SALARY
CALCULATOR
A salary calculator is a useful tool that helps employees and job seekers estimate their take-home pay after deductions. It calculates net salary based on inputs like CTC (Cost to Company), bonuses, EPF, taxes, and other deductions. By adjusting values, users can see how different deductions impact their monthly and annual income. Some calculators also provide daily and hourly salary breakdowns, helping professionals plan their finances better. Visual tools like charts further enhance understanding by displaying salary vs. deductions in an easy-to-read format. Overall, a salary calculator simplifies financial planning and ensures clarity in earnings.
Cost to Company (CTC)
(₹)
Bonus Included in CTC
(₹)
Bonus Included in CTC
(%)
Monthly Professional Tax
(₹)
Monthly Employer PF
(₹)
Annual Health Insurance
(₹)
Monthly Deduction
₹ 8,167
Annual Deduction
₹ 98,004
Hourly Salary
Daily Salary
Monthly Salary
Annual Salary
₹ 140
₹ 1,117
₹ 33,500
₹ 4,02,000
Other Monthly Deductions
(₹)
Tax Deduction at Source (TDS)
(%)
(OPTIONAL)
Income Tax
(%)
Monthly Salary
(After TDS)
₹ 29,333
Annual Salary
(After Tax)
₹ 3,61,800
(OPTIONAL)
How to use Salary Calculator?
Enter Your CTC:
Adjust the slider or manually enter your Annual CTC (Cost to Company).
Select Bonus Type:
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Use the checkbox to select the bonus type:
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Unchecked → Fixed Amount
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Checked → Percentage of CTC
-
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Enter the bonus amount or percentage as applicable.
Enter Deductions:
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Adjust sliders or manually input:
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Employee Provident Fund (EPF)
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Professional Tax
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Health Insurance
-
Other Deductions
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Apply Tax & TDS:
Adjust sliders or manually input:
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TDS (Tax Deducted at Source) Percentage
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Annual Tax Percentage
View Your Salary Breakdown:
The calculator will automatically show:
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Net Monthly Salary (Before & After TDS)
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Net Annual Salary (Before & After Tax)
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Deductions (Monthly & Annual)
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Daily & Hourly Salary
Analyze the Salary Chart:
The interactive chart displays a visual comparison of your take-home salary vs. deductions.
What is a salary calculator, and why should I use one?
A salary calculator is an essential tool that helps individuals estimate their net salary (take-home pay) after deductions. It provides a detailed breakdown of salary components, including CTC (Cost to Company), bonuses, tax deductions, provident fund (EPF), professional tax, health insurance, and other deductions.
Key Benefits of Using a Salary Calculator:
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Understand Your Salary Structure: Helps in analyzing different components of your salary, such as basic salary, allowances, bonuses, and deductions.
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Financial Planning: Assists employees in managing their income better by predicting actual take-home pay and planning expenses accordingly.
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Tax Estimation: Calculates income tax liabilities, enabling better tax-saving strategies.
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Salary Negotiation: Job seekers can use it to compare salary offers and make informed decisions while negotiating their pay package.
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Freelancer & Business Use: Helps freelancers and business owners set realistic service pricing based on net earnings after tax and deductions.
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Comparison of Job Offers: If you're switching jobs, you can compare your current vs. new salary package and evaluate the difference in take-home pay.
A salary calculator is a must-have tool for anyone looking to gain transparency about their earnings and maximize financial efficiency.
How does a salary calculator determine take-home salary?
A salary calculator helps employees estimate their final take-home salary after considering key salary components. While it does not calculate income tax deductions, it accounts for gross salary, allowances, provident fund contributions, professional tax, and other deductions.
Key Steps in Salary Calculation:
Calculate Gross Salary:
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The Gross Salary is the total earnings before deductions.
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Formula:
Gross Salary = Basic Salary + Allowances (HRA, TA, DA, Special Allowance, etc.)
