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Gross Pay and Take Home Salary Calculator 2023-24

Take Home Salary (Monthly)


Take Home Salary (Annual)


Income Tax

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Take-Home Salary Calculator

We all work for various reasons – passion, exploration, or necessity. But money is a common motivator. In the professional realm, that awaited payday arrives when salaries are credited.

Understanding your take-home pay’s actual value is crucial in today’s fast-paced work world. Employers recognize contributions through a fixed amount known as salary, mentioned in contracts and payslips, comprising various components that differ among employers. Salary affects annual income, taxed accordingly, meaning the pay you receive might vary from your employer’s stated amount. Stay informed with our take-home salary calculator.

In a professional setup, month-end brings predetermined compensation – salary. It’s in the contract and payslip, including diverse components per employer. It’s a part of your annual income, subject to taxes, which affects the actual amount you pocket

Here, we will discuss take-home salary and how Fisdom’s salary calculator aids employees in accurately estimating their expected net pay.

What is salary and what are its components?

Here are some of the common components of salary that an employee should know about:

Basic salary
It forms part of the Cost to Company (CTC) paid by the employers to the employees towards services rendered by employees. It is usually around 40% to 50% of the employee’s total salary depending on the industry standards, employee designation, etc.

Special allowance
This is a fixed component paid on top of the basic salary and varies across companies.

Bonus forms part of an employee’s gross salary and is offered as a reward for employee performance.

House rent allowance (HRA)
This is paid to employees who live in a rented home. It is generally estimated as 50% of the basic salary for those living in metro cities. For employees residing in non-metro cities, the amount is estimated as 40% of basic salary. As per Section 10(13A) of the Income Tax Act, the HRA is partially or fully tax-exempt. For those who do not stay in a rented home, the HRA will be fully taxed.

Leave travel allowance (LTA)
This component is paid to cover the employee’s and his/her family’s domestic travel expenses for a holiday. This allowance specifically covers train ticket expenses and airfares. As per the Income-tax Act, tax exemption can be availed on the LTA amount for a maximum of 2 holidays in 4 calendar years.

Employee Provident Fund (EPF)
This is a mandatory savings scheme that must be provided by organisations of a certain size. It is estimated as 12% of an employee’s basic salary and is deposited in the EPF account. The employer makes an equal contribution to the employee’s EPF account. The employee’s contribution is tax-deductible for a maximum of Rs. 1.5 lakhs per year. The employer’s contribution is considered as part of CTC and is not reflected on the salary slip.

Professional tax
This is the tax that every employee earning a certain salary amount must pay to the state government. This amount cannot exceed Rs. 2,500 in a financial year.

What is a salary calculator?

Calculation of salary can be trickier since it involves several aspects. Therefore, to save an employee’s time and efforts, Fisdom has designed an online take-home salary calculator.

Calculation of salary can be trickier since it involves several aspects. Therefore, to save an employee’s time and efforts, Fisdom has designed an online take-home salary calculator.

Fisdom’s take-home salary calculator is an automated online tool that helps an employee estimate his/her net salary post-tax. It takes into account all the salary components and tax deductions applicable.

How do salary calculators work?

Fisdom’s take-home salary calculator is simple and quick to use. Here are the steps to be followed to use the same:

  1. Choose the preferred tax regime – old or new
  2. Select whether living in a metro or non-metro city
  3. Enter the total Cost to Company (CTC)
  4. Input the basic salary
  5. Enter rent paid per month
  6. Enter the HRA offered by the employer per month
  7. Provide the amount of investments made under Section 80C
  8. Enter amount paid towards medical insurance premium
  9. Provide the EPF per month – employer and employee
    contribution to be entered separately

Once the required details are entered, the calculator will instantly provide the following results on the right-hand side:

  1. Tax breakup displayed in the form of a pie-chart
  2. Take-home salary (monthly)
  3. Take-home salary (annual)
  4. Income tax

The take-home salary of an employee is the net amount that remains after considering deductions from gross salary. Here is an example to learn about the calculations for arriving at take-home salary.

