Finance · Free tool
CTC Optimizer
Standard structure: Basic 40% of CTC, HRA 50% / 40% of basic, LTA ₹50k, NPS 80CCD(2) at 10% of basic, EPF 12% × 2. Approximate take-home estimate (old regime).
₹25,00,000
₹35,000
30%
Monthly in-hand
₹1,31,640
Annual: ₹15,79,680
Basic
₹10,00,000
HRA
₹5,00,000
HRA exempt
₹3,20,000
EPF (employee)
₹1,20,000
NPS (employer)
₹1,00,000
Annual tax
₹5,80,320
FAQ
Why is Basic 40% the sweet spot?
Higher Basic → more PF (12% × 2 = 24%) — locks in retirement money but reduces in-hand. Lower Basic → less PF, more in-hand now. 40% is a balanced default.
Should I push for higher NPS in CTC?
10% of basic via 80CCD(2) is the cap and is fully tax-free. Beyond that doesn't add tax benefit but reduces in-hand. Worth maxing if your employer offers it.
Old vs new regime — does CTC structure matter?
Under new regime (default FY 25-26), HRA exemption is gone. So pure-Basic + flat allowance is more efficient. Under old regime, the structured split helps.