Step 2 · Salary target
What CTC funds your monthly target?
Start with what needs to reach your bank account. We solve annual employer CTC separately for each tax regime.
Enter your target and select Calculate. JavaScript is required; the method and example below are available without it.
Follow the money
CTC includes costs that never enter your bank account. This model starts with basic at 40% of CTC, subtracts employer PF and a gratuity provision of 4.81% of basic, then subtracts employee PF, professional tax and income tax from cash salary. Annual net divided by 12 is monthly take-home. Gratuity is a provision, not an annual cash payout.
A worked example
A ₹50,000 monthly target means ₹6,00,000 annual net. With the default new-regime assumptions, annual CTC is ₹6,58,266. Subtract employer PF ₹21,600, gratuity about ₹12,665, employee PF ₹21,600, professional tax ₹2,400 and income tax ₹0. ₹6,00,001 remains after rupee rounding.
Before negotiating
Ask HR whether PF is capped and how much of the offer is variable or deferred. This tool treats the annual CTC as recurring compensation paid in full. It excludes bonuses, ESOPs and employer NPS. A joining bonus does not fund next year's rent. Old-regime HRA uses your city and rent; no additional 80C, 80D or home-loan deductions are assumed.
Professional tax is paid in both regimes even though the new regime does not deduct it from taxable income. ₹200/month is an editable assumption, not a universal state rate. Enter the amount from your payroll or state schedule.
Rules and scope
The estimator uses the published ordinary-income slabs, standard deductions, resident rebates, surcharge marginal relief and 4% cess. It excludes special-rate gains, non-resident treatment and foreign-income relief. Check the applicable tax period and payroll assumptions before relying on it.
Sources: slab provisions, resident rebates, employee deductions and HRA.
Build your living-cost budget first, or check the take-home from an existing offer. Use Offer Manager to compare packages on this device.