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Salary Decoder

One CTC in — in-hand, tax regime, SIP, rent & loan headroom out

Reviewed by the PaisaTools Editorial Team · Last reviewed September 2026 · Applicable to FY 2026-27 (AY 2027-28)

₹

The package on your offer letter

%

Check your offer's salary structure — 40–50% is typical

Standard structure assumed: HRA = 50% of Basic, employer + employee PF = 12% of Basic each, gratuity 4.81%, professional tax ₹200/mo. Tax on the new regime, FY 2026-27.

Your real take-home (per month)

₹85,395

Payslip gross / year

₹10,99,140

All deductions / year

₹74,400

Your tax regime

New regime

Saves ₹1,12,245/yr vs the other regime on a standard structure. Rent, 80C or a home loan can flip it.

Compare with your deductions

Safe to invest (50/30/20)

₹17,100/mo

A ₹17,100 SIP at 12% for 25 years grows to ~₹3,24,49,560 — you invest ₹51,30,000, the market adds the rest.

Tune your SIP

Emergency fund target

₹5,12,370

6 months of take-home, parked in a liquid fund or FD — built before bigger investing.

Park it in an FD

Affordable rent

₹25,619/mo

The ~30% guideline. Paying significant rent? HRA exemption may make the old regime win.

Check your HRA exemption

Home-loan headroom

₹39,36,055

Banks cap EMIs near 40% of take-home (₹34,158/mo). At 8.5% for 20 years that supports roughly this loan.

See the EMI schedule

Every calculator answers one question; your offer letter raises six. The Salary Decoder chains our calculators together — CTC → in-hand → tax regime → investable surplus → emergency fund → rent → loan headroom — so one input shows the whole picture, with each card linking into the full tool, prefilled, when you want depth.

The rules of thumb (50/30/20 budgeting, 6-month emergency fund, ~30% rent, 40% EMI ceiling) are widely used guidelines, not laws — treat the output as a starting map, then tune each piece to your life.

Salary structure follows standard Indian conventions (employer/employee PF at 12% of Basic per the EPF Act, gratuity at 4.81% per the Payment of Gratuity Act, state professional tax). Income tax uses the FY 2026-27 slabs, standard deductions and §87A (section 156 of the new Income-tax Act, 2025) rebate as notified by the Income Tax Department. SIP and EMI math use the standard future-value and amortisation formulas. 50/30/20, the 6-month emergency fund, ~30% rent and the 40% EMI ceiling are common planning guidelines, stated as such.

  • Employers structure components differently — treat splits as typical, not exact.
  • Tax and PT portions are simplified and state-dependent.
What does the Salary Decoder do?
It turns one number — your CTC — into your full financial picture: monthly in-hand salary, which tax regime costs less, a 50/30/20 investment amount with its long-term projection, a 6-month emergency-fund target, an affordable-rent guideline and your rough home-loan eligibility. Each card links into the full calculator with your numbers prefilled.
How is in-hand salary calculated from CTC?
A standard structure is assumed: Basic at your chosen % of CTC, HRA at 50% of Basic, employer PF and gratuity removed from CTC to get payslip gross, then employee PF, professional tax and new-regime income tax (FY 2026-27) deducted. Adjust the Basic % to match your offer letter.
What is the 50/30/20 rule?
A budgeting guideline: ~50% of take-home for needs, 30% for wants, 20% for savings and investments. The decoder uses the 20% as your suggested SIP and projects it at 12% over 25 years — tune both in the SIP calculator.
How is home-loan eligibility estimated?
Lenders generally cap total EMIs near 40–50% of take-home. The decoder uses a conservative 40%, then computes the loan that EMI supports at 8.5% over 20 years. Actual eligibility varies by bank, credit score and existing EMIs.
Is this comparing job offers too?
Yes — open it twice with each offer's CTC and Basic %, or change the slider and watch every number update. A higher CTC with a lower Basic % can mean less monthly cash but more retirement savings.

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