CTC to In-hand Salary & Offer Decoder
12 LPA in-hand salary per month (2026-27)
With taxable income up to ₹12 lakh tax-free in the new regime, a 12 LPA CTC can mean zero income tax - but PF, gratuity and variable pay still decide what you get monthly. Check your exact structure.
First result free. per result, 2 revisions included.
Educational estimates for FY 2026-27, not tax, legal or financial advice. Your employer's payroll, your declarations and current rules decide actual TDS and deductions. For RSUs from a foreign parent, NRI status, multiple employers in a year or complex cases, consult a chartered accountant.
Free CTC to in-hand calculator (FY 2026-27)
Runs in your browser - nothing is sent anywhere. Change the structure to match your offer letter.
= ₹20,00,000 (20.00 LPA)
Target performance bonus, joining bonus etc.
Often 40-50%; 50% is common after the labour codes
EPF wage ceiling is ₹25,000/month from 17 Sep 2026 (was ₹15,000)
Professional tax ₹2,500/yr · HRA limit 50% of basic
Up to 14% is tax-free in the new regime, 10% in the old
Old regime details: rent, 80C, 80D, home loan
80C limit ₹1.5 lakh including your PF
Up to ₹2 lakh
| Per year unless noted | New regime | Old regime |
|---|---|---|
| Fixed salary (basic + HRA + allowances) | ₹19,15,900 | ₹19,15,900 |
| HRA exemption | Not allowed | ₹0 |
| Taxable income | ₹18,40,900 | ₹18,27,400 |
| Income tax incl. cess | ₹1,74,907 | ₹3,75,149 |
| Monthly in-hand (fixed pay) | ₹1,41,874 | ₹1,25,188 |
| Total cash in year (if variable paid in full) | ₹17,02,488 | ₹15,02,256 |
New regime is better by ₹2,00,242 a year (₹16,687 a month). Monthly in-hand: ₹1,41,874, i.e. 85% of CTC reaches your account as monthly salary.
Where your CTC goes (new regime)
- Monthly in-hand (×12)₹17,02,488 · 85%
- Income tax₹1,74,907 · 9%
- Your PF (to your PF account)₹36,000 · 2%
- Employer PF₹36,000 · 2%
- Gratuity (paid on exit after 5 yrs)₹48,100 · 2%
- Professional tax₹2,500 · 0%
What CTC do I need for a target in-hand?
You need a CTC of about ₹21,27,000 (21.3 LPA) with the same structure, city and deductions as above.
FY 2026-27 rules: new regime slabs 0-4L nil, 5% to 8L, 10% to 12L, 15% to 16L, 20% to 20L, 25% to 24L, 30% above; ₹75,000 standard deduction; no tax up to ₹12 lakh taxable income (with marginal relief); old regime ₹50,000 standard deduction; surcharge above ₹50 lakh with marginal relief; 4% cess. Tax on fixed pay is spread over 12 months; variable is taxed at your marginal rate. Estimates only - your payroll may spread TDS differently.
What's inside a typical Indian CTC
Two offers with the same CTC can pay very different monthly salaries. This is why.
| Component | When you get it | Watch out |
|---|---|---|
| Basic, HRA, special allowance | Monthly cash | Taxed; basic decides your PF and gratuity |
| Flexi benefits / meal cards / LTA | Monthly or on bills | Some are tax-free only in the old regime - check with HR |
| Employer PF (12%) | Never in hand | Goes to your PF account; withdrawable later |
| Gratuity (≈4.81% of basic) | Never in hand | Paid only when you leave after 5 years (1 year for fixed-term) |
| Group health / term insurance | Never in hand | Useful cover, but not cash; some offers keep it outside CTC |
| Performance bonus / variable | Once a year, conditional | Depends on rating and company results; ask the average payout |
| Joining / relocation bonus | Once, first months | Often repayable if you leave within 12 months |
| Retention bonus | Once, after a period | Paid only if you stay; not part of year-1 cash if paid at 12 months |
| ESOPs / RSUs | Not cash | Vesting, cliff and liquidity decide real value; don't compare as salary |
8 questions to ask HR before you accept
- Is PF on my full basic or capped at the ₹25,000 wage ceiling? Can I choose?
- Is the variable paid at 100% of target, how often, and what was the average payout last cycle?
- Is the joining bonus clawback full or pro-rata, and over how many months?
