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ToolBoxGenie

Salary Calculator

Calculators · Added 14 August 2026

An offer letter quotes cost to company, which includes money that never reaches your bank account. This calculator splits a CTC into its usual components, subtracts the deductions that come out of a payslip, and shows the monthly figure that actually arrives — with the assumptions visible and adjustable rather than buried.

Cost to company — the whole figure on the offer letter.

% of CTC

Typically 40–50%.

% of basic

50% in metros, 40% elsewhere.

% of basic

12% statutory, matched by the employer.

/ month

Varies by state; zero in several.

Your own figure — this tool does not compute tax.

How to use the salary calculator

  1. 1Enter the annual CTC exactly as the offer letter states it.
  2. 2Adjust the component percentages if your offer specifies them. Basic pay is normally 40–50% of CTC and HRA is normally 40–50% of basic; the defaults are conventions, not rules.
  3. 3Set the provident fund rate. The statutory figure is 12% of basic, contributed by both you and your employer.
  4. 4Enter your monthly professional tax if your state levies one, and your own estimate of annual income tax. This tool does not compute tax — see the FAQ for why.
  5. 5Press Calculate. The result shows what makes up the CTC on one side and what comes out of it on the other.

Examples

A ₹12 lakh offer with standard structure

Input
₹12,00,000 CTC, basic 40%, HRA 40% of basic, PF 12%, ₹200 professional tax, no tax entered
Result
Gross ₹11,19,323 · monthly take-home about ₹88,277 before income tax

About ₹80,700 of the CTC never appears on the payslip — it is the employer's PF share and the gratuity accrual.

The same offer with tax included

Input
As above, plus ₹60,000 of annual income tax
Result
Monthly take-home about ₹83,277

Tax is the largest single deduction for most salaries, which is why leaving it blank gives an optimistic figure.

A high-basic structure

Input
₹12,00,000 CTC with basic at 50% instead of 40%
Result
A lower take-home — more goes into PF, which is deducted from the payslip

A higher basic increases retirement savings and reduces the amount reaching your account each month. Neither is strictly better.

About the salary calculator

Why the offer letter number is not your salary

Cost to company is an employer-side accounting figure. It answers the question 'what does this hire cost us', and it therefore includes things that are costs to the company but not income to you: the employer's provident fund contribution, gratuity being accrued against service you have not yet completed, sometimes insurance premiums and meal allowances.

Understanding the distinction matters most at the point of comparison. Two offers at the same CTC can produce materially different monthly amounts depending on how much sits in employer contributions and how the basic pay is set. A structure with a high basic pushes more into provident fund — better long-term saving, less cash each month — while a structure heavy on allowances does the reverse.

The practical advice that follows is simple and widely ignored: ask for the component-level breakup before accepting, not after joining. It is a normal request, and the difference between structures is large enough to be worth a conversation.

The deductions, and which ones you control

Employee provident fund is 12% of basic pay and is not optional for most salaried employees below the statutory wage ceiling. It is a deduction in the sense that it does not reach your account this month, but it is not a loss — it is your money accruing interest in your name, matched by an equal employer contribution.

Professional tax is levied by state rather than nationally, capped at ₹2,500 a year where it applies, and absent entirely in several states. It is small enough that people forget it exists and precise enough that leaving it out makes a monthly estimate visibly wrong.

Income tax is the large one, and the one this tool deliberately leaves to you. The regime choice alone can move the liability by a substantial margin, and the exemptions that matter most — house rent allowance in particular — depend on facts about your rent and your city that no CTC figure contains. The right way to use this calculator is to get the pre-tax position from it, then apply a tax figure you have worked out properly or been given by a professional.

Frequently asked questions

Why does this not calculate my income tax?
Because it cannot do so honestly from the inputs on this page. The liability depends on which regime you elect, which deductions and exemptions you actually claim, your HRA exemption based on rent paid and city, and any income outside this job. A tool that produced a tax figure from a CTC alone would be presenting a guess with the confidence of a calculation, on a page where people are making real financial decisions. Enter your own figure instead.
What is the difference between CTC, gross and take-home?
CTC is what the employer spends on you, including contributions you never see. Gross salary is CTC minus those — the employer's PF share and any gratuity accrual. Take-home is gross minus your own deductions: employee PF, professional tax and income tax. The gap between CTC and take-home commonly runs from around 12% before tax to 30% or more once a higher slab applies, which is why the headline number on an offer letter is a poor guide to your monthly budget.
Are the default percentages correct for my offer?
They are conventions, not rules. Employers structure CTC differently and there is no statutory ratio for basic pay in most cases. If your offer letter breaks down the components, enter those figures. If it does not, ask for the breakup before accepting — two offers with identical CTC can differ by thousands a month depending on structure.
Why is gratuity counted inside CTC?
Because many employers include it, as the amount they are setting aside against future gratuity liability — conventionally 4.81% of basic, which is fifteen days' pay per year on a 26-day month. It is real money the employer is committing, but it is not payable until you complete five years, and you receive nothing if you leave before then. Untick the box if your offer excludes it.
Is my salary information sent anywhere?
No. This runs as JavaScript in your browser tab. Nothing you type is transmitted, logged or stored by this site, which is the point — salary figures are exactly the kind of data that should not be typed into a page that uploads them.

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