How this calculator works
- Step 1Start with CTC₹18,00,000the yearly cost to your employer
- Step 2Remove what is not paid monthly₹16,74,000gross pay after employer PF and gratuity
- Step 3Take off PF and income tax₹14,59,360₹90,000 PF and ₹1,24,640 tax a year
- Step 4Divide by 12₹1,21,613monthly take-home in the default plan
Employer PF and gratuity are part of CTC, but you do not receive them in your monthly pay. Gross pay is what remains. Your own PF, any professional tax and income tax come out of gross pay.
Income tax uses the same engine and dated rules as our Income Tax Calculator, for tax year 2026-27 under the Income-tax Act, 2025. Your salary is the only income counted.
PF: full basic or the wage ceiling
- Full basic₹7,500a month: 12% of ₹62,500 monthly basic. Take-home ₹1,21,613.
- ₹15,000 ceiling₹1,800a month: 12% of ₹15,000. Take-home ₹1,27,313.
What this estimate leaves out
- Uneven monthsTax is spread evenly. Employers adjust monthly deductions for bonuses, declarations and joining dates.
- Other deductionsVoluntary PF, NPS, loans, meal cards and insurance premiums are not included.
- Other incomeInterest, rent and capital gains can change your tax but are not counted here.
- Fixed assumptionsA resident employee below 60; employer PF assumed tax-free; old-regime limits not checked.
Worked example
- Gross pay
CTC − employer PF − gratuity- Take-home
gross pay − employee PF − professional tax − income tax
- Gross pay₹18,00,000 − ₹90,000 − ₹36,000₹16,74,000
- Employee PF12% of ₹7,50,000 basic− ₹90,000
- Taxable income₹16,74,000 − ₹75,000 standard deduction₹15,99,000
- Income taxslab tax ₹1,19,850 + 4% cess, rounded to ₹10− ₹1,24,640
- Take-home a year₹14,59,360
- Take-home a month₹14,59,360 ÷ 12₹1,21,613.33
Take-home here is 81.08% of CTC. Changing any one component updates every line above.
Reading your result
The headline is the monthly amount credited to your bank account if deductions were even across the year. The table beneath splits CTC into what you receive and what is held back.
The line below the table shows the other regime. With the defaults, the old regime with ₹2,00,000 of deductions gives ₹1,11,226 a month.
Related salary questions
Take-home pay is one view of a package. Raises, gratuity and pay periods each have their own calculation.
To compare an offer with your current pay, the salary hike calculator shows the raise in rupees and after inflation. The gratuity calculator estimates the lump sum from your last wage and years of service, and explains when the five-year rule applies.
To convert pay between hourly, weekly, monthly and yearly amounts, use the salary calculator.
Common mistakes
Mistake: Dividing CTC by 12 and calling it salary.
Instead: Remove employer PF and gratuity first; they are not paid out monthly.
Mistake: Leaving out your own PF.
Instead: Check your payslip for the basis your employer uses: full basic or the wage ceiling.
Mistake: Counting a variable bonus as certain.
Instead: Enter only the variable pay you expect, or 0 to see fixed pay alone.
Mistake: Expecting the same tax every month.
Instead: Read the monthly figure as an average; actual deductions shift as the year goes on.
Rules change with each Budget and PF rules can change too. Check your payslip, the Income Tax Department’s guidance or a chartered accountant before you rely on these figures.
This is an educational estimate built by a software engineer, not tax or payroll advice.
Checking the method
A separate script recomputes every test case from the published PF, professional tax and income-tax rules, without using the calculator's code.
Read how we test our calculators, or browse more money calculators.