Salary Calculator

How the Salary Calculator Works

The Salary Calculator helps you estimate your in-hand salary by breaking down your total Cost to Company (CTC) into monthly components and applying standard deductions such as Provident Fund (PF), Professional Tax, and any additional deductions. It’s designed to help you understand how much you actually receive every month and annually after all mandatory contributions.

Input Fields Explained

Cost to Company (CTC): The total annual compensation offered by your employer, including basic pay, bonuses, employer PF, gratuity, and other benefits. This is the gross value before any deductions.
Bonus Included in CTC (%): The percentage of your CTC that is paid as an annual bonus. Example: If your CTC is ₹12,00,000 and 10% is bonus, your fixed salary is ₹10,80,000 and bonus is ₹1,20,000.
Monthly Professional Tax: A small tax levied by some Indian states (like Maharashtra, Karnataka, etc.) on salaried individuals. Usually ranges between ₹150–₹200 per month, depending on income slab and state.
Monthly Employer PF Contribution: The employer’s contribution to your Provident Fund. This is not deducted from your take-home pay, but it’s part of your overall CTC. Typically, 12% of your basic salary.
Monthly Employee PF Contribution: The amount deducted from your salary towards PF. Usually 12% of your basic salary. This amount goes into your EPF account and earns interest.
Monthly Additional Deduction (Optional): Any extra deduction apart from PF and tax, such as insurance premium, food coupons, or other voluntary contributions.

Calculation Formula

1. Annual Fixed Pay = CTC × (1 − Bonus%)

2. Monthly Gross Salary = Annual Fixed Pay ÷ 12

3. Monthly Deductions = Employee PF + Professional Tax + Additional Deduction

4. Monthly Take-Home = Monthly Gross Salary − Monthly Deductions

5. Annual Take-Home = Monthly Take-Home × 12

6. Total Deductions (Annual) = Monthly Deductions × 12

Example Calculation

Let’s take a practical example:

CTC: ₹12,00,000 per year
Bonus: 10% (₹1,20,000)
Employer PF: ₹2,160 per month
Employee PF: ₹2,160 per month
Professional Tax: ₹200 per month
Additional Deduction: ₹500 per month

Your fixed annual pay (after removing the 10% bonus) is ₹10,80,000. That means your monthly gross salary is ₹90,000.

Monthly deductions = ₹2,160 (Employee PF) + ₹200 (Professional Tax) + ₹500 (Other Deductions) = ₹2,860.

Therefore, your take-home salary = ₹90,000 − ₹2,860 = ₹87,140 per month.

On an annual basis, you’ll take home ₹87,140 × 12 = ₹10,45,680, while your total annual deductions are ₹2,860 × 12 = ₹34,320.

Why Use This Calculator?

✔️ To estimate your actual in-hand salary before accepting a job offer.
✔️ To plan monthly budgets and savings more accurately.
✔️ To understand how PF and other deductions affect your take-home pay.
✔️ To evaluate multiple offers by comparing net salaries, not just CTC.
✔️ To plan investment and tax-saving strategies better.

Remember, actual salary components can vary based on your company’s policies, bonus structure, tax regime (old or new), and benefits like HRA, LTA, and gratuity. This calculator provides an estimate for quick financial planning.