Salary Calculator
| Component | Monthly (₹) | Annual (₹) |
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What This Tool Does
This calculator converts your Cost to Company (CTC) into your actual take-home salary — the amount that lands in your bank account each month after standard deductions like EPF and professional tax.
You can also use this Post Office RD Calculator.
How It’s Calculated
Gross Salary = CTC − Bonus (if bonus is part of your CTC)
Take-Home Salary = Gross Salary − Total Deductions
Total deductions typically include:
- Professional tax (state-levied, capped at ₹2,500 per year)
- Employee Provident Fund (EPF) contribution — 12% of basic salary, up to a statutory wage ceiling of ₹15,000/month
- Employer’s EPF contribution, which is also subtracted from CTC even though the employee doesn’t receive it directly
- Any additional deductions like insurance premiums
Worked example: CTC of ₹9,00,000, with a 10% bonus included.
- Bonus: 9,00,000 × 10% = ₹90,000
- Gross salary: 9,00,000 − 90,000 = ₹8,10,000
- EPF (employee): 12% of ₹15,000/month = ₹1,800/month = ₹21,600/year
- EPF (employer): same, ₹21,600/year
- Professional tax: ₹2,500/year
- Total deductions: 21,600 + 21,600 + 2,500 = ₹45,700
- Take-home: 8,10,000 − 45,700 = ₹7,64,300/year, or about ₹63,692/month
Edge Cases and Special Rules
- Income tax isn’t automatically included: This calculation covers EPF and professional tax, not income tax (TDS). Your actual take-home after tax will typically be lower, depending on your tax slab and any exemptions claimed.
- EPF wage ceiling: By law, EPF is calculated on a maximum basic salary of ₹15,000/month, even if actual basic pay is higher — though some employers voluntarily contribute on the full basic salary.
- Professional tax varies by state: It’s levied by state governments, not the center, and both the amount and whether it applies at all differ by state, though it’s capped at ₹2,500 annually nationwide.
- Bonus treatment: Whether a bonus is included in CTC or paid separately changes the gross salary calculation, so check your offer letter’s structure carefully.
Two Different Meanings of “Salary Calculator”
The term covers two different tools depending on context. In India, it usually means converting CTC into take-home pay, as above. In other contexts — particularly hourly or contract work — a salary calculator instead converts pay between frequencies: hourly, weekly, monthly, and annual figures, without touching deductions at all. If you’re paid ₹500/hour for a 40-hour week, that converts to an annual figure very differently than a CTC-based salary structure would. Both are valid uses of the same term, just solving different problems.
Who Uses This
- Job seekers comparing offers quoted in CTC to figure out actual monthly pay
- Employees checking their payslip deductions against an expected take-home figure
- HR and finance teams estimating take-home pay during offer negotiations
- Freelancers or hourly workers converting an hourly rate into an annual equivalent
CTC vs. Gross Salary vs. Net Salary
These three numbers are often confused. CTC is the total cost an employer bears for an employee, including components never paid directly, like employer EPF contributions. Gross salary is CTC minus those employer-only contributions and bonus separations. Net (take-home) salary is gross salary minus all employee-side deductions, including EPF, professional tax, and income tax. The gap between CTC and net salary can be significant, which is why comparing job offers by CTC alone can be misleading.
FAQ
What is CTC?
Cost to Company — the total amount an employer spends on an employee annually, including both direct pay and indirect contributions.
What’s the difference between gross and net salary?
Gross is pay before employee-side deductions; net is what actually reaches your bank account after those deductions.
Does this calculator include income tax?
No — it covers EPF and professional tax; income tax depends on your specific slab and exemptions.
What is EPF, and is it mandatory?
Employee Provident Fund is a retirement savings scheme; contributions are mandatory for most salaried employees in India.
Is professional tax the same in every state?
No — it’s set by individual state governments and varies, though it’s capped at ₹2,500 per year nationally.
Try It Above
Enter your CTC, bonus, and deduction details in the calculator above to get your estimated take-home salary. Figures are for general estimation only — actual take-home pay depends on your specific salary structure, tax slab, and state regulations.