CTC Calculator
Calculate your in-hand salary and understand your complete CTC structure — basic, HRA, EPF, bonuses, deductions and tax — under both the new and old tax regimes.
Salary Breakdown under New Tax Regime (2025-2026)
What is CTC?
CTC, or Cost to Company, is the total annual amount your employer spends on you. It bundles together your basic salary, allowances like HRA and DA, and benefits such as the employer's provident fund contribution. The number on your offer letter is rarely the amount that reaches your bank account — your in-hand pay is what remains after deductions.
This CTC Calculator breaks your package down into its components, applies the statutory deductions that lower your take-home, and shows your net salary on both a monthly and annual basis. You can export the full breakdown as a PDF or Excel file.
How to Use This CTC Calculator
- Enter your CTC: Type your total package in the "Cost to Company" field and choose whether the figure is Yearly or Monthly.
- Adjust the salary structure (optional): Open Advanced Settings to change how your CTC splits across Basic, HRA, DA, LTA, Special Allowance and Performance Bonus. The defaults (Basic 40%, HRA 20%, DA 10%) reflect a common Indian structure, but yours may differ — check your offer letter.
- Pick your tax regime: The calculator defaults to the New regime (FY 2025-26). Switch to Old if you want to claim HRA exemption and Section 80C deductions.
- Set your deductions: Keep EPF and Professional Tax ticked if they apply to you. On the Old regime, enter your monthly rent and 80C investments to calculate exemptions.
- Read your result: The right panel shows your net monthly and annual salary, a full earnings and deductions breakdown, and your cost-to-company breakup. Use Save to PDF or Export Excel to keep a copy.
Understanding Your Salary Breakdown
Your CTC is made up of earnings and deductions. The earnings side is what you are credited; the deductions side is what is withheld before you are paid.
Earnings
- Basic Salary — the fixed core of your pay and the base for EPF and gratuity calculations.
- HRA — House Rent Allowance, which can be partly tax-exempt under the old regime if you pay rent.
- DA, LTA and Special Allowance — additional allowances that together make up your gross salary.
Deductions
- EPF — your provident fund contribution is 12% of basic salary, with the employer matching it.
- ESI — Employee State Insurance applies only when monthly wages are ₹21,000 or below (employee 0.75%, employer 3.25%).
- Professional Tax — a state-level professional tax, capped at ₹2,500 per year where it applies.
- Income Tax — calculated on your taxable income after the standard deduction and any regime-specific exemptions.
If you manage payroll for a team rather than checking your own salary, TankhaPay's payroll software automates these calculations across your whole workforce.
New vs Old Tax Regime
This tool calculates on the new tax regime for FY 2025-26 by default. Under the new regime, you get a standard deduction of ₹75,000 and pay no income tax on taxable income up to ₹12 lakh, but you cannot claim HRA exemption or Section 80C deductions. The old regime has a lower standard deduction of ₹50,000 but lets you reduce taxable income through HRA, 80C and other exemptions.
Which one leaves you with more in-hand pay depends on your rent and investments. For a detailed comparison, read our guide on the old vs new tax regime and the current income tax slabs. To understand how a package is structured before you negotiate, see our breakdown of salary components.
FAQs
01. What is CTC and how is it different from in-hand salary?
CTC is the total annual amount an employer spends on you, including basic salary, allowances and benefits. In-hand salary is what reaches your bank account after deductions such as your EPF contribution, professional tax and income tax. In-hand pay is always lower than CTC.
02. Why is my in-hand salary lower than my CTC?
Your in-hand salary is reduced by statutory and tax deductions: the employee EPF contribution (12% of basic), professional tax, income tax, and ESI where applicable. The calculator subtracts these from your gross to show your net pay.
03. Does this calculator use the new or old tax regime?
It defaults to the new tax regime for FY 2025-26 (standard deduction ₹75,000, no tax on taxable income up to ₹12 lakh). You can switch to the old regime to factor in HRA exemption and Section 80C deductions.
04. How is the EPF contribution calculated?
The employee EPF contribution is 12% of basic salary, and the employer contributes a matching amount. The employee share is deducted from your salary, which is why it lowers your in-hand pay.
05. When does ESI apply to my salary?
ESI applies when monthly wages are ₹21,000 or below. The employee contributes 0.75% and the employer 3.25%. Above that threshold ESI does not apply, and the calculator excludes it automatically.
06. Is the TankhaPay CTC Calculator free to use?
Yes. The calculator is completely free, requires no login, and lets you export your salary breakdown as a PDF or Excel file.