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CTCPlanner

CTC Calculator — from cost-to-company to in-hand

CTC (cost to company) is what your employer spends on you; in-hand is what reaches your bank. This calculator converts one to the other through the exact statutory steps for FY 2026-27, to the paisa.

Open the CTC calculator

What it means

CTC is the total annual amount an employer commits for an employee: earnings paid to you (basic, HRA, allowances, bonus) plus contributions paid for you (employer PF, employer NPS, gratuity accrual). It is always higher than gross pay, and gross is always higher than in-hand.

The formula

In-hand = CTC − employer contributions − employee deductions − income tax

Employer PF, NPS, and gratuity never touch your account, so they come off first (giving gross). Employee PF and professional tax are withheld from gross. Income tax applies to taxable income after the standard deduction and any regime-eligible deductions.

Worked example

  • CTC ₹20,00,000 on a standard structure → Basic ₹8,00,000 (40%).
  • Employer PF ₹96,000 + gratuity ₹38,480 come off the top.
  • Employee PF ₹96,000 and professional tax ₹2,400 (Karnataka) are withheld.
  • New-regime tax on the balance leaves roughly ₹1.35L–₹1.4L per month in hand.

How to use it

  1. 1Enter your annual CTC. Type the cost-to-company from your offer letter.
  2. 2Pick year and regime. Choose the financial year and old or new tax regime; the calculator supports both.
  3. 3Add your deductions. Rent for HRA, 80C investments, health insurance — the engine applies statutory caps automatically.
  4. 4Read the computation sheet. Every rupee is shown step by step: gross, deductions, tax slabs, rebate, cess, and the final in-hand.

Frequently asked questions

Why is my in-hand salary so much lower than my CTC?

Because CTC includes money you never receive directly: employer PF, employer NPS, and gratuity accrual. After removing those, employee PF, professional tax, and income tax are deducted from what remains.

Is CTC the same as gross salary?

No. Gross salary is CTC minus employer-side contributions (employer PF, NPS, gratuity). In-hand is gross minus employee deductions and income tax.

Which tax regime gives higher in-hand salary?

It depends on your deductions. With few deductions the new regime usually wins; with high HRA, 80C, and home-loan interest the old regime can win. The comparison page computes both with your actual numbers.

Does this calculator store my salary?

No. Every calculation runs in your browser; nothing you enter is transmitted or stored.

Related tools & guides

Calculations on this site are based on official government provisions and should be verified against the latest government publications (incometax.gov.in).