Corrected 29 August 2026. An earlier version of this page excluded target variable pay from both received cash and taxable salary, which understated income tax. Figures are recalculated under model PS-A3. What changed →

Short answer: your CTC is not your salary. Employer provident fund and the gratuity provision are employer costs that never enter your account, and a target variable component is normally paid separately rather than monthly. On a ₹10 lakh CTC the recurring monthly credit is about ₹69,797 — not the ₹83,333 that dividing by twelve suggests. Over a full year, with all target variable paid, annual net cash is ₹9,37,569; with none paid it is ₹8,37,569.

Salary Calculator — CTC to In-Hand

Find out what actually reaches your bank account every month

Annual CTC (Cost to Company)—

Target variable pay (% of CTC)—

Actual payout of target variable—

Target variable pay is not guaranteed. Set what you expect to actually receive. Only the amount paid is cash and only the amount paid is taxed.

Basic salary (% of CTC)—

Provident fund basis

Capped at ₹15,000 basic On full basic wages

Both are permitted. Check your payslip: if your PF line is more than ₹1,800 a month, your employer contributes on full basic.

Annual professional tax—

Defaults to ₹0. Professional tax is levied by state under Article 276 and is nil in several states. Enter the amount for your own employment jurisdiction.

Assumptions: HRA = 40% of basic · Tax Year 2026-27, new regime under section 202 · standard deduction ₹75,000 under section 19(1) Table Sl. No. 2 · gratuity provision (basic ÷ 12) ÷ 26 × 15 · employer NPS is fixed at ₹0 and not modelled in this release.

💰 Cash you receive

Regular monthly net
Your recurring bank credit. Excludes variable pay.—

Annual net cash
Includes variable actually paid.—

Annual net ÷ 12
Not recurring monthly pay — an average only.—

% of CTC received as annual net cash—

📋 CTC breakup (annual)

CTC (total package)—

Fixed annual cash—

Target variable—

Actual variable paid—

Salary cash (fixed + variable paid)—

Basic—

HRA—

Other allowances—

🏢 Employer costs inside CTC

Employer PF—

Gratuity provision—

Employer NPS (not modelled)₹0

Total employer cost + target variable—

🧾 Income tax, Tax Year 2026-27

Taxable salary (after s.19 std deduction)—

Slab tax (s.202)—

Rebate (s.156(2)(a))—

Rebate marginal relief (s.156(2)(b))—

Surcharge—

Surcharge marginal relief—

Cess (4%)—

Total income tax—

Effective rate on CTC—

➖ Your deductions

Employee PF—

Professional tax (state-dependent)—

Income tax—

Total deductions—

📅 Regular month (excludes variable pay)

Fixed monthly gross—

Basic—

HRA—

Other allowances—

Employee PF—

Professional tax—

TDS (annual tax ÷ 12)—

Total monthly deductions—

Regular monthly net—

🔀 If variable pay is not fully paid

Payout	Annual net cash	Income tax	% of CTC
None paid	—	—	—
Half paid	—	—	—
All paid	—	—	—

Unpaid target variable is not a deduction and not money lost. It is pay that was targeted and not earned in that year, and it is not taxed.

Rates and slabs are indicative, as of August 2026

Why Your CTC is Not Your Salary

When a company offers you "₹10 Lakh CTC", you might expect about ₹83,000 per month. The reality? Your actual in-hand salary will be closer to ₹70,000. The remaining goes toward employer PF, gratuity provision, employee PF, professional tax, and income tax.

Quick Reference: CTC to In-Hand

Annual CTC	Regular monthly net	Annual net cash all variable paid	Annual net cash no variable paid	% of CTC
₹5 LPA	₹33,099	₹4.47 L	₹3.97 L	89.4%
₹10 LPA	₹69,797	₹9.38 L	₹8.38 L	93.8%
₹15 LPA	₹99,027	₹13.38 L	₹12.52 L	89.2%
₹20 LPA	₹1,28,203	₹17.38 L	₹15.80 L	86.9%
₹30 LPA	₹1,79,004	₹24.48 L	₹22.42 L	81.6%
₹40 LPA	₹2,26,901	₹31.23 L	₹28.48 L	78.1%
₹50 LPA	₹2,74,799	₹37.98 L	₹34.54 L	76.0%

Model PS-A3, Tax Year 2026-27. 40% basic, 10% target variable, provident fund on the capped basis, professional tax excluded because it varies by state. Regular monthly net is the recurring bank credit and excludes variable pay; annual net cash includes variable actually paid.

Approximate. Assumes 40% basic, 10% bonus, new tax regime FY 2025-26 and FY 2026-27.

💡 Negotiation Tip: When comparing job offers, always compare in-hand salary — not CTC. Use this calculator to compare offers side by side.

⚠️ Disclaimer: This calculator provides estimates based on standard salary structures and the new tax regime. Actual salary varies based on company policy. Consult your HR or CA for exact figures.

Also useful: Income Tax Calculator | Gratuity Calculator | HRA Calculator | CTC to In-Hand Guide

Salary Calculator — CTC to In-Hand Take Home Pay