Tax year: FY 2026-27 · Last updated: 3 Nov 2026
Short answer
A ₹10 lakh CTC is about ₹79,930 a month gross and ₹77,922 a month in hand under the new regime.
What is inside a CTC
A CTC package has two kinds of money. Some of it is paid to you every month as gross salary: basic pay, house rent allowance (HRA) and a special allowance. The rest is paid on your behalf or later, such as the employer's PF contribution, gratuity, insurance and variable pay. The conversion from CTC to in-hand salary starts by taking the second group out.
The CTC to in-hand formula
- Gross salary = CTC − employer PF − gratuity − other employer contributions.
- Basic = basic % × the fixed part of CTC. The default is 40%.
- HRA = 50% of basic in metros or 40% elsewhere.
- Special allowance = gross salary − basic − HRA − variable pay. It is the balancing figure.
- In-hand salary = gross salary − employee PF − professional tax − income tax.
Example: ₹10 lakh CTC
- ₹79,930
- Gross a month
- ₹0
- Tax + cess a month (new)
- ₹77,922
- In-hand a month (new)
| Item | Monthly | Yearly |
|---|---|---|
| Basic (40% of CTC) | ₹33,333 | ₹4,00,000 |
| HRA (50% of basic, metro) | ₹16,667 | ₹2,00,000 |
| Special allowance | ₹29,930 | ₹3,59,160 |
| Gross salary | ₹79,930 | ₹9,59,160 |
| Employee PF | ₹1,800 | ₹21,600 |
| Professional tax (Maharashtra) | ₹208 | ₹2,500 |
| Income tax + cess, new regime | ₹0 | ₹0 |
| In-hand, new regime | ₹77,922 | ₹9,35,060 |
| Income tax + cess, old regime (no deductions) | ₹7,758 | ₹93,092 |
| In-hand, old regime (no deductions) | ₹70,164 | ₹8,41,968 |
The special allowance is usually the largest part of a gross salary after basic. Because it is a balancing figure, companies adjust it freely, which is why two offers with the same CTC can have different monthly pay.
Questions to ask about an offer
- How much of the CTC is fixed and how much is variable, and how is variable pay paid out?
- Is PF calculated on the full basic or on the ₹15,000 wage ceiling?
- Is gratuity, insurance or a joining bonus included in the CTC figure?
- Which tax regime will payroll apply by default?
Then compare offers with the same assumptions. Our guides on what is CTC and the salary negotiation guide go deeper.
Frequently asked questions
What is CTC?
CTC, or cost to company, is the total amount a company spends on you in a year. It includes your gross salary and employer contributions such as PF and gratuity, and sometimes insurance, bonuses and allowances.
How much less than CTC is my in-hand salary?
For a typical fixed-pay package, in-hand salary is roughly 75% to 90% of CTC, depending on income tax. Higher CTCs lose more to tax. Packages with a large variable component or PF on full basic pay can be lower.
Is gratuity part of in-hand salary?
No. Gratuity is paid when you leave the company after at least five years of service. Many offer letters include it in CTC anyway, which is why this calculator lets you switch it off.
Is variable pay included in CTC?
Usually yes. Enter your variable pay under More options and the calculator keeps it inside CTC, calculates basic on the fixed part only and spreads the variable amount over 12 months.
What if my offer letter shows gross salary, not CTC?
Switch the toggle to Gross salary. The calculator then adds employer PF and gratuity on top to show your CTC.
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Calculators
Estimates only. This calculator is not tax advice, and your employer's payslip is the final word. Read the full disclaimer.