Salary Hike Calculator

A quick way to read a raise

Appraisal letters and job offers rarely use the same language. Your manager may say "you are getting 9 percent", while a recruiter quotes a new annual CTC and leaves you to work out what that means against what you earn now. This calculator turns either figure into the other. Give it your current salary and the hike percentage to see the new salary, or give it the new figure to see the real percentage jump. Either way it also shows the increase per year and per month, which is the number most people actually feel in their account.

The salary hike formula

The arithmetic is simple, and it helps to know it so you can check any number quoted to you:

Hike % = (New salary - Current salary) / Current salary x 100

New salary = Current salary x (1 + Hike % / 100)

The base matters. A hike is always measured against the salary you have today, not the one you will have. A raise from Rs. 8 lakh to Rs. 10 lakh is a 25 percent hike, but a fall from Rs. 10 lakh back to Rs. 8 lakh is only a 20 percent cut. That asymmetry is why "only 20 percent less" often feels like a bigger loss than it sounds.

How to use it

1. Enter your current salary or CTC, and say whether you typed a yearly or a monthly figure.
2. Choose whether you know the hike percentage or the new salary, and fill in that one box.
3. Optionally add an inflation rate to see the hike in real terms.
4. To weigh two job offers, enter both offered salaries. The tool shows each one's hike over your current pay and which offer pays more, by how much each month.

A worked example

Arjun earns a CTC of Rs. 8,00,000 a year. His company offers a 12 percent hike, which takes him to Rs. 8,96,000, an increase of Rs. 96,000 a year or Rs. 8,000 a month before tax. Meanwhile two other companies make offers: Rs. 9,50,000 and Rs. 10,00,000. Those are hikes of 18.75 percent and 25 percent. Offer B pays Rs. 50,000 a year more, about Rs. 4,167 a month, and sits 6.25 percentage points higher. If inflation is running at 5 percent, his 12 percent internal raise is worth roughly 6.67 percent in purchasing power.

Compare like with like

A hike percentage is only meaningful when both salaries are measured the same way. CTC often includes the employer's PF contribution, gratuity, insurance premiums and a variable component that may not be paid in full. Fixed pay and in-hand pay are different again. If one offer quotes CTC and the other quotes fixed salary, convert them before you compare, or use our Job Offer Comparison tool to break both offers down line by line.

Good to know

• The monthly increase shown is before tax and deductions. Higher pay can move part of your income into a higher tax slab, so your take-home rises by less.
• The inflation figure is your own estimate. Use the rate that matches your city and spending, not only the headline number.
• This is an arithmetic aid. It does not judge whether a hike is fair for your role or industry.