Understanding Your Salary Structure: CTC vs In-Hand Salary
How EMI is Calculated in India
EMI (Equated Monthly Installment) is the fixed monthly payment you make towards a loan. It includes both principal and interest components.
EMI depends on three factors:
- Loan Amount
- Interest Rate
- Loan Tenure
EMI Formula:
EMI = P x r x (1 + r)^n / [(1 + r)^n - 1]EMI Variations
Home loans usually have lower EMI due to longer tenure and lower interest rates, while personal loans have higher EMI.
GST Calculation Explained (CGST, SGST & IGST)
GST (Goods and Services Tax) is an indirect tax applied on goods and services in India.
There are two main calculation types:
- Exclusive GST - tax added on base price
- Inclusive GST - tax already included in price
GST Split
For intra-state sales, GST is split into CGST and SGST, and for inter-state sales, IGST applies.
GST Rates
GST rates in India are typically 5%, 12%, 18% and 28%.
FD & RD Maturity Calculation
Fixed Deposits (FD) and Recurring Deposits (RD) are popular low-risk investment options in India.
FD Details
FD earns compound interest on a lump sum investment.
FD Formula:
A = P x (1 + r/n)^(n x t)RD Details
RD grows through monthly contributions.
RD Calculation
RD maturity depends on monthly deposits, tenure, and interest rate.
Salary Breakup & Take-Home Calculation
Your CTC (Cost to Company) is not your take-home salary. Take-home salary is calculated after: Employer PF & Gratuity deduction, Employee PF, Income tax (Old or New regime), and Professional tax. Choosing the right tax regime can significantly impact your monthly salary.
NPS, PPF & Gratuity Explained
These are long-term retirement and savings instruments. PPF is safe, tax-free, and government-backed. NPS is market-linked retirement corpus. Gratuity is an employer benefit after 5 years of service. Each has different tax benefits and withdrawal rules.
Related Calculators
Use these calculators to apply what you've learned