- Are insurance premiums and gratuity included in the CTC figure?
- Will the structure change for the labour codes (basic at 50% of pay)? If so, what is the new monthly in-hand?
- Which flexi-benefit components can I claim under the new tax regime?
- ESOPs: strike price, vesting schedule, cliff, and has the company ever run a buyback?
- Is there a notice-period buyout, and will you reimburse it?
Paste your offer into Ctcsamjho above to get these answered for your letter, a comparison with a second offer, and a counter-offer email.
See a real result
A real result from the example below, made with this tool. Shortened.
Input: What do you need?: Compare two offers · Offer letter / CTC breakup: Company A (product startup, Bengaluru) - CTC ₹28,00,000 Basic ₹11,20,000 · HRA ₹5,60,000 · · Second offer (to compare): Company B (bank GCC, Bengaluru) - CTC ₹25,50,000 Basic ₹12,75,000 · HRA ₹5,10,000 · Flexi · Current salary (optional - for hike % and negotiation): Current CTC ₹19 LPA, in-hand about ₹1,24,000/month, annual bonu
Offer Comparison: Company A (Startup) vs Company B (Bank GCC), Bengaluru
1. Verdict
- Company A pays more cash. At target bonus it pays about ₹17,600/month more in-hand and about ₹4.35 lakh more in year 1. Even with no bonus at all, A pays about ₹3.49 lakh more in year 1.
- Company B could still be the better choice. It puts about ₹19,500/month more into your PF (₹25,500 vs ₹6,000 across both sides). Counting PF, B builds slightly more wealth each month (₹1,72,442 vs ₹1,70,523). B also has no clawback on joining money and comes with bank-level stability.
- Pick B if you value PF savings and stability, or if you are unsure you will stay 12 months at A. A's ₹2L joining bonus is repayable in full if you leave early, and A's ESOPs are not cash.
2. Side-by-side
| Item | Company A | Company B |
|---|---|---|
| Headline CTC | ₹28,00,000 | ₹25,50,000 |
| Fixed cash pay (gross) | ₹22,72,000 (81% of CTC) | ₹21,45,000 (84% of CTC) |
| Variable (target) | ₹2,20,000, rating-based | ₹1,02,000 |
| Guaranteed year-1 cash (in-hand, no bonus) | ₹21,11,876 + joining ₹1,37,600 net | ₹17,63,304 |
| Monthly in-hand (new regime) | ₹1,64,523 | ₹1,46,942 |
| Total PF per month (employee + employer) | ₹6,000 | ₹25,500 |
| Never-in-hand items | Employer PF ₹36,000, Gratuity ₹53,872, Insurance ₹18,128 | Employer PF ₹1,53,000 (gratuity and insurance not listed; ask) |
| Joining / retention bonus | ₹2,00,000 joining, 100% clawback within 12 months | ₹1,50,000 retention, paid after month 12 (≈ ₹1,11,000 net) |
| ESOP / RSU | 4,000 options, 4-year vesting, 1-year cliff. Not valued as cash. | None |
| Notice period | 60 days | 90 days |
| Recurring CTC hike over ₹19L (excl. one-time bonuses) | ₹26L → +36.8% | ₹24L → +26.3% |
| In-hand hike over ₹1,24,000 | +₹40,523 (+32.7%) | +₹22,942 (+18.5%) |
How A's ₹28L headline is built: fixed cash ₹22.72L + PF ₹0.36L + gratuity ₹0.54L + insurance ₹0.18L = ₹23.8L. Add the bonus (₹2.2L) and the one-time joining bonus (₹2L) to reach ₹28L. Only ₹26L of that recurs.
How B's ₹25.5L headline is built: ₹21.45L cash + ₹1.53L PF + ₹1.02L bonus + ₹1.5L one-time retention.
3. Monthly in-hand, both regimes
Company A
PF is assumed capped at the ₹25,000 wage ceiling, which gives ₹3,000/month on each side. This matches the ₹36,000 shown in the letter.
| Monthly | New regime | Old regime |
|---|---|---|
| Gross | ₹1,89,333 | ₹1,89,333 |
| Employee PF | −₹3,000 | −₹3,000 |
| Professional tax | −₹208 | −₹208 |
| Income tax (TDS) | −₹21,602 | −₹29,757 |
| In-hand | ₹1,64,523 | ₹1,56,368 |
- Result: the new regime wins by ₹97,864/year.
