will say.

ELSS, LIC, tuition fees. Counts only under the old regime, and PF already fills part of the ₹1.5 lakh.

₹200 a month in most states. Delhi, Haryana and UP charge none — put zero.

Tax regime

Why the number in the offer letter is not the number in the bank

Cost to company is what you cost the company, not what you are paid. Two chunks of it never reach your payslip at all: the employer's 12% provident fund contribution, and the gratuity the company sets aside against the day you leave. Both are real money and both are yours eventually, but neither shows up on the first of the month.

From what is left — the gross salary — your own 12% PF is deducted, then professional tax, then income tax. The figure at the top of the result is what survives all of that.

Basic pay does most of the work

PF and gratuity are both computed on basic pay, so the share of your CTC classified as basic decides how much gets locked away. A 40% basic leaves more in hand each month; a 50% basic pushes more into PF, which is not a loss so much as a forced saving at a decent rate of interest. Your offer letter states the split — use the real number rather than the default.

What this does not model

Variable pay and joining bonuses are often folded into a headline CTC and paid annually rather than monthly, so a CTC with a large variable component will overstate what lands each month. NPS contributions, employer-paid insurance premiums, meal cards and leave travel allowance are also left out. If your structure has them, subtract them from the CTC before you type it in.

This is a calculator, not financial advice. It shows what the arithmetic produces from the numbers you type. Rates, charges and tax treatment change, and your own circumstances decide whether a product suits you. Confirm the figures with the bank or provider before you commit.

Frequently asked questions

Is employer PF part of my CTC?

Almost always, yes. Indian employers include their own 12% provident fund contribution in the CTC figure they quote, which is why the gross on your payslip is lower than the CTC in your offer letter.

How is gratuity calculated in a CTC?

Companies typically provision 4.81% of basic pay a year, which is the standard approximation of the statutory formula spread across a year. You only actually receive it after five years of continuous service.

Should I pick the new or the old regime?

For most salaried people with modest deductions the new regime costs less. Run the figure both ways here, or use the income tax calculator for a side-by-side comparison with a slab breakdown.

Why is my professional tax different?

It is a state tax, so it varies. Maharashtra, Karnataka, West Bengal and Tamil Nadu charge roughly ₹200 a month; Delhi, Haryana and Uttar Pradesh do not levy it at all. Set the field to match your state.

Does this account for variable pay or bonuses?

No. It treats the whole CTC as evenly paid across twelve months. If a chunk of yours is an annual bonus or performance-linked variable, subtract it from the CTC first and treat it separately.