Salary Hike Calculator
- Increase per year
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- Increase per month
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- New salary
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Checked against: 50,000 to 56,000 = a 12% hike; 6,00,000 with a 15% hike = 6,90,000 Last reviewed:
Sources and method
An illustration for general information, not financial advice, a quotation or an offer of credit. Figures from a lender or employer will differ.
Salary hike % = (New salary − Old salary) ÷ Old salary × 100. A raise from 50,000 to 56,000 is a 12% hike. To find the new salary after a hike, multiply by (1 + hike ÷ 100): 6,00,000 with a 15% hike becomes 6,90,000.
Use the first tab when you know both figures, for example to check an appraisal letter or compare a job offer with your current pay. Use the second when you know the percentage and want the new salary. The monthly figure divides the yearly increase by 12.
The formulas
Hike % = (New − Old) ÷ Old × 100
New salary = Old × (1 + Hike % ÷ 100)
Both are ordinary percentage-change sums; the percentage calculator handles the same arithmetic for any pair of numbers.
Worked examples
Checking an appraisal
Your CTC goes from 9,50,000 to 10,40,000. The increase is 90,000, and 90,000 ÷ 9,50,000 × 100 = 9.47%. Monthly, that is 7,500 more before deductions.
Comparing a job offer
You earn 72,000 a year and are offered 85,000. The hike is 13,000 ÷ 72,000 × 100 = 18.06%. If the offer includes a 5,000 variable component and your current pay has none, the fixed-pay hike is 8,000 ÷ 72,000 = 11.11%.
Working back from a hike
After a 12% hike you earn 5,60,000. Your previous salary was 5,60,000 ÷ 1.12 = 5,00,000, not 5,60,000 minus 12%. The reverse percentage calculator explains why.
New salary after common hikes
| Current salary | +5% | +8% | +10% | +12% | +15% | +20% | +30% |
|---|---|---|---|---|---|---|---|
| 300,000 | 315,000 | 324,000 | 330,000 | 336,000 | 345,000 | 360,000 | 390,000 |
| 500,000 | 525,000 | 540,000 | 550,000 | 560,000 | 575,000 | 600,000 | 650,000 |
| 800,000 | 840,000 | 864,000 | 880,000 | 896,000 | 920,000 | 960,000 | 1,040,000 |
| 1,200,000 | 1,260,000 | 1,296,000 | 1,320,000 | 1,344,000 | 1,380,000 | 1,440,000 | 1,560,000 |
| 40,000 | 42,000 | 43,200 | 44,000 | 44,800 | 46,000 | 48,000 | 52,000 |
| 60,000 | 63,000 | 64,800 | 66,000 | 67,200 | 69,000 | 72,000 | 78,000 |
| 90,000 | 94,500 | 97,200 | 99,000 | 100,800 | 103,500 | 108,000 | 117,000 |
How yearly hikes add up
| Yearly hike | Total after 5 years | Total after 10 years | Salary multiple after 10 years |
|---|---|---|---|
| 3% a year | 15.9% | 34.4% | 1.34× |
| 5% a year | 27.6% | 62.9% | 1.63× |
| 8% a year | 46.9% | 115.9% | 2.16× |
| 10% a year | 61.1% | 159.4% | 2.59× |
| 15% a year | 101.1% | 304.6% | 4.05× |
Hikes compound like interest: each one applies to a salary that already includes the previous ones. That is why a steady 10% a year more than doubles pay in under eight years.
Things that change the real value of a hike
- Inflation. Subtract the inflation rate (approximately) to see whether your pay is growing in real terms.
- Tax. If the raise moves you into a higher tax band, your take-home pay rises by a smaller percentage than your gross pay.
- Fixed versus variable pay. A hike that comes mostly as variable or performance pay is less certain than the headline figure suggests.
- Hours. A higher salary for more hours may be a smaller hike per hour. The salary calculator converts annual pay to an hourly rate.
Common mistakes
- Dividing by the new salary. The hike is measured against the old one.
- Comparing CTC with take-home pay. Use the same measure for both figures.
- Adding yearly hikes. Three 10% hikes are 33.1% in total, not 30%.
This calculator is for general information. It does not account for tax, deductions or benefits, and it is not financial advice.
Frequently asked questions
How do I calculate my salary hike percentage?
Subtract your old salary from your new one, divide by the old salary and multiply by 100. From 50,000 to 56,000: 6,000 ÷ 50,000 × 100 = 12%.
How do I calculate my new salary after a hike?
Multiply your current salary by 1 plus the hike as a decimal. A 15% hike on 6,00,000 is 6,00,000 × 1.15 = 6,90,000.
Should I calculate the hike on CTC or take-home pay?
Use the same measure on both sides. Hikes are usually announced on CTC or gross salary. Your take-home pay can rise by a different percentage because tax, provident fund and other deductions do not all scale in step.
Is a 10% hike every year the same as 20% over two years?
No, it is slightly more. Two 10% hikes multiply: 1.10 × 1.10 = 1.21, so 21% over two years.
What is a real salary increase?
Your hike minus inflation, approximately. A 7% hike in a year with 5% inflation is a real increase of roughly 2% in what your pay can buy. The exact figure is 1.07 ÷ 1.05 − 1 = 1.9%.
How do I work out a hike when changing jobs?
Compare like with like: fixed pay with fixed pay, or total CTC with total CTC. Variable pay, joining bonuses and stock grants are often not paid in full, so many people calculate the hike on fixed pay and treat the rest separately.