| Component | Amount (₹) |
|---|
| Particulars | Monthly (₹) |
|---|
Note: Employer PF, Gratuity & Insurance are CTC components.
Are you looking for a Take Home Pay Calculator to determine your exact in-hand salary? Our tool helps you calculate net pay after tax, PF, and other deductions accurately.
Understanding your take-home salary — the amount that lands in your bank account — is one of the most important parts of personal financial planning.
Whether you’re negotiating a new job offer, planning your monthly budget, saving for the future, or filing your taxes, knowing how your Cost to Company (CTC) turns into net salary (take-home pay) can make a big difference. This is where a Take Home Pay Calculator becomes incredibly useful.
Table of Contents
What Is The Take Home Pay Calculator?
A Take Home Pay Calculator is an online tool that helps you estimate how much money you’ll receive in your bank account each month or year after all mandatory deductions are made.
Take Home Pay = Gross Salary – Deductions
This calculator even considers bonuses, reimbursements, and other perks to provide a clear understanding of your net income versus your gross compensation (CTC).
Benefits Of Using A Take Home Pay Calculator
Many job seekers see only the CTC figure when evaluating an offer. But CTC includes many components that don’t directly go into your bank account — such as employer PF contributions, gratuity provisions, or non-cash benefits.
A Take Home Pay Calculator offers the following benefit.
- Understand your real monthly income
- Compare salaries across job offers
- Plan your budget and expenses realistically
- Optimize tax decisions (old vs. new tax regime)
- Prepare for income tax filing
Salary Components in India
To understand the take-home pay, you need to understand what the components are involved in the gross salary.
Basic Pay ( + DA if applicable)
Basic pay is the core part of your salary—the fixed amount you earn every month before adding allowances or bonuses.
The following components depend on the basic pay
- HRA
- EPF Contribution (12% of Basic Pay)
- Gratuity ((Basic Pay × 15 × years of service) ÷ 26))
- Leave encashment (Unused paid leaves × per-day basic pay)
- Overtime Pay
- Bonus
Variable Pay
Variable pay is linked to your performance. In CTC, the company mentions the amount considering 100% variable pay. In reality, you hardly get 100% variable pay unless you are an outstanding performer.
Variable Pay depends on the following
- Individual performance
- Company performance
- Company profitability
HRA + Convenience + LTA
HRA
HRA means House Rent Allowance, usually 30-40% of your basic pay. If you pay house rent, the amount is tax-exempt, considering the following rule.
Metro: 50% of Basic Pay as house rent is tax-exempt
Non-Metro: 50% of Basic Pay as house rent is tax-exempt
If you don’t pay house rent or if you are staying in your own house, the whole HRA amount is taxable.
Convenience
A convenience allowance is for the daily commute to the office. The whole amount is taxable; however, up to Rs 1600 per month was tax-exempt earlier. The convenience allowance is often clubbed with special pay allowance nowadays.
LTA
LTA ( Leave Travel Allowance ) is the amount the company pays for your travel costs when you are on leave. The LTA amount is non-taxable twice in a 4-year slab ( Only in the Old tax regime)
Provident Fund
Provident fund has two components. One is the employee’s share, and the other is the employer’s share. Both are included in your CTC. Both the employer and employee pay 12% of basic pay as EPF contribution to EPFO.
In the employer contribution of 12%, 8.33% goes to the EPF contribution, and the remaining goes to the pension scheme.
The government pays 8-8.5% interest yearly on the EPF contribution. The whole maturity amount is not taxable.
Graduity
Gratuity is a lump-sum payment that an employer gives you as a thank-you for long, continuous service when you leave the company. Gratuity is a component of your CTC
You will be entitled to get gratuity only after 5 years of continuous service with the company. The gratuity calculation rule is as follows.
Gratuity = (Basic Pay + DA) × 15 × Years of Service ÷ 26
Please note that for gratuity calculation, the basic pay is the last basic pay that is shown in your salary slip. Also, the years of service are rounded off. For example, if you have worked for 6 years and 7 months, it will be considered as 7 years.
Company Medical Insurance
We have a misconception that the company pays for medical insurance. But in reality, it is a component of your CTC. It is often in the range of 10K-40K, depending upon your band and position.
Special Allowance
The whole amount under the special allowance is taxable. Companies usually club many components into that, like the convenience, DA, bonuses, flexi payment, and many more.
Professional Tax
Professional tax is capped at Rs 200 per month, which means Rs 2400 per year. The whole amount is tax-exempt.
