How to calculate monthly Take Home Salary in India (Excel calculator inside)!

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What is Take Home Salary?

The spendable amount of money that you'll receive from the employer after all deductions.

Many of my friends, colleagues and juniors in India are sending me their offer letters, to judge whether their offer is worth on take home salary calculation front. Just sharing the take home salary excel calculator I created.

HALF of the professional workers in India don't know whether their CTC is worth it or not.

They blindly accept the offer.

Companies may trick you by making your CTC look big.

The Benefits can't be your Take Home salary - because you can't get them in hand.

Eg., - Accident insurance can't be received in hand as monthly salary. You shall claim only when you meet with an accident (that too after submitting lots of medical bills and upon verification)

The Take Home Calculation

The Take Home calculation is the sum of Basic Pay, HRA, Conveyance, Education, LTA or other allowances.

Your Take home doesn’t include the Company Contribution to PF, or any other benefits given by your company.


Salary calculator
Salary Calculator India

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* Tested & verified on HP, KONE, HCL, CSC, iNautix and Flextronics Payslips (best suits IT professionals in India)

You can download the excel sheet on successful payment. The excel sheet calculates exact monthly salary which you’ll receive inhand.

Note: Enter whatever is available in your offer letter, do not worry about the missing components. Some components PF, Company contribution to PF, Insurances etc aren’t included in the excel sheet, they aren’t a part of monthly salary.

There are 2 tabs in the excel sheet – One yearly and One monthly.

Download the calculator, enter your offer letter details into the orange boxes in the excel sheet, get your take home calculated in minutes

Explained: The Take Home or Monthly Salary Components

Basic Salary

This is fixed, no bonuses or allowances are added in it. This is common across all companies. 12% Basic Pay deduction Employee Provident Fund account. Anything beyond 12% basic salary becomes taxable!

HRA / House Rent Allowance

This is an allowance given by the employer to the employee to fulfill the employee’s accommodation needs. This component is subject to tax exemption based on a calculation.

Conveyance or Transport Allowance

Transport allowance that companies give you; fully tax exempted (CTC should have this component mentioned for exemption).

Education Allowance

This allowance is applicable if you have children. Maximum of 100 per month is tax exempted and limited to 2 children only (CTC should have this component mentioned to avail for exemption)

Medical allowance / Medical Reimbursement

Medical allowance is tax exempted up to INR 15000.. Anything over it is taxable

LTA / Leave Travel Allowance

You could claim a tax exemption on the LTA amount mentioned in your CTC. You will have to submit an up and down journey ticket ( with the receipt) to claim this amount.

(CTC should have this component mentioned to avail for exemption)

Meals / Meal Coupons

Some companies issue meal coupons Sodexo passes (CTC should have this component mentioned to avail for full tax exemption). Maximum limit is the amount mentioned in CTC.

Other Allowances

Other allowances like Special Allowance, Advanced Statuatory Bonus, Supplementary Allowance, Lifestyle allowance, Holiday allowance, City Compensatory allowance, Deployment allowance / Performance incentives / Performance linked incentives, Personal allowance, Dearness Allowance are completely taxable.




I know my CTC and Split-ups, will this Calculator calculate my monthly in-hand salary?

Yes, of course!

Is this Calculator for Fixed Pay or Variable Pay?

It suits both.

The ‘Salary Calculator’ is designed to input only the Fixed Components of your CTC. Do not worry about the other missing components in the calculator, they are your variable components which doesn’t come to your hand monthly.

Which Companies use this Salary Calculator? Can you list them?

I’ve personally tested on HCL, CSC, KONE, Flextronics and iNautix salary payslips, all my colleagues are using it.

I received my offer letter from a company, but I am unable to understand it completely. Will this Calculator help?

Yes, of course!!!

Well, why do I need to understand the monthly salary components mentioned above?

The answer is simple, it gives an idea on how to save hard-earned money from being paid as income tax. Want to know more on income tax calculation? Click here



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22 thoughts on “How to calculate monthly Take Home Salary in India (Excel calculator inside)!”

  1. My friend cleared an interview and she need to join the new employer by tomorrow.
    She lied about her current salary to get a good hike and ow she want me to create a new salary slip for her according to what she mentioned at the time of interview.
    Now I got confused when it came to calculations so I was just searching on Quora and found your link and this article helped me a lot.

  2. Thank you, Rakesh!

    Good to hear!

    I would really appreciate your helping tendency towards your friend, but I would suggest going with her current salary slip. Companies are very strict with background verifications now, so lets not give an opportunity for them to mark red flag on her; If HRs find this out, she might also be terminated on unethical grounds.

    Just my two cents!

    Best wishes!

  3. My CTC is 28066/- per month working in chennai . so what is the calculation of PF and Basic, HRA, convynce allwnce,medical allwnce,LTA,other allowance .. is ESI applicable .. please clarify for what ever CTC how to calculate the other allowances ??


    My CTC is 28806/- per month working in chennai . so what is the calculation of PF and Basic, HRA, convynce allwnce,medical allwnce,LTA,other allowance .. is ESI applicable .. please clarify for what ever CTC how to calculate the other allowances ??

    1. Hi Kapil, I’m really not sure on this. Normally people come to me asking for Take-home calculation. What you’re asking is vice-versa. I am working on it, will get back in case I get an answer.

      A temporary solution I suggest is to check your Payslips, offer letter or contact you HR.

  5. Hey Prabha,

    I have got a new Offer and need to understand the in-hand assuming full investment in 80C and Medical Premium and rent.

    COuld you helpe me on this?

  6. Why did click on excel tool automatically result in buying it ???? Also, i never got the tool in mail. Is this some scam..i need to report.

  7. Pingback: How to Save money from Salary in India? - MADBUCKS

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