How is in-hand salary calculated from CTC?

In-hand salary = CTC minus Employer PF minus Gratuity minus Employee PF minus Income Tax minus Professional Tax. Typically 65-80% of CTC depending on tax slab and city.

What is the PF deduction on salary?

Employee PF = 12% of PF Wage (minimum ₹15,000). For a ₹15,000 PF wage, employee contributes ₹1,800/month. Employer contributes EPS ₹1,250 + EPF balance.

Which tax regime is better — New or Old?

New regime is better for incomes below ₹12.75L CTC (zero tax after ₹75k standard deduction) or those with few deductions. Old regime benefits those claiming HRA, 80C (₹1.5L), 80D (₹25k) deductions.

How does city affect in-hand salary?

City affects HRA tax exemption in Old Regime. Metro cities (Delhi, Mumbai) get 50% of Basic as HRA exemption. Chennai, Kolkata, Bangalore, Hyderabad and other cities get 40%.

How much SIP should I do on my salary?

Aim to invest 20-30% of your in-hand salary in SIP. Start with Nifty 50 index funds and increase by 10% every year as your salary grows.

India Salary Calculator 2025-26 — In-Hand, Tax & SIP Planner

Salary

Breakdown

Invest

Plan

What's your annual CTC?

Enter your Cost to Company — we'll break it down into take-home, taxes and savings in the next step.

Annual CTC Cost to Company

₹

Tax Regime 2025-26

City Type HRA exemption differs — affects Old Regime tax

Your Experience Level see market CTC range

Your salary breakdown

Here's exactly where every rupee of your CTC goes each month.

Monthly Payslip Breakdown

CTC & Tax Details

Set your financial goal

Tell us what you want to achieve — we'll show you exactly how to get there with SIP investing.

Goal Amount house / car / retirement / corpus

₹

Goal Timeline how many years to achieve goal

5 years

Quick:

Expected Return annual return rate

12 % p.a.

Quick:

Existing Savings optional current corpus

₹

Your investment plan

Here's your personalised financial roadmap based on your salary and goals.

🔀 Job Offer Comparator

Got a new offer? Enter the CTC to instantly see your real in-hand gain.

₹

💡 Tax Saving Action Plan

Personalised steps to legally cut your tax bill this financial year.

🏠 Loan & EMI Affordability

Based on your in-hand salary, here's the max loan you can comfortably afford.

Wealth Growth Projection

SIP Scenarios at 12% p.a.

About This Tool

What is CTC?

CTC (Cost to Company) is the total annual cost an employer spends on an employee. It includes your gross salary plus employer PF contribution, gratuity, health insurance and other benefits. Your actual in-hand salary is always lower than CTC.

How is PF Calculated?

Employee PF = 12% of PF Wage (minimum ₹15,000/month). Even if your basic is less than ₹15,000, PF is calculated on ₹15,000. Employer contributes EPS ₹1,250/month + remaining to EPF. Total PF saved = employee + employer contribution.

New vs Old Tax Regime

New Regime: Zero tax up to ₹12.75L income (₹12L taxable after ₹75k standard deduction), lower slabs, no deductions allowed.

Old Regime: Higher slabs but allows HRA, 80C (₹1.5L), 80D (₹25k), NPS deductions. Better for those with high rent and investments.

HRA Exemption by City

HRA exemption reduces taxable income in Old Regime only.

Metro cities (Delhi, Mumbai): HRA exempt = 50% of Basic.
Other cities (Bangalore, Hyderabad, Pune etc.): HRA exempt = 40% of Basic.

How Much SIP to Do?

Rule of thumb: Invest at least 20-30% of in-hand salary in SIP. Start with Nifty 50 Index Fund for safety. Add Flexi Cap for diversification. Increase SIP by 10% every year as your salary grows.

In-Hand Salary by CTC

Approximate in-hand (New Regime):
• 3L CTC → ~₹21,000/mo
• 4L CTC → ~₹28,000/mo
• 6L CTC → ~₹43,000/mo
• 8L CTC → ~₹56,000/mo
• 10L CTC → ~₹68,000/mo
• 12L CTC → ~₹79,000/mo
• 15L CTC → ~₹96,000/mo
• 20L CTC → ~₹1,20,000/mo
• 30L CTC → ~₹1,79,000/mo

Frequently Asked Questions

Is this salary calculator accurate for 2025-26? +

Yes. This calculator uses the latest Income Tax slabs for FY 2025-26 including Budget 2025 New Regime slabs (0-4L: 0%, 4-8L: 5%, 8-12L: 10%, 12-16L: 15%, 16-20L: 20%, 20-24L: 25%, 24L+: 30%), standard deduction of ₹75,000, 87A rebate up to ₹12L taxable income (zero tax for CTC up to ~₹12.75L), and accurate PF formula as per EPFO guidelines. Results are estimates — actual deductions may vary slightly based on employer's salary structure.

Why is my in-hand salary less than CTC/12? +

CTC includes many components that are not paid monthly — employer PF (₹1,800+/month), gratuity (4.81% of basic), health insurance premiums, and other benefits. After subtracting employee PF, income tax, and professional tax, the actual in-hand is typically 65-80% of CTC.

Which mutual funds are best for SIP in India 2025? +

For beginners: Nifty 50 Index Fund (low cost, stable). For growth: Parag Parikh Flexi Cap Fund. For tax saving: ELSS funds under 80C. For aggressive growth: Nifty Midcap 150 Index Fund. Always invest via direct plans on platforms like Groww to save on commission.

How to reduce income tax on salary? +

In Old Regime: Invest ₹1.5L in 80C (ELSS, PPF, EPF), claim ₹25k under 80D (health insurance), NPS ₹50k under 80CCD(1B), and HRA exemption. In New Regime: The only deduction is ₹75,000 standard deduction — no other exemptions. Compare both before choosing.

What is gratuity and is it included in CTC? +

Gratuity is a one-time payment by the employer after 5 years of service. It equals 4.81% of your annual basic salary. Most companies include gratuity in CTC, which reduces your monthly gross salary — but you receive it as a lump sum when you leave after 5+ years. Tax-free up to ₹20L.