- Break-even: the old regime only wins with about ₹3.14 lakh more in deductions, such as home-loan interest. Your 80C still has only ₹74,000 of room left.
- Old-regime working (taxable ₹17,69,500):
- HRA exemption ₹3,44,000 (least of: rent − 10% of basic, versus 50% of basic)
- Standard deduction ₹50,000
- Professional tax ₹2,500
- 80C ₹76,000 (PF ₹36,000 + ELSS ₹40,000)
- 80D ₹30,000
- New-regime working: taxable ₹21,97,000, tax ₹2,59,220 including cess.
Company B
| Monthly | New regime | Old regime |
|---|---|---|
| Gross | ₹1,78,750 | ₹1,78,750 |
| Employee PF (12% of full basic) | −₹12,750 | −₹12,750 |
| Professional tax | −₹208 | −₹208 |
| Income tax (TDS) | −₹18,850 | −₹24,934 |
| In-hand | ₹1,46,942 | ₹1,40,858 |
- Result: the new regime wins by ₹73,008/year.
- Break-even: the old regime needs about ₹2.34 lakh more in deductions.
- Your ELSS is wasted at B. PF alone (₹1,53,000) already fills the ₹1.5L 80C limit.
- Old-regime working (taxable ₹15,84,000):
- HRA exemption ₹3,28,500
- Standard deduction ₹50,000
- Professional tax ₹2,500
- 80C ₹1,50,000
- 80D ₹30,000
- New-regime working: taxable ₹20,70,000, tax ₹2,26,200 including cess.
Choose the new regime with either company. Note that section labels (80C, 80D, etc.) are renumbered under the Income-tax Act 2025. The familiar names are used here.
Year-1 cash (new regime, bonus at 100% target and paid within year 1)
| Company A | Company B | |
|---|---|---|
| 12 normal months | ₹19,74,276 | ₹17,63,304 |
| Joining bonus, net (taxed ≈ 31.2%) | ₹1,37,600 | n/a |
| Performance bonus, net | ₹1,61,916 | ₹75,480 |
| Retention bonus | n/a | ₹1,11,000 net, but arrives in month 13 |
| Year-1 total | ₹22,73,792 | ₹18,38,784 |
Watch A's clawback. If you leave A before 12 months, you likely repay the gross ₹2,00,000, but you only received about ₹1,37,600 after tax. That is a real loss of roughly ₹62,000 in tax, unless TDS is reversed.
Your lost April bonus
You give up ₹1,50,000 gross from your current employer.
- A's ₹2L joining bonus covers it, but carries the clawback.
- B offers nothing until month 13.
4. What to negotiate
With Company B (to close the gap)
- Fixed pay: ask for +₹2,85,000/year in special allowance, taking fixed cash to about ₹24.3L. That adds roughly ₹17,600/month in-hand and matches A's monthly cash.
- A softer fallback is +₹1,50,000 in fixed pay.
- Joining bonus: ask for a ₹1,50,000 joining bonus to replace your lost April bonus. Alternatively, ask them to pay the retention bonus at joining instead of after 12 months.
With Company A
- Clawback: ask for the ₹2L joining bonus clawback to be pro-rata, i.e. ₹16,667 waived per month served.
- ESOP terms: ask for the strike price, the current fair market value, total shares outstanding, and the post-exit exercise window.
- Deadline: ask to extend the 3-day deadline to 7 days so you can close B. This is a normal request, and the startup's urgency gives you some leverage.
- Bonus guarantee: if A is firm on fixed pay, ask for year-1 bonus guaranteed at 100% target, since a rating-based bonus in your joining year is uncertain.
Labour-code check for A
- Basic is 49.3% of fixed pay, just under 50%.
- About ₹16,000/year may be added back as "wages" for PF and gratuity. The impact is small, roughly a few hundred rupees a month, but confirm it.
- B is fine: basic is 59% of fixed pay.
5. Questions to ask each HR
Company A
- "Is the ₹2,00,000 joining bonus clawback pro-rata, and is it the gross or the net amount that is recovered?"
- "Is the performance bonus 10% of fixed pay, is it prorated in the joining year, and what was the average payout percentage last cycle?"
- "For the ESOPs: what is the strike price, the latest FMV, the total fully diluted shares, and the exercise window after leaving?"
- "Is employee PF capped at the ₹25,000 wage ceiling, and will it be recalculated under the labour-code 50% wage rule?"