Deduct Employee Contributions:
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Employee Provident Fund (EPF): 12% of Basic Salary (if applicable)
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Professional Tax: A fixed amount deducted (varies by state)
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Health Insurance Premiums: If the employer provides coverage, this amount is deducted from the salary
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Other Deductions: Any additional deductions like voluntary EPF contributions or other company-specific deductions
Final Take-Home Salary Calculation:
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Take-Home Salary = Gross Salary - Total Deductions (EPF, Professional Tax, Insurance, etc.)
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Since income tax is not included, employees may need to manually calculate their taxable income and tax liability.
What is the difference between Gross Salary and Take-Home Salary?
Understanding the difference between Gross Salary and Take-Home Salary is crucial for financial planning.
Gross Salary:
✔ The total earnings before any deductions.
✔ Includes Basic Pay, HRA, Conveyance Allowance, and Bonuses.
✔ Does not consider provident fund, professional tax, or other deductions.
Take-Home Salary:
✔ The final salary received in the bank after deducting EPF, professional tax, and other applicable deductions.
✔ Formula:
Take-Home Salary = Gross Salary - (EPF + Professional Tax + Health Insurance + Other Deductions)
Since tax is not deducted in this calculator, the actual in-hand salary might be lower than the displayed amount if taxes are applicable.
Does this salary calculator include tax deductions?
No, this salary calculator does not include income tax deductions. It only accounts for mandatory deductions like EPF, professional tax, and health insurance.
What This Calculator Includes:
Provident Fund (EPF): A standard deduction for salaried employees.
Professional Tax: A small state-wise deduction.
Health Insurance & Other Deductions: Company-specific reductions.
What This Calculator Does NOT Include:
Income Tax – Not factored in; must be calculated separately.
TDS (Tax Deducted at Source) – Employers usually deduct this based on tax slabs.
Other Tax Benefits – Deductions like HRA, 80C investments, and medical reimbursements are not included.
How to Account for Tax Manually:
To get the post-tax salary, employees should:
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Use government tax slabs to determine tax liability.
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Subtract the calculated tax from the take-home salary shown in this calculator.
Can the calculator be used for freelancers and contract employees?
Yes, while this salary calculator is designed for salaried employees, freelancers and contract workers can use it as a reference.
For Salaried Employees:
✔ Shows monthly salary breakdown with fixed deductions like EPF and professional tax.
✔ Helps in budgeting and financial planning.
For Freelancers & Contract Workers:
✔ Can estimate earnings by entering the projected monthly income as "CTC".
✔ Does not include tax, so freelancers must account for income tax and GST separately.
✔ Since EPF and professional tax may not apply to freelancers, they can enter these values as ₹0.
Tip for Freelancers:
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Freelancers often charge per project or hourly rates, so instead of entering "CTC," they can estimate their monthly income by calculating total expected earnings.
Why is EPF deducted, and how does it affect take-home salary?
The Employee Provident Fund (EPF) is a government-mandated savings scheme where a portion of an employee’s salary is deducted every month and contributed to a retirement fund.
How EPF Works:
✔ 12% of Basic Salary is deducted and deposited into the EPF account.
✔ The employer also contributes 12% of Basic Salary, but this amount is not deducted from salary (it's a company contribution).
✔ The EPF savings earn interest over time, ensuring a financial safety net for retirement.
How EPF Affects Take-Home Salary:
Since EPF is deducted before salary is credited, the actual in-hand salary is lower.
However, the deducted amount is not lost—it is saved for the future and earns tax-free interest.
Example:
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If an employee’s Basic Salary is ₹50,000 per month, then EPF Deduction = ₹6,000 per month (12%).
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This means the take-home salary is ₹6,000 less per month, but the amount accumulates in a retirement fund.
For freelancers and those who opt out of EPF, set EPF to ₹0 in the calculator to get an accurate estimate.
Welcome to our Salary Calculator! Plan your finances effectively with accurate salary breakdowns. Stay informed and plan your salary wisely!