Salary hike calculator
Got a new number, or a percentage? I’ll turn one into the other and show you what the hike means each month, on CTC and in hand.
Your hike
20%
₹2,00,000 more a year
- Current salary, a year
- ₹10,00,000
- New salary, a year
- ₹12,00,000
- Difference, a year
- ₹2,00,000
- Difference, a month
- ₹16,667
Estimates for planning, not tax or legal advice. Rules change with each Budget and differ by employer, so check your offer letter, payslip or a professional before you act.
How it’s calculated
The formula
New salary = current salary × (1 + hike % ÷ 100)
Worked example
From ₹10,00,000 to ₹12,00,000: (₹12,00,000 − ₹10,00,000) ÷ ₹10,00,000 × 100 = 20%. That’s ₹2,00,000 more a year, or ₹16,667 a month before tax.
The other way: a 15% hike on ₹10,00,000 gives ₹10,00,000 × 1.15 = ₹11,50,000.
The rules
- Compare like with like: CTC with CTC, or fixed pay with fixed pay. Mixing a new CTC with an old fixed salary inflates the hike.
- The in-hand comparison runs both salaries through my CTC to in-hand calculator with the same assumptions: new regime, basic at 40% of CTC, 12% PF, gratuity in CTC and Karnataka professional tax.
- Your in-hand rise is usually a smaller percentage than your CTC hike, because more of the extra money falls in higher tax slabs.
Questions people ask
How do I calculate my hike percentage?
Subtract your current salary from the new one, divide by the current salary and multiply by 100. ₹10 lakh to ₹12 lakh is a 20% hike.
Why is my in-hand hike smaller than my CTC hike?
Income tax is progressive, so the extra money is taxed at your highest slab. PF also rises with basic. Tick ‘Compare in-hand pay too’ to see both numbers.
Should I compare CTC or fixed pay?
Fixed pay is the safer comparison, because variable pay depends on performance. If the new offer moves money from fixed into variable, a CTC hike can hide a smaller guaranteed rise.
Is a hike on switching jobs different from an appraisal?
The maths is the same. What changes is your leverage: before you accept an offer you can negotiate, and the number you agree becomes the base for every future hike.
Can I use this for a pay cut?
Yes. If the new salary is lower, the hike shows as a negative percentage and the difference turns red.
Numbers done. Now the decision.
Tell me what the numbers mean for you, and I’ll help you decide what to do next.