- "Does the ₹18,128 group health insurance cover parents or dependants, and can I top up?"
- "Can I have until [date, 7 days] to confirm?"
Company B
- "Gratuity isn't shown in the CTC. Is it paid outside the CTC? Is group health insurance included, and who does it cover?"
- "What can the ₹2,40,000 flexi benefits be claimed as? Is any of it tax-free under the new regime, or is it all taxable?"
- "Is the annual bonus paid at 100% of target in the first year, and when is it paid?"
- "Is the ₹1,50,000 retention bonus guaranteed after 12 months, and is there a clawback after payout?"
- "Can you offer a joining bonus to offset the ₹1,50,000 bonus I forfeit by resigning before April?"
6. Assumptions
- Taxable cash: all fixed allowances are fully taxable cash. B's flexi benefits are treated as taxable [assumed].
- Professional tax (Bengaluru): ₹2,500/year.
- A's PF: capped at ₹3,000/month each side, consistent with the letter's ₹36,000.
- Parents' 80D: ₹30,000 deductible, assuming at least one parent is a senior citizen [assumed]. If neither is, only ₹25,000 is allowed. This affects only the old regime, which loses either way.
- Monthly TDS: computed on fixed pay only. Bonuses are taxed at the marginal rate in the month they are paid.
- Bonus timing: both bonuses are assumed paid at 100% of target within year 1, which is not guaranteed.
- Not counted: ESOPs, gratuity and employer PF are excluded from all cash figures.
These are estimates; the employer's payroll and actual declarations decide final TDS. If A's ESOPs become significant, a CA can help with exercise-time tax planning.
Who it's for
- I have an offer in hand and need to know the real monthly salary before I resign
- I have two offers and the one with the bigger CTC might actually pay less
- My hike letter changed basic and PF after the new labour codes and my take-home dropped
- I want to negotiate but don't know which part of the CTC to push on
- I'm a fresher and the campus offer has a joining bonus, relocation and a retention bonus
Why people use Ctcsamjho
Your offer says ₹24 LPA. Your bank account will see something much smaller every month, because CTC also counts employer PF, gratuity you only get after years, insurance premiums, variable pay that depends on ratings, and a joining bonus you may have to return. Every online calculator assumes its own salary structure, so the same CTC gives five different answers, and none of them reads your actual offer letter. Ctcsamjho starts from your letter. The free calculator below uses FY 2026-27 rules (new slabs, 8-city HRA rule, the ₹25,000 EPF ceiling from September 2026, labour codes). Paste your offer and you get month-by-month cash, what is padding, the questions to ask HR before you sign, a true comparison of two offers and a negotiation plan.
- ✓ Free calculator: monthly in-hand under the new and old regime with your own basic %, PF method, city, rent and investments - no fixed 40%-basic guess
- ✓ Reads your actual offer letter table: every line classified as monthly cash, once-a-year cash, conditional, or never-in-hand (employer PF, gratuity, insurance)
- ✓ Real cash flow: first month, a normal month, the bonus month and year-1 total, with tax spread the way payroll does it
- ✓ Compare two offers on fixed cash, guaranteed year-1 cash and long-term value - not on headline CTC
- ✓ Red flags with the exact question to ask HR: variable payout conditions, joining bonus clawback, ESOP cliff, notice period, gratuity and insurance inside CTC
- ✓ Negotiation plan with a counter-offer email, plus a live role-play of the HR call that scores each reply
- ✓ Up to date for FY 2026-27: ₹12 lakh zero-tax limit, ₹75,000 standard deduction, 50% HRA now for Bengaluru, Pune, Hyderabad and Ahmedabad, EPF ceiling ₹25,000
How it works
- 1Fill in a few details (or click 'Fill with an example').
- 2Click Generate - your result appears in seconds.
- 3Copy it, print it or save as PDF. Edit anything you like.
Ctcsamjho vs the alternatives
| Ctcsamjho | Free CTC calculators | ChatGPT | CA / tax consultant | |
|---|---|---|---|---|
| Uses your own salary structure | Yes - reads your offer letter, adjustable basic %, PF, city | Fixed assumptions (e.g. basic 40%) | If you explain it | Yes |
| FY 2026-27 rules (8-city HRA, ₹25,000 EPF ceiling, labour codes) | Yes | Varies | Often outdated | Yes |
| Monthly, bonus-month and year-1 cash | Yes | Monthly only | Not structured | On request |
| Compare two offers side by side | Yes | No | Not structured | On request |
| Red flags and questions for HR | Yes | No | Generic | Rarely |
| Negotiation plan + HR call practice | Yes | No | Generic advice | No |
| Price | Calculator free; ₹99 / $2 per offer analysis | Free | Free / subscription | Usually a fee per consultation |
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Frequently asked questions
How is CTC different from in-hand salary?
