Processed entirely on your device — nothing is uploaded
How to use the salary hike calculator
- 1Enter your current annual salary or CTC.
- 2Choose whether you know the hike percentage or the new figure.
- 3Enter whichever you have.
- 4Read the revised salary or the percentage, plus what it adds each month.
Both directions, because offers come both ways
Appraisal conversations quote a percentage. Job offers quote a number. Comparing them requires converting one into the other, and doing it in your head under pressure is where people make mistakes they later regret.
Percentage to amount is straightforward: new = current × (1 + hike ÷ 100). A 15% hike on ₹6,00,000 gives ₹6,90,000. The other direction is the one that gets fumbled: hike% = (new − current) ÷ current × 100. From ₹6,00,000 to ₹6,90,000 is 15% — note the denominator is the old salary, not the new one. Dividing by the new figure gives 13%, and that error consistently understates what you have been offered.
The monthly increase is shown too, because that is the figure that actually changes your life. A ₹90,000 annual raise is ₹7,500 a month before tax, and considerably less after. Annual figures make raises sound larger than they feel.
A hike on CTC is not a hike in your hand
Cost to company includes things that never reach your bank account: the employer's provident fund contribution, gratuity provision, insurance premiums and often a variable component that is contingent on performance. A 20% CTC hike where most of the increase lands in the variable pot is not a 20% raise in take-home terms.
The provident fund portion is at least yours, even if you cannot spend it now. Gratuity provision is only yours after five years of service. Variable pay is only yours if targets are met, and the target is usually set by the person who made you the offer.
So when comparing two offers, compare the fixed components and then compare take-home separately. The salary calculator on this site breaks a CTC down, and the income tax calculator shows what the raise actually leaves you after tax — which matters more than the percentage once a raise pushes you into a higher slab.
What counts as a real raise
A raise below inflation is a pay cut in everything but name. At 6% inflation, a 5% increment leaves you about 1% worse off in purchasing power than the year before. The median increment in India has generally run in the 8–10% range, which after inflation is a real increase of perhaps 2–4%.
That framing is useful in two places. It tells you what to aim for in a negotiation — the meaningful question is what the increment is after inflation, not the headline number. And it explains why switching jobs has historically produced larger jumps than staying: internal increments are budgeted against a market-average pool, while an external offer is priced against what it would cost to hire someone new.
None of that means switching is right; there are compounding reasons to stay somewhere good. But the arithmetic is worth knowing before treating a 9% increment as generous.
Compounding your increments
Increments compound, and over a career the difference between a 8% and a 12% average is enormous. A ₹6,00,000 salary rising 8% a year reaches about ₹12,95,000 in ten years. At 12%, it reaches about ₹18,63,000. Same starting point, same period, a difference of nearly ₹6 lakh a year by the end.
This is why early-career negotiation matters disproportionately: every subsequent percentage increase applies to a higher base, so a one-time bump early compounds for the rest of your working life. The same applies in reverse to a period of flat salary.
The useful habit is to raise your investments with your income rather than your spending. A step-up SIP set to your increment percentage keeps your savings rate constant automatically — and the calculator for that is on this site too.
Frequently asked questions
How do I calculate a salary hike percentage?
(new salary − current salary) ÷ current salary × 100. The denominator is the old salary. Dividing by the new figure is a common error that understates the raise.
What is a good salary hike in India?
Median increments have generally run 8–10%. Against roughly 6% inflation, that is a real increase of about 2–4%. Switching employers has historically produced larger jumps than internal increments.
Is a hike on CTC the same as a hike in take-home?
No. CTC includes the employer's PF contribution, gratuity provision, insurance and often variable pay, none of which reaches your account monthly. Compare the fixed components, then compare take-home separately.
Does a raise push me into a higher tax bracket?
It can, but only the income above the threshold is taxed at the higher rate — you never take home less by earning more. The income tax calculator on this site shows the exact effect under both regimes.
Why does an early raise matter so much?
Because increments compound. A ₹6,00,000 salary rising 8% a year reaches about ₹12.95 lakh in ten years; at 12% it reaches about ₹18.63 lakh. Every later percentage applies to the higher base.
Is my salary information uploaded?
No. Everything is calculated in this browser tab and nothing is transmitted or stored.