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Salary Hike Calculator

Work out your new salary from a hike percentage, or the percentage between your old and new salary, and whether the raise beats inflation.

What is a salary hike calculator?

A salary hike calculator works out what a raise means in money. Give it your current salary and a percentage to get the new salary and the extra amount per month and year, or give it two salaries to get the hike percentage between them, useful when weighing a job offer.

It also shows your real raise after inflation, the growth in what your salary can actually buy. That's the number that tells you whether you're getting ahead. The calculator works in rupees or any other currency, with lakh/crore or million formatting.

How to use the Salary Hike Calculator

  1. 1.Choose what you know

    The hike percentage, or the new salary you've been offered.

  2. 2.Enter the numbers

    Your current yearly salary and the hike or new salary.

  3. 3.Check the real raise

    Add this year's inflation to see how much your buying power actually grew.

Example: a 10% hike on ₹8 lakh

A ₹8,00,000 salary raised by 10%, in a year with 6% inflation:

New salary
₹8,80,000
Extra per month
₹6,667
Real raise after inflation
3.77%

real raise = 1.10 ÷ 1.06 − 1

Of the 10%, about six points only keep up with rising prices; the real gain is 3.77%.

Hike and real raise

New salary = current salary × (1 + hike ÷ 100), and hike % = (new − current) ÷ current × 100. Monthly figures are the yearly ones ÷ 12.

The real raise removes inflation: (1 + hike) ÷ (1 + inflation) − 1. A 5% hike in a year of 6% inflation is a real pay cut of about 0.9%, even though the number on your payslip went up.

Frequently asked questions

How do I calculate a salary hike percentage?

Subtract the old salary from the new one, divide by the old salary and multiply by 100. ₹8 lakh to ₹10 lakh is a 25% hike.

What is a good salary hike in India?

Average annual increments have run around 9–10% in recent years; job switches often bring 20–40%.

Should I compare CTC or in-hand pay?

Both. A CTC hike can come with more variable pay or PF, so check the in-hand salary calculator too.

Does the hike move me to a higher tax slab?

Only the income above the slab limit is taxed at the higher rate, so a raise never lowers your take-home pay overall.

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