CTC (cost to company) is everything the employer spends on you in a year. In-hand is what reaches your bank each month. The gap comes from employer PF (goes to your PF account), gratuity (paid only when you leave after 5 years), insurance premiums, variable pay (paid later and only if targets are met), and deductions from your salary: your own PF, professional tax and income tax. For most offers, monthly in-hand is roughly 65-80% of CTC divided by 12, but the exact share depends on the structure, which is why the calculator lets you set it.
How much in-hand will I get for 12, 20 or 30 LPA in 2026-27?
It depends on how much is variable, basic %, and PF method, but with basic at 50%, PF capped at the ₹25,000 wage ceiling, gratuity inside CTC, no variable pay and Bengaluru professional tax, the new regime gives about ₹91,400 a month on 12 LPA (no income tax, because taxable income stays under ₹12 lakh), about ₹1.42 lakh on 20 LPA and about ₹2.01 lakh on 30 LPA. Use the free calculator on this page with your own numbers rather than relying on any single table.
New or old tax regime - which is better for my salary?
From FY 2025-26 onwards the new regime wins for most salaried people: taxable income up to ₹12 lakh pays no tax, and the standard deduction is ₹75,000. The old regime wins mainly when you pay high rent in a big city and also have large deductions (full ₹1.5 lakh 80C, health insurance, home loan interest). The calculator shows both side by side and which one saves more.
Is HRA now 50% for Bengaluru, Pune and Hyderabad?
Yes, from 1 April 2026 the Income-tax Rules, 2026 extend the 50%-of-basic HRA limit to Bengaluru, Hyderabad, Pune and Ahmedabad, in addition to Mumbai, Delhi, Kolkata and Chennai. All other cities stay at 40%. This only matters in the old tax regime; the new regime gives no HRA exemption.
Why did my take-home drop after the new labour codes?
The labour codes (in force from 21 November 2025) count allowances above 50% of total pay as 'wages' for PF and gratuity. Many employers raised basic pay to about half of CTC, which raises your PF deduction and the gratuity provision, so monthly in-hand can fall at the same CTC. Separately, the EPF wage ceiling rose from ₹15,000 to ₹25,000 a month from 17 September 2026, so a capped PF deduction is now up to ₹3,000 a month instead of ₹1,800. The money isn't lost - it goes to your PF and gratuity - but it isn't monthly cash.
Is employer PF and gratuity part of my salary?
They are part of CTC but not of your monthly cash. Employer PF goes to your PF account (you get it on withdrawal or retirement). Gratuity, usually 4.81% of basic in the CTC, is paid only when you leave after 5 years of continuous service (1 year for fixed-term contracts). If an offer counts both in CTC, its headline number looks bigger than an offer that doesn't.
How do I compare two job offers properly?
Compare guaranteed cash first: fixed pay minus your PF, professional tax and income tax, plus bonuses that are guaranteed. Then add conditional items (variable, retention bonus) at a realistic payout, then long-term items (PF, gratuity, ESOPs). Choose 'Compare two offers' and paste both breakups: you get a side-by-side table, monthly in-hand for each, and what to negotiate to close the gap.
Is my offer letter data safe?
The free calculator runs entirely in your browser - nothing you type there is sent anywhere. For the AI analysis, your text is sent to the AI model to produce the result. You can remove your name and company name before pasting; only the numbers matter.
How accurate is it?
The calculator applies the FY 2026-27 slabs, rebate with marginal relief, surcharge, cess, HRA and PF rules exactly, so it is as accurate as the inputs. Your actual payslip can differ because of how your employer spreads TDS, your declarations, flexi-benefit bills you submit, and mid-year joining. Treat it as a careful estimate and confirm details with HR.
What does it cost?
The calculator is free and unlimited. You get 1 free AI offer analysis a day. After that, ₹99 / $2 buys one analysis (decode, compare or negotiation plan), each with 2 follow-up refinements. No subscription.