Practical guide
Calculate take-home pay from CTC with explicit deductions
See how this CTC calculator separates employer costs, FY 2026–27 income tax under both regimes, employee PF, payroll deductions, and monthly take-home pay.
By StackCalcs · Updated · Sources checked
Start with the CTC breakdown
CTC is not automatically cash paid to you. The CTC to Take-home Calculator subtracts employer-only costs (employer PF, gratuity, insurance) to get gross salary, then deducts income tax, employee PF, and professional tax or other payroll deductions. Do not enter the same PF or insurance amount in two fields.
Worked example (FY 2026–27, new regime)
₹18,00,000 CTC minus ₹1,20,000 employer-only costs leaves ₹16,80,000 gross. With basic at 40% of gross, employee PF at 12% of basic capped at the ₹15,000 monthly wage ceiling is ₹21,600. New-regime taxable income is ₹16,05,000 after the ₹75,000 standard deduction; slab tax is ₹1,21,000 and 4% cess brings it to ₹1,25,840. After ₹2,400 professional tax, annual take-home is ₹15,30,160, or ₹1,27,513 a month.
Under the old regime with ₹1,50,000 of deductions, taxable income is ₹14,77,600 and tax is about ₹2,66,011, so the new regime is cheaper by ₹1,40,171. The calculator also solves for the old-regime deduction total at which the two regimes cost the same — about ₹5,99,265 here — so you can see whether HRA, 80C, and 80D claims could realistically change the answer.
What the tax estimate covers
Budget 2026 left FY 2026–27 slabs unchanged. The estimate applies resident-individual (under 60) slabs, the Section 87A rebate (₹60,000 up to ₹12 lakh taxable in the new regime, with marginal relief just above it; ₹12,500 up to ₹5 lakh in the old regime), surcharge with marginal relief above ₹50 lakh, ₹1 crore, ₹2 crore, and ₹5 crore, and 4% cess. Special-rate income, perquisites, employer NPS deductions, and senior-citizen slabs are excluded; you can switch to a manual tax figure instead.
Variable bonus, reimbursements, joining payments, unpaid leave, and payroll timing are outside this annual model.
FAQ
Why does my payslip not equal CTC divided by 12?
Employer costs, employee PF, tax deducted at source, and professional tax are excluded from cash paid, and variable components may not be paid every month.
Does the calculator compute Indian income tax?
Yes. It estimates FY 2026–27 tax under both regimes and shows a side-by-side comparison. You can also enter your own annual tax figure.