Salary Calculator

Cost to Company (CTC)

₹ 1000
₹ 1 Cr

Bonus Included in CTC

1 %
92 %

Monthly Professional Tax

₹ 1800
₹ 10000

Monthly Employer PF

₹ 1
₹ 10000

Monthly Employee PF

₹ 1
₹ 10000

Monthly Additional Deduction (Optional)

₹ 1
₹ 10000

Monthly Additional Deduction (Optional)

₹ 1
₹ 10000

Total Monthly Deductions
₹ 11,300

Total Annual Deductions
₹ 135,600

Take Home Monthly Salary
₹ 38,700

Take Home Annually Salary
₹ 464,400

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Salary calculator

Figuring out your salary and understanding the various components of your compensation package can be confusing. A salary tax calculator is a valuable tool that can help demystify your pay structure and allow you to easily estimate your net take-home salary after deductions. In this guide, we'll discuss how to calculate salary hike percentages.

What is a Salary Calculator?

A salary tax calculator is an online tool that lets you input details about your pay structure, tax liability, deductions, and benefits to arrive at a net take-home salary figure. It acts as a payroll simulator that considers your gross income, taxes, provident fund, insurance, and other components to estimate your actual in-hand salary.

Salary calculators are available on various financial websites and come in handy when you are:

  • Comparing job offers with different compensation packages
  • Budgeting monthly finances and expenses
  • Estimating actual deductions and tax liability
  • Planning investments and tax-saving options
  • Understanding the tax burden on your income
  • Modeling a salary hike or bonus to see the impact on your take-home pay

What are the Components of the Salary Structure?

It is important to understand the key components that make up your salary structure:

  • Basic Salary: This is the core fixed component decided as per your job role and skills. It is specified in your appointment letter. One of the most important inputs in a salary calculator is the basic salary calculation, which refers to the core fixed component of your compensation that is specified in your employment contract.
  • House Rent Allowance (HRA): Tax-free allowance given to cover your housing rental expenses. It is usually 40-50% of your Basic.
  • Conveyance Allowance: Given to cover commute expenses. It can be a fixed lump sum.
  • Leave Travel Allowance (LTA): Tax-free vacation trip and travel expenses allowance.
  • Special Allowance: Additional component to supplement your basic salary. It is fully taxable.
  • Personal Allowance: A small tax-free allowance for personal expenses.
  • Employer's Provident Fund (EPF) Contribution: 12% of your basic salary invested toward retirement corpus.
  • Voluntary Provident Fund (VPF): An optional deduction allowing you to invest more toward a Provident Fund.
  • Gratuity: Lump sum payment is given on retirement by the employer as per Gratuity Act.
  • Performance Linked Bonus/Incentive: A variable percentage of your basic salary paid out annually based on your performance.

Understanding these components will help you accurately input your salary details into the calculator. You must also understand how to calculate tax on salary.

How Do Salary Calculators Work?

A Salary tax calculator uses your inputs on the salary components to apply standard tax and deduction rules to estimate your take-home pay. Here is a brief overview of how they work:

  • You enter your annual Gross Salary amount which can be found in your offer letter or employment contract. This includes Basic, HRA, Allowances, and any other additional components.
  • You enter details of your investments and tax saving deductions for the year such as 80C deductions, home loan principal repayment, life insurance premium payment, etc.
  • The calculator will compute your taxable income by deducting the tax-exempt components like HRA, LTA, etc. Salary calculators use standard salary calculation formula accounting for tax rates, deductions and exemptions to provide an accurate estimate of your net take-home pay.
  • Based on your taxable income it will calculate your tax liability as per the income tax slab rates specified by the Income Tax Department.
  • It will factor in cess and other surcharges on your tax liability to arrive at your total tax payable figure.
  • It will deduct this tax payable amount and expenses like EPF, insurance premiums, etc. from your annual gross salary.
  • After all deductions, the final output is your annual net take-home salary and monthly in-hand salary.
  • Some calculators also allow you to simulate your annual tax liability and take-home pay for future years or alternate scenarios with different income and investment levels.

How to Use the IIFL Salary Calculator?

IIFL Securities offers an easy-to-use online salary income tax calculator that lets you get a detailed breakup of your salary components and estimate your in-hand earnings.

Here are the key steps to use it:

  • Visit the IIFL Salary income tax calculator page and start by entering your Annual Cost to Company (CTC). This includes Basic, HRA, Conveyance and any Special Allowance.
  • Enter details of your monthly investment declarations for tax-saving schemes like EPF, PPF, NPS, ELSS, etc.
  • Input your basic personal details like your age and residential status.
  • Provide information on any home or education loan you may have to calculate benefits under Sections 24 and 80E.
  • The calculator will show your taxable income and the tax you must pay based on the current tax regime and rates.
  • It will also display a detailed salary breakup showing how much you will receive after all deductions. When using a salary calculator, it's crucial to know how to calculate HRA in salary as house rent allowance is a common tax-exempt component that can significantly impact your take-home pay.
  • You can tweak the inputs and assumptions to simulate alternate scenarios and view the impact on your take home salary.
  • The IIFL calculator ensures complete transparency on your earnings and deductions so you can plan your finances effectively.

Benefits of Using a Salary Calculator

Using an online salary income tax calculator offers the following useful advantages:

  • Estimate Post-Tax Income: The best part is that salary calculators give you a sneak peek into your actual take-home pay after all those confusing taxes and deductions. Just input your salary details, and voila! It will tell you exactly how much will hit your bank account each month. No more nasty surprises on pay day when your in-hand amount is less than expected!
  • Compare Job Offers: Monthly salary calculator are a lifesaver when choosing between job offers from different companies. You can accurately compare the post-tax salaries and real value of benefits like insurance, retirement accounts, stock options etc. This allows you to make an informed decision on which offer will maximize your earnings.
  • Calculate Tax Liability: These tools also help calculate your tax liability based on income tax slab rates, deductions, cess - all the boring tax stuff. This clarifies how much tax you need to pay on your income and how you can legally optimize it through proper declarations and exemption claims.
  • Plan Your Budget: Knowing your exact monthly in-hand salary will help you plan your budget and expenses wisely. After seeing your net monthly earnings from a monthly salary calculator, you can figure out how much you can allocate for rent, loans, shopping and investments. No more overspending beyond your means!
  • Model Salary Hikes: Excited about that big promotion with a fatter pay? Use a salary calculator to see exactly how that hike translates into your hand salary after taxes. You may realize the actual hike is lower than your expectations. It helps make informed decisions while negotiating salary with your boss.


Using an online salary calculator can simplify your earnings and taxation calculations. It provides you valuable insights into your take-home pay to help you budget your expenses and also tax planning. So don't hesitate to leverage this useful tool for all your salary related needs!


Q1. How accurate are the salary calculations?

Salary calculators give you a good estimate of your earnings by using standard tax rules and calculations. However, it may not match up to the last rupee with actual salary payouts, which also depend on your employer’s policies.

Q2. How are bonuses and hikes accounted for?

You can enter details of expected bonuses or future hikes in the annual gross salary field to see the impact on your take home pay. Enter the total expected annual earnings.

Q3. Can I calculate past salary earnings?

Most calculators allow you to enter income details from previous years to estimate taxes and earnings for historical periods. This can be useful for tax planning.

Q4. What salary components should I include?

Ensure you include all taxable and tax-exempt components like Basic, HRA, LTA, Bonus, and Allowances that are listed on your salary slip to get an accurate calculation.

Q5. Does it consider my personal tax deductions?

Yes, after factoring these, you can enter details of your 80C and 80D tax saving investments and deductions to calculate your tax liability.