What Is CTC?
CTC (Cost to Company) is the total yearly cost your employer bears for you — including your basic salary, allowances, and the employer's own contribution to your Provident Fund. It's almost always higher than what actually lands in your bank account, since parts of it (like the employer's PF contribution) never reach you as take-home cash.
How This Calculator Works
- Basic Salary is calculated as your chosen percentage of CTC.
- Employer PF Contribution (12% of Basic) is subtracted from CTC to arrive at your Gross Salary.
- Employee PF Contribution (also 12% of Basic) is deducted from Gross Salary — this still belongs to you, just not as immediate cash.
- Professional Tax is deducted monthly (varies by state; many states charge around ₹200/month, some charge none).
- Income Tax is estimated using New Regime slabs for FY 2025-26, after the ₹75,000 standard deduction.
What's left after all of this is your net take-home salary.
Frequently Asked Questions
What is CTC?
CTC is the total amount a company spends on you in a year, including basic salary, allowances and the employer's PF contribution — usually higher than your actual take-home pay.
Why is my take-home salary lower than my CTC?
Your take-home is CTC minus the employer's PF contribution, minus your own PF contribution, minus professional tax, and minus income tax — all of which reduce what actually reaches your bank account.
Does this calculator account for HRA and other allowances separately?
No — it uses a simplified Basic-Salary-percentage model, accurate enough for a quick estimate. For a full breakdown including HRA exemption and old-regime deductions, use our Income Tax Calculator alongside this tool.