In-Hand Salary Calculator

How this in-hand salary calculator works

Gross salary is what your offer letter promises. In-hand salary is what your bank statement shows. Three statutory deductions bridge the gap: your EPF contribution (12% of basic), professional tax (about ₹2,500 a year in the states that charge it), and income tax deducted at source (TDS). This calculator scales your monthly gross up to a year, works out the year's tax under the new regime, then scales everything back down. So the monthly tax figure is a smoothed estimate of your TDS.

The formula, step by step

Annualise: annual gross = monthly gross × 12; annual EPF = 12% × monthly basic × 12.
Taxable income = annual gross − annual EPF − ₹75,000 standard deduction.
Income tax on the taxable income under the new-regime slabs (0% up to ₹4 lakh, 5% to ₹8 lakh, 10% to ₹12 lakh, 15% to ₹16 lakh, 20% to ₹20 lakh, 25% to ₹24 lakh, 30% above). The Section 87A rebate makes tax zero up to ₹12 lakh income, marginal relief applies just above ₹12 lakh, and 4% health & education cess is added.
Monthly in-hand = (annual gross − annual EPF − ₹2,500 professional tax − income tax) ÷ 12.

Worked example

Take a monthly gross of ₹80,000 with a monthly basic of ₹40,000:

Annual gross = ₹9,60,000; annual EPF = 12% × ₹40,000 × 12 = ₹57,600
Taxable income = ₹9,60,000 − ₹57,600 − ₹75,000 = ₹8,27,400
Slab tax = 5% of ₹4,00,000 + 10% of ₹27,400 = ₹22,740 — fully rebated under 87A, so tax = ₹0
Annual in-hand = ₹9,60,000 − ₹57,600 − ₹2,500 − ₹0 = ₹8,99,900
Monthly in-hand = ₹8,99,900 ÷ 12 = ₹74,992 (monthly EPF ₹4,800, professional tax ≈ ₹208)

India-specific notes

TDS is often front-loaded or smoothed by your employer's payroll. Early months of the financial year can show different deductions from later months as your projected income is reassessed.
The new regime is the default for FY 2025-26 and FY 2026-27. If you claim HRA exemption or 80C deductions, the old regime may work out better — compare both with the income tax calculator.
Many employers deduct EPF on your full basic even above the ₹15,000-a-month statutory wage ceiling, and may add voluntary PF if you opted in.
Bonuses and arrears are usually taxed in the month they're paid, so one month's payslip can look quite different from this average.

Frequently asked questions

What is the difference between gross salary and in-hand salary?

Gross salary is your total monthly pay before any deduction. In-hand (take-home) salary is what you keep after EPF, professional tax and income tax (TDS) — roughly 80–90% of gross for most salaried employees in India.

How much of my salary goes to EPF?

12% of your monthly basic salary goes to EPF as your share, and your employer adds another 12% (part of it goes into the pension scheme, EPS). The calculator deducts only your 12% share from take-home pay.

Does this calculator include income tax?

Yes. It annualises your monthly gross, subtracts EPF and the ₹75,000 standard deduction, then computes new-regime income tax for FY 2025-26/FY 2026-27 — including the Section 87A rebate up to ₹12 lakh income, marginal relief and 4% cess — and spreads the result back over 12 months.

Why doesn't my actual payslip match this calculation?

Your employer may deduct extras the estimate can't know: voluntary PF, insurance premiums, meal or transport recoveries, professional tax at your state's exact rate, or TDS worked out on projected annual income including bonuses. Treat the result as a close estimate, not the exact payslip figure.

Can I use this to compare job offers?

Yes — enter each offer's monthly gross and basic to compare take-home pay side by side. Compare the fixed monthly gross rather than CTC, because a big variable-pay component can make a CTC look larger than what it actually pays.