Salary Calculator
Salary is the money that your employer pays you on a regular basis, usually once a month. Your CTC (Cost to Company) is made up of your basic pay, allowances, benefits, and deductions. CTC is the total cost to the employer, but your take-home pay is much less after taxes and other deductions.
What is a salary calculator?
A salary calculator is a general tool that you can use to check how much money you actually take home after all your CTC deductions. You enter your CTC, bonus, and deductions (like employee PF, professional tax, and income tax). The calculator shows your gross salary, all of your deductions, and your monthly and yearly take-home pay.
Your take-home pay will be different depending on your tax regime choice (old vs. new), your Section 80C investments, and the professional tax rates in your state. Starting in FY 2025-26, salaried workers will be able to take a standard deduction of ₹75,000 under the new tax system. Keep in mind that estimates may not include things that can change, like overtime or reimbursements.
What are the components of the salary structure?
Basic Salary:
This is the fixed part of your CTC that makes up 40–50% of it. It is based on your experience, qualifications, skills, and knowledge. It is the starting point for figuring out other benefits like PF, bonuses, and gratuity.
House Rent Allowance (HRA):
Money that employees who live in rented homes get. Section 10(13A) of the IT Act says that HRA is tax-free in whole or in part, depending on the amount of rent paid, the salary, and the city of residence. HRA is fully taxable if you don't live in a rented home.
Leave Travel Allowance (LTA):
A tax-free benefit that pays for you and your family's travel within the country. To get an LTA exemption, you need to show proof of travel (tickets, boarding passes). Tax benefits are only available for real travel costs.
Professional Tax:
A tax on jobs that the state collects, with a maximum of ₹2,500 per financial year. It comes out of your monthly pay automatically, and you can deduct it from your gross income for tax purposes.
Special Allowance:
A part of your salary that can be changed to keep your CTC structure in balance. It can be used for things like transportation, medical care, or school. Unless IT rules say otherwise, this allowance is fully taxable.
Bonus/Performance Incentive:
Pay that changes based on how well a person or company does, paid once a year or once a quarter. Bonuses are fully taxable and subject to TDS, and they are usually not included in monthly take-home pay calculations.
Employee Provident Fund (EPF):
A required retirement savings plan in which both the employer and the employee put in 12% of their basic salary each month. Your contribution is tax-deductible under Section 80C (up to ₹1.5 lakh per year), but the employer's investment is part of CTC and not your take-home pay.
How do salary calculators work?
Salary calculators break down your CTC into a gross salary and calculate your net take-home pay after deductions using these formulas:
Gross Salary = CTC - (Employer PF + Gratuity + Employer Insurance)
Net Salary (Take-Home) = Gross Salary - (Employee PF + Professional Tax + Income Tax + Other Deductions)
An Example Calculation to get in-hand salary
Let's say we have a CTC of ₹5,00,000 with a bonus of ₹50,000 included in the CTC.
Step 1: Gross Salary: ₹5,00,000 - ₹50,000 = ₹4,50,000 a year (₹37,500 a month)
Step 2: The basic salary: 50% of the gross salary, which is ₹2,25,000 a year (₹18,750 a month).
Step 3: Deductions:
Tax for Professionals: ₹2,400 a year
Employee PF (12% of Basic): ₹27,000 a year
Other Deductions: ₹2,000 a year
Total: ₹31,400
Step 4: Your take-home pay: ₹4,50,000 - ₹31,400 = ₹4,18,600 a year (₹34,883 a month).
Please note that the CTC is ₹5 lakh, but the actual take-home is only ₹4.19 lakh, which is a 16.3% difference. This gap includes employer contributions (like PF and gratuity) that don't go into your account directly and required deductions ike taxes, insurance, etc.
How does CTC differ from in-hand salary?
Here is how CTC differs from in-hand salary:
Aspect | CTC (Cost to Company) | In-Hand Salary |
Definition | Total cost employer incurs for an employee annually | Actual amount credited to employee's bank account |
Components Included | Basic + Allowances + Bonuses + Employer PF + Gratuity + Benefits | Basic + Allowances - All deductions |
Deductions Applied | No deductions; gross figure | After Employee PF, Professional Tax, Income Tax |
Employer Contributions | Includes employer PF, insurance, gratuity provisions | Excludes all employer-only contributions |
How to use Stockify's Salary Calculator
Enter the amount of your annual CTC from your offer letter or pay stub.
Please list any bonuses or variable pay that are part of CTC.
Enter the monthly deductions, such as employee PF, professional tax, and other deductions.
Choose a tax system: the old one with deductions or the new one with a ₹75,000 standard deduction.
To see your gross salary, deductions, and monthly or yearly take-home pay, click "Calculate."
Advantages of Stockify's Salary Calculator
CTC-to-Take-Home Transparency:
Reveals the 15-20% gap between employer CTC cost and your actual monthly bank credits after PF, taxes, and deductions
Comparison of Old and New Tax Regimes:
Instantly shows how much money you would take home under both tax systems with a standard deduction of ₹75,000 (FY 2025–26).
State-wise Professional Tax:
Automatically applies the right professional tax slabs (up to ₹2,500 per year) based on where you live, like Rajasthan.
Adjustable Parts:
Lets you change HRA, LTA, special allowances, bonuses, and Section 80C investments to make your own calculations.
Instant Break-even Analysis:
Shows exactly how much 80C investments reduce your tax slab and boost take-home pay
Mobile-optimised & Free:
No login required, works offline after load, exports PDF payslips for job negotiations
FAQ
You can use this free online tool to figure out your real take-home pay after all deductions by entering your CTC, bonus, PF, professional tax, and income tax information.
The net salary is calculated by taking the gross salary (CTC minus employer contributions) and subtracting the total employee PF at 12% of basic, professional tax, income tax, and other deductions.
CTC includes all of the costs that the employer has to pay, such as salary, bonuses, employer PF, gratuity, and benefits. Gross pay does not include bonuses or contributions from the employer: Gross Salary = CTC - (Employer PF + Bonuses + Gratuity).
Typically, 70% to 85% of the CTC constitutes your take-home pay, depending on factors such as your tax bracket, the percentage of your basic salary, and any deductions. For a CTC of ₹8 lakh, the take-home pay is about ₹6 lakh (75%).
For employees who make up to ₹15,000 a month in basic pay (which is usually the case), the employee's PF is 12% of (Basic + DA). The employer matches 12% of the employee's pay (8.33% to the pension and 3.67% to the PF).
State tax on salaried workers, usually ₹200 a month for salaries over ₹10,000 (₹300 in February). The most you can pay in professional tax each year is ₹2,500.
4.81% of the annual basic salary, which is included in the CTC as an employer contribution. Employees can get paid after five years of working there.
The new regime is beneficial: this deduction is automatically applied to all salaried workers and pensioners, eliminating it for people who earn between ₹7 and ₹15 lakh and don't have to make big investments. It gives a ₹75,000 standard deduction. The old system is better for people who have 80C investments (₹1.5 lakh), home loan interest, HRA, and deductions that add up to ₹2.5–3 lakh+.
Under the new tax system, it's ₹75,000, and under the old system, it's ₹50,000 for FY 2025-26. This deduction is automatically applied to all salaried workers and pensioners, eliminating the need for paperwork.
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