Suppose an employee’s income and expenses are as below:
Annual CTC = Rs. 10 lakhs
Basic salary = Rs. 30,000 per month
Rent paid = Rs. 30,000 per month
HRA = Rs. 15,000 per month
Investments towards Section 80C = Rs. 1.5 lakhs
Medical insurance premium = Rs. 2,000 per month
EPF = Rs. 1,800 each of employee and employer contribution per month
Annual income tax = approximately Rs. 28,475 as per old tax regime
Annual income tax = approximately Rs. 78,000 as per new tax regime

  1. The net annual take-home salary as per old tax regime will therefore be:
    = CTC – tax – EPF contribution
    = 10L – 28,475 – 21,600
    = Rs. 9,49,924
  2. The net annual take-home salary as per new tax regime will therefore be:
    = CTC – tax – EPF contribution
    = 10L – 78,000 – 21,600
    = Rs. 9,22,000

Fisdom’s take-home salary calculator also provides the monthly take-home salary amount along with annual. This makes it easier for an employee to know the amount he/she would have at his/her disposal every month.

What is the difference between CTC and Take Home Salary?

CTC refers to the total amount a company spends on an employee, including their salary, allowances, benefits, and contributions towards provident fund, insurance, etc. Take-home salary, on the other hand, is the actual amount an employee receives in their bank account after deductions like taxes, provident fund contributions, and other deductions are made from their CTC. In essence, CTC is the total package offered by the company, while take-home salary is the actual money an employee receives.

Benefits of salary calculator in India

Some of the top benefits of using a salary calculator are:

  1. Easy detection of changes: The calculator helps employees understand changes in salary structure with bonuses or deductions.
  2. Quick calculation: Groww’s salary calculator can quickly determine the take-home salary.
  3. Considers costs: The calculator helps estimate monthly/annual deductions and employer/employee EPF contributions.
  4. Clear breakdown: The calculator clearly shows all components of an employee’s salary and its deductions.

How to increase your income?

Some of the ways in which you can try and increase your income or salary are:

  1. Education: The level of education significantly influences your lifetime earnings. Expanding expertise in a niche field can escalate your salary potential. This could involve staying updated through conferences or dedicating leisure time to learning.
  2. Experience: Longevity in an industry often translates to salary growth. Employers value experience as proof of competence, making them more open to raising wages for seasoned employees.
  3. Performance Reviews: Yearly performance assessments shape pay hikes. Positive feedback often leads to higher raises. The review delves into accomplishments, project involvement, and initiatives taken over the past year.
  4. Negotiation: When starting a new job, don’t shy away from negotiating a higher salary based on your achievements and past successes.
  5. Job Change: When avenues for salary growth are limited, exploring new job opportunities can yield substantial pay increases.


Since salary calculations are often tedious, most people in India prefer the online take-home salary calculator. Fisdom’s take-home salary calculator is a free tool that can be used anytime. It offers the required data on salary within a matter of seconds and without any errors. While using the calculator, users must ensure to provide correct values for accurate results.


What do I need to know to use the In hand salary calculator?

To use the take-home salary calculator, you should know your annual gross salary, if applicable. The calculator will show accurate results if you also enter components like HRA, rent paid, medical insurance premium and EPF amounts.

How does the In hand salary calculator determine the income tax?

The calculator uses the CTC input by the user along with the tax regime selected. Through back-end workings, it estimates the annual tax applicable as per income tax slab rates applicable.

Which is better, new or old tax regime?

The difference between old and new tax regimes is the slab rate. In the new tax regime, no deductions can be claimed v/s the old regime, which allows many deductions. Choosing between the two depends on one’s income structure, deductions applicable, and individual preferences.

How do I know the break-up of my salary?

To know the break-up of your gross salary, you can contact your employer or look through the monthly payslip.

Does the gross pay & take home salary calculator consider tax deductions?

Yes, the calculator takes into account applicable deductions to arrive at the net tax payable and thereafter, the take-home salary

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