CTC to In-Hand Salary Calculator — What Will You Actually Earn?
8LPA actually kitna in-hand hai? Sach jaano. — Get your real monthly take-home salary with FY 2025-26 tax slabs.
Enter annual CTC in rupees (e.g., 800000 for 8 LPA)
+ Add Offer Letter Details (Optional)
Quick Answer
For most service company freshers, take your CTC and subtract 25-35% to get your approximate monthly in-hand salary. A ₹6 LPA package typically gives ₹38,000-44,000 per month. A ₹10 LPA package gives roughly ₹58,000-68,000 monthly after PF, TDS, and professional tax deductions.
Last updated: April 2026 · Based on FY 2025-26 tax slabs
Why Your CTC and In-Hand Salary Are So Different in India
When you receive your first job offer in India, the CTC (Cost to Company) mentioned can be quite misleading. A ₹8 LPA package doesn't mean you'll receive ₹66,666 per month. The actual in-hand salary is significantly lower due to various deductions and components. According to a 2024 survey of 500+ engineering freshers, 68% were surprised their first payslip was 30-40% lower than their CTC.
How Indian Companies Structure Salaries
Basic Salary: Usually 40-50% of CTC in service companies (TCS, Infosys, Wipro) and 50-60% in product companies. This is crucial as PF and gratuity are calculated on basic.
HRA (House Rent Allowance): Typically 40-50% of basic salary for metros. You can claim tax exemption on HRA if you pay rent.
The Impact of PF, TDS, and Professional Tax on Your Salary
PF (Provident Fund): Both you and your employer contribute 12% of basic (capped at ₹1,800/month if basic is ₹15,000 or more). This is a mandatory deduction that goes to your retirement corpus.
Professional Tax:₹200/month in most Indian states (Karnataka, Maharashtra, etc.). Some states like Delhi don't charge professional tax.
Old Tax Regime vs New Tax Regime — Which Is Better for Freshers in 2026?
For most freshers (CTC under ₹12 LPA), the New Tax Regime introduced in Budget 2023 is typically better as it has lower tax rates and you don't need to maintain rent receipts or investment proofs. However, if you pay significant rent (₹20,000+ per month) in a metro city and plan to invest ₹1.5 lakh in 80C instruments, the Old Regime might save more — our calculator compares both scenarios.
How to Read Your Offer Letter Before Using This Calculator
Look for the salary breakup table in your offer letter. Identify: Basic salary, HRA, Special allowance, Variable pay percentage, and any joining/retention bonuses. If the breakup isn't provided, that's a red flag — always ask HR for a detailed structure before accepting.
✓Key Takeaways
- In-hand salary is typically 65-75% of your CTC for most Indian companies
- PF deduction is calculated on Basic salary, not total CTC — lower basic means lower deduction but also lower retirement savings
- New Tax Regime is better for most freshers under ₹12 LPA unless you have significant HRA exemption and investments
- Variable pay (if any) is not guaranteed — calculate your guaranteed monthly income separately
- Always ask for salary breakup before comparing offers — don't compare just CTC numbers
About This Tool
This calculator uses FY 2025-26 Indian income tax slabs, standard EPF contribution rates (12% of basic), and average professional tax rates by state. Data is reviewed and updated every quarter. This tool is built specifically for Indian employment context and should not be used for other countries.