Appraisal time brings one question: what does the hike actually mean in rupees? This calculator shows your new salary after a percentage hike, how much more you get each month and each year, and it can also work backwards to find the hike percentage from an offer letter.
How to use the salary hike calculator
- Choose what you want to find: the new salary from a hike %, or the hike % from old and new salary.
- Enter your current monthly salary.
- Enter the hike %, or the new monthly salary if you are finding the hike %.
Use the same basis for both salaries, either in-hand or gross, so the comparison is fair.
Formulas
New salary = current salary × (1 + hike % ÷ 100)
Hike % = (new salary − current salary) ÷ current salary × 100Example
Your salary is ₹50,000 a month and you get a 10% hike.
- New salary: 50,000 × 1.10 = ₹55,000 a month
- Increase: ₹5,000 a month, or ₹60,000 a year
- New yearly salary: ₹6,60,000
If instead your offer letter says ₹56,000 a month, your hike is (56,000 − 50,000) ÷ 50,000 × 100 = 12%.
Things to keep in mind
- A hike on CTC is not the same as a hike in hand. PF, gratuity and tax take a share. See your take-home with the salary calculator.
- A higher salary can move you into a higher tax slab. Check with the income tax calculator.
- Compare your hike with inflation. With 5 to 6% inflation, a 5% hike barely keeps your buying power the same.
FAQ
How do I calculate a 15% hike on my salary?
Multiply your salary by 1.15. On ₹40,000 a month, a 15% hike gives ₹46,000.
What is a good salary hike in India?
It varies by industry, role and performance. Many companies give average hikes of around 8 to 10%, with higher raises for top performers and job changes.
Is increment the same as hike?
Yes. Both mean the rise in your salary, usually given as a percentage of your current salary.