Salary Calculator
From CTC to the number that actually lands in your bank account each month.
A Rs 12 lakh CTC gives about Rs 85,400 a month in hand under the new regime: the employer's PF and gratuity come out of the package first, then your own PF of Rs 72,000, professional tax of Rs 2,400, and income tax, which is nil at this level thanks to the Section 87A rebate.
How this is calculated
Year-by-year breakdown
The free in-hand salary calculator for India and the US
A Rs 12 lakh CTC is not Rs 1 lakh a month. This salary calculator walks the whole distance from the number on your offer letter to the number in your bank account: the employer's PF and gratuity come out of the package first, then your own PF, professional tax and income tax come out of the gross. Every deduction is shown as a line you can check, not folded into one mysterious figure.
Switch to USD and it becomes a take-home pay calculator for the US: pre-tax 401(k), the 2026 federal brackets and standard deduction, Social Security at 6.2% up to the wage base, and Medicare at 1.45% plus the 0.9% additional tax above $200,000. State and local income tax are not included, and the page says so rather than pretending.
Worked example: Rs 12 lakh CTC, new regime
With basic at 50% of CTC, the employer's PF is Rs 72,000 and gratuity accrual Rs 28,860, so the gross salary is about Rs 10.99 lakh. Under the new regime the Rs 75,000 standard deduction brings taxable income to about Rs 10.24 lakh, which the Section 87A rebate wipes out entirely, so income tax is zero. After your own PF of Rs 72,000 and professional tax of Rs 2,400, the take-home is about Rs 85,400 a month. The Rs 1.44 lakh of PF is not lost, it is going into your retirement corpus.
| Annual CTC | Regime | Income tax | Approx. monthly in-hand |
|---|---|---|---|
| Rs 8,00,000 | New | Nil (87A rebate) | ~Rs 57,000 |
| Rs 12,00,000 | New | Nil (87A rebate) | ~Rs 85,400 |
| Rs 25,00,000 | New | ~Rs 2.64 lakh | ~Rs 1,56,000 |
Why the basic salary percentage matters
Basic pay drives PF, gratuity and your HRA exemption. A higher basic means more forced retirement saving and a lower monthly in-hand; a lower basic means more cash now and a smaller corpus later. Move the slider and watch both numbers change, which is exactly the trade-off HR teams are making when they design a pay structure.
Compare the two Indian tax regimes properly in the income tax calculator, work out your rent exemption in the HRA calculator, and see where the PF ends up in the EPF calculator.
Key facts
| Standard deduction, new regime | Rs 75,000 for FY 2026-27 |
|---|---|
| Section 87A rebate | Nil tax up to Rs 12 lakh of taxable income |
| Employee PF | 12% of basic + DA |
| Gratuity accrual in CTC | 4.81% of basic |
| US Social Security | 6.2% up to a $184,500 wage base; Medicare 1.45% plus 0.9% above $200,000 |
How to use the Salary Calculator
- Choose India (INR) for a CTC-to-in-hand breakdown, or the US (USD) for take-home pay.
- Enter your annual CTC or gross salary.
- In India, set the basic salary share of CTC, usually 40 to 50%, and any annual bonus that is paid once a year.
- Pick the new or old tax regime, and enter your deductions if you are on the old one.
- In the US, set your 401(k) contribution percentage and filing status.
- Read the monthly take-home, the annual take-home and every deduction in the breakdown table.
Sources
- Income Tax Department, Government of India
- Employees' Provident Fund Organisation
- Internal Revenue Service, US federal tax rates
- Social Security Administration, contribution and benefit base
Last reviewed and updated: 23 August 2026. Estimates only, not financial or tax advice.
Frequently asked questions
How do I calculate in-hand salary from CTC?
Start with CTC and subtract the employer's PF contribution and the gratuity accrual, which are part of the package but never reach you, to get gross salary. From that, subtract your own PF (12% of basic), professional tax (usually Rs 2,400 a year) and income tax. Divide by 12 for the monthly figure, keeping any once-a-year bonus separate.
Why is my in-hand salary so much lower than my CTC?
Three reasons. The employer's PF and gratuity are counted in CTC but go into your retirement accounts, not your bank. Your own PF is deducted from the gross. And income tax is charged on the whole gross, including the bonus you receive only once a year. On a typical Rs 12 lakh package the gap is about Rs 15,000 a month.
What percentage of CTC is basic salary?
Most Indian employers set basic pay at 40 to 50% of CTC. It is not arbitrary: basic drives PF, gratuity and the HRA exemption, so a higher basic means more forced saving and less monthly cash.
Is the new tax regime better for salaried employees?
For most people from FY 2025-26, yes. The new regime gives a Rs 75,000 standard deduction and a Section 87A rebate that makes tax nil up to Rs 12 lakh of taxable income. The old regime only wins if your 80C, 80D, HRA and home-loan interest deductions together are large, typically above Rs 4 to 4.5 lakh. Compare both in the income tax calculator.
Does the US salary calculator include state tax?
No. It covers federal income tax, Social Security and Medicare only. State and local income tax vary from zero in Texas or Florida to over 10% at the top in California, so if you live in a taxing state your real take-home is lower than the figure shown.
Is this salary calculator free?
Yes, entirely free, with no sign-up and no ads, for both India and the US.