Income Tax
Your salary slip will show a component called TDS ( Tax Deducted From Source), which is basically the advance tax you are paying every month to the income tax department.
The final reconciliation happens when you file your yearly income tax return. If the ITR shows that you have paid extra tax, you will get a refund; if not, you will have to pay the remaining tax.
There are two tax regimes in India under which you can claim tax deductions.
- Old Tax Regime ( More deductions allowed but high tax rates)
- New Tax Regime ( Less deductions but low tax rates)
Old Tax Regime Vs New Tax Regime
| Feature | Old Tax Regime | New Tax Regime |
|---|---|---|
| Tax Rates | Higher rates, more slabs | Lower rates, more simplified slabs |
| Standard Deduction | ₹50,000 | ₹75,000 |
| 80C Deductions (PF, LIC, ELSS, etc.) | Allowed (up to ₹1.5 lakh) | Not allowed |
| 80D (Health Insurance) | Allowed | Not allowed |
| HRA Exemption | Allowed | Not allowed |
| LTA Exemption | Allowed | Not allowed |
| Home Loan Interest (Section 24) | Allowed | Not allowed |
| Professional Tax | Allowed | Not allowed |
| Compliance & Planning | Requires tax planning & proof | Simple, minimal compliance |
| Best Suitable For | People with many deductions & investments | People with fewer deductions |
Old Tax Regime Vs New Tax Regime: Tax Slabs
| Annual Taxable Income (₹) | Old Tax Regime Tax Rate | New Tax Regime Tax Rate |
|---|---|---|
| Up to ₹2,50,000 | 0% | N/A |
| ₹2,50,001 – ₹3,00,000 | 5% | N/A |
| ₹3,00,001 – ₹5,00,000 | 5% | N/A |
| ₹5,00,001 – ₹10,00,000 | 20% | N/A |
| Above ₹10,00,000 | 30% | N/A |
| Up to ₹4,00,000 | N/A | 0% |
| ₹4,00,001 – ₹8,00,000 | N/A | 5% |
| ₹8,00,001 – ₹12,00,000 | N/A | 10% |
| ₹12,00,001 – ₹16,00,000 | N/A | 15% |
| ₹16,00,001 – ₹20,00,000 | N/A | 20% |
| ₹20,00,001 – ₹24,00,000 | N/A | 25% |
| Above ₹24,00,000 | N/A | 30% |
Old Tax Regime Vs New Tax Regime Sample Illustration
| Annual Income (₹) | Old Tax Regime Tax Payable (₹) | New Tax Regime Tax Payable (₹) | Notes |
|---|---|---|---|
| 5,00,000 | 12,500 | 5,000 | The old regime is higher due to higher slab rates |
| 10,00,000 | 1,12,500 | 55,000 | Old regime higher due to higher slab rates |
| 15,00,000 | 2,12,500 | 1,25,000 | New regime benefits mid-income earners |
| 20,00,000 | 3,12,500 | 2,25,000 | Top earners may benefit from slab-wise rates |
| 25,00,000 | 4,12,500 | 3,25,000 | New regime progressive slabs reduce tax moderately |
How To Calculate Take Home Salary
To calculate the Take-Home Salary, you need to enter the following inputs. All are yearly figures.
- Your CTC
- Your basic salary
- Your variable pay at 100% as per CTC
- HRA + Convenience + LTA
- Special allowance
- Company medical insurance
- Gratuity amount
- Actual variable pay percentage
- Any other allowance
The Take Home Pay Calculator assumes the following.
- You contribute 12% of your basic salary to EPF
- You are taxed as per the new tax regime ( As per the new tax rule, the old tax regime does not make any sense)
Based on the given inputs, the calculator will show you the following data.
- Your monthly take-home salary
- Your yearly take-home salary
- Your taxable yearly salary
- TDS
- Employer PF
- Employee PF
- Professional tax
The calculator will also show the detailed salary breakdown and the monthly salary slip for your reference.
Conclusion: Take Home Pay Calculator
A Take Home Salary Calculator isn’t just a neat gadget — it’s a financial planning essential for anyone earning a salary in India.
By breaking down your CTC into real, spendable income, it empowers you to negotiate better, save smarter, and plan your taxes effectively.
Whether you’re a fresh graduate evaluating your first job offer or an experienced professional planning investments, using a salary calculator can clarify your financial picture and help you make informed decisions.
Start with an online salary calculator, input your CTC, choose your state, select the tax regime, and view your detailed take-home pay breakdown — you might be surprised how much those tax slabs and deductions affect your net salary.
