Use this calculator to turn a CTC offer into ctc to in hand salary per month. Enter your CTC in lakh per year. The tool splits it into basic pay, PF, gratuity and professional tax, then shows an estimated monthly in-hand salary after income tax under the new tax regime.
Remember, the result is an estimate. Every company builds its salary structure in its own way, so read your offer letter line by line and enter the numbers you see there when you can.
What is CTC in salary
CTC full form in salary is Cost to Company. It is the total amount a company spends on you in one year. It includes money you get in your bank account and money the company pays on your behalf, such as its share of PF and gratuity. Some offers also add insurance premium, a joining bonus or a yearly variable bonus to the CTC. So CTC salary means the cost of hiring you, not what you take home.
LPA full form in salary is Lakh Per Annum, that is, lakh rupees per year. A 6 LPA offer means a CTC of ₹6,00,000 a year. Divide by 12 and you get ₹50,000 a month, but your in-hand will be lower than that.
Gross salary vs net salary
| Term | Meaning |
|---|---|
| CTC | Everything the company spends on you in a year, including its PF share and gratuity |
| Gross salary | CTC minus employer PF and gratuity: basic, HRA and other allowances before any deduction |
| Net salary (in-hand) | Gross salary minus your PF, professional tax and income tax (TDS) |
So what is gross salary? Gross salary meaning in one line: your pay before deductions. Net salary meaning: the amount that actually reaches your bank account each month. In gross vs net salary, the gap is your own PF, professional tax and income tax.
How the CTC calculator works out ctc to in hand salary
- Basic pay: taken as 50% of CTC. Many companies keep basic between 40% and 50%.
- Employer PF: 12% of basic, paid by the company into your PF account. It is part of CTC but not part of your monthly pay.
- Gratuity: 4.81% of basic, set aside by the company. You get it only if you leave after about 5 years of service.
- Gross salary: CTC minus employer PF and gratuity.
- Employee PF: another 12% of basic is cut from your gross pay every month.
- Professional tax: a small state tax, taken as ₹200 a month. Some states do not charge it, and the yearly limit is ₹2,500.
- Income tax: worked out on your yearly gross under the current new tax regime slabs, after the standard deduction for salaried people.
What is PF in salary? PF full form in salary is Provident Fund, a savings fund run by EPFO. Your 12% and the company's 12% both go into it, and you can withdraw it later with interest. Some companies count PF only on the first ₹15,000 of basic, which means a smaller cut and a higher in-hand. The PF percentage in salary is therefore 12% of basic, not 12% of CTC.
CTC to in hand salary examples for 3, 4, 6, 8, 10 and 12 LPA
These worked examples use the method above with basic at 50% of CTC, PF on full basic and ₹200 professional tax. The last column is before income tax. At these levels, tax under the new regime is often small or nil after rebate, but enter your CTC in the tool to see the tax line for the current slabs.
| CTC | CTC per month | Basic per month | Employer PF | Gratuity | Gross per month | Your PF cut | In-hand before tax |
|---|---|---|---|---|---|---|---|
| 3 LPA | ₹25,000 | ₹12,500 | ₹1,500 | ₹601 | ₹22,899 | ₹1,500 | ₹21,199 |
| 4 LPA | ₹33,333 | ₹16,667 | ₹2,000 | ₹802 | ₹30,532 | ₹2,000 | ₹28,332 |
| 5 LPA | ₹41,667 | ₹20,833 | ₹2,500 | ₹1,002 | ₹38,165 | ₹2,500 | ₹35,465 |
| 6 LPA | ₹50,000 | ₹25,000 | ₹3,000 | ₹1,202 | ₹45,798 | ₹3,000 | ₹42,598 |
| 8 LPA | ₹66,667 | ₹33,333 | ₹4,000 | ₹1,603 | ₹61,063 | ₹4,000 | ₹56,863 |
| 10 LPA | ₹83,333 | ₹41,667 | ₹5,000 | ₹2,004 | ₹76,329 | ₹5,000 | ₹71,129 |
| 12 LPA | ₹1,00,000 | ₹50,000 | ₹6,000 | ₹2,405 | ₹91,595 | ₹6,000 | ₹85,395 |
So the 4 lpa in hand salary is close to ₹28,300 a month before tax, the 6 lpa in hand salary is close to ₹42,600, and the 8 lpa in hand salary is close to ₹56,900. The 3 lpa in hand salary, or 3 lakh per annum in month, is about ₹21,200. Using the same method, 3.5 LPA gives about ₹24,800, 4.5 LPA about ₹31,900 and 7 LPA about ₹49,700. For 15 LPA, 20 LPA or 30 LPA offers, income tax becomes a big part of the gap, so use the calculator.
Why two people with the same CTC get different in-hand pay
- Variable pay: if part of the CTC is a yearly bonus, it is not paid every month.
- PF on capped basic: PF on ₹15,000 only gives a higher monthly in-hand than PF on full basic.
- State: professional tax is charged in some states and not in others.
- Insurance and meal cards: some companies include these in CTC.
- Tax regime: the tool uses the new regime. If you choose the old regime and claim deductions, your tax will differ.
CTC vs in hand for government jobs
Government offers are not given as CTC. Pay is fixed by a pay level, and DA, HRA and transport allowance are added on top. For those jobs, use the 7th CPC salary calculator. Bank jobs have their own scale: see SBI PO in hand salary and IBPS PO in hand salary on our exam pages. The meaning of DA, HRA, ESI and NPS is in our salary terms guide.
Comparing private careers? Look at typical pay on software engineer, data analyst and highest paying jobs in India.
Questions students ask
What is CTC in salary?
CTC means Cost to Company. It is the total yearly cost of hiring you, including your gross pay, the employer's PF share, gratuity and sometimes bonus and insurance. Your in-hand salary is always lower than CTC divided by 12.
What is the 5 lpa in hand salary per month?
With basic at 50% of CTC, PF on full basic and ₹200 professional tax, 5 LPA gives about ₹35,500 a month before income tax. If PF is counted only on ₹15,000 of basic, in-hand is a little higher.
What is the 10 lpa in hand salary?
With the same method, 10 LPA gives about ₹71,100 a month before income tax. Enter 10 in the calculator to see the income tax under the current new regime slabs and the final in-hand.
What is the 12 lpa in hand salary?
About ₹85,400 a month before income tax, with basic at 50% of CTC and PF on full basic. Variable pay, insurance and your state's professional tax can change this by a few thousand rupees.
What is the difference between gross salary and CTC?
Gross salary is CTC minus the employer's PF contribution and gratuity. It is your monthly pay before your own PF, professional tax and income tax are cut.
Is PF taken from CTC or from basic?
PF is 12% of basic pay, not of CTC. Both you and the company pay 12%. Some companies count it only on the first ₹15,000 of basic, which keeps the monthly cut smaller.