Salary Hike Calculator
After an appraisal or a job switch, two questions come up: what will my new salary be, and what percentage hike is that? This calculator answers both. Enter your current salary and either the hike percentage or the new salary.
Last reviewed:
- Hike percentage
- 10%
- New salary per year
- ₹6,60,000
- New salary per month
- ₹55,000
- Increase per year
- ₹60,000
- Increase per month
- ₹5,000
It shows the revised pay and the increase per month and per year. Remember that a hike on your CTC or gross salary does not raise your in-hand pay by the same percentage, because taxes and PF also change. Use the CTC to In-Hand Calculator to see the take-home effect.
How to use this calculator
- Enter your current salary and choose whether it is per year or per month.
- Choose what you know: the hike percentage or the new salary.
- Enter that value.
- Read the hike percentage, the new salary and the increase.
Formula and variables
New salary = Current × (1 + Hike% ÷ 100) Hike % = (New − Current) ÷ Current × 100
- Current - your present salary, per month or per year.
- Hike % - the percentage increase in salary.
- New - the revised salary after the increase.
Worked example
Rahul earns ₹6,00,000 a year and gets a 10% hike. In the second example a job offer pays ₹7,20,000 on the same base.
| Current salary | ₹6,00,000 a year (₹50,000 a month) |
|---|---|
| Hike | 10% |
| New salary | ₹6,60,000 a year (₹55,000 a month) |
| Increase | ₹60,000 a year |
| Offer of ₹7,20,000 | a 20% hike |
- New salary = 6,00,000 × (1 + 10 ÷ 100) = ₹6,60,000.
- Increase = 6,60,000 − 6,00,000 = ₹60,000 a year, or ₹5,000 a month.
- For the job offer: (7,20,000 − 6,00,000) ÷ 6,00,000 × 100 = 20%.
What changes the result
- Base used for the hike. A hike may apply to fixed pay, gross salary or CTC. Confirm which before comparing percentages.
- Variable pay. If part of your pay is variable, the guaranteed increase is smaller than the headline hike.
- Taxes. A higher salary moves part of your income into a higher tax band, so take-home pay grows by less than the hike.
- Inflation. A hike lower than inflation reduces your purchasing power even though the number goes up.
Benefits and practical uses
- Quickly compare a new offer with your current pay.
- Check that an appraisal letter's figures are consistent.
- Convert between monthly and yearly figures.
- Understand the real size of a promotion.
Assumptions and limitations
- The hike applies to the whole salary equally.
- No tax, PF or other deductions are applied.
- Percentages are calculated on the salary you entered, whichever period it covers.
Frequently asked questions
How do I calculate salary hike percentage?
Subtract the old salary from the new one, divide by the old salary and multiply by 100.
How do I calculate the new salary after a hike?
Multiply the current salary by (1 + hike ÷ 100). A 10% hike on ₹6,00,000 gives ₹6,60,000.
Will my in-hand pay rise by the same percentage?
Usually not. Tax slabs, PF and other deductions change too, so take-home pay often rises by a different percentage.
Is a 20% hike on CTC the same as a 20% hike on gross?
Not necessarily. CTC includes employer contributions. Compare the gross and in-hand figures.
What is a good salary hike?
It depends on your role, industry and inflation. Compare it with inflation and with market pay for your experience.
References
Page last reviewed on . This calculator gives estimates for planning only; it is not financial advice and not an offer from any lender.