Salary Hike Calculator
Work out your new salary from a hike percentage, or the hike percentage from an offer, and see what the raise is worth after inflation.
Your assumption, used for the real hike.
New annual salary
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Hike
Real hike
What the raise means
Increase a year
Increase a month
New gross a month
These are gross figures. To see your take-home pay after PF, professional tax and income tax, use the CTC to in-hand salary calculator.
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If the same hike repeats every year
| Year | Annual salary | Monthly | In today's money |
|---|
"In today's money" divides each year's salary by your inflation rate compounded for that many years. Figures are gross and illustrative; they ignore tax, variable pay and changes in the CTC structure.
How to calculate a salary hike
New salary = current salary × (1 + hike % ÷ 100). A 10% hike on a ₹10,00,000 salary gives ₹11,00,000 a year, an increase of ₹1,00,000, or about ₹8,333 a month before tax.
Hike % = (new salary ÷ current salary − 1) × 100. If an offer takes you from ₹10,00,000 to ₹13,00,000, the hike is 30%.
Hike % = (New − Old) ÷ Old × 100
Compare like with like. If one figure includes variable pay, joining bonus or employer PF and the other does not, the percentage will mislead you. Fixed pay against fixed pay is the cleanest comparison.
Real hike: what your raise is worth after inflation
A raise only improves your standard of living by the amount it beats rising prices. The real hike is (1 + hike) ÷ (1 + inflation) − 1. An 8% hike with 5% inflation is a real hike of about 2.86%, not 3%. A 4% hike with 5% inflation is a real pay cut of about 0.95%.
The inflation box is your own assumption. Your personal inflation depends on what you spend on: rent, school fees and healthcare often rise faster than the overall price index. The inflation calculator shows what today's expenses could cost in the future.
Appraisal hike vs job-switch hike
An appraisal hike applies to your current pay, usually once a year. A switch resets your pay to whatever the new employer offers, so the jump can be much larger in one step. Either way, use the "I know the new salary" tab to turn an offer into a percentage you can compare.
Before you compare offers, check the structure, not just the total CTC:
- Fixed vs variable pay. Variable pay depends on performance and company results, so it may not be paid in full.
- One-time items. A joining bonus or relocation allowance inflates year-one CTC but not your base for next year's hike.
- Retirement benefits. Employer PF and gratuity are part of CTC but don't reach your bank account each month. See the gratuity calculator and EPF calculator.
- Take-home. A bigger CTC can push part of your income into a higher tax slab, so the in-hand increase is smaller than the CTC increase.
What to do with a raise
The simplest way to stop a raise disappearing into lifestyle spending is to raise your savings by part of it the month it starts. If your SIP grows each year with your salary, a step-up SIP calculator shows the effect over 10 to 25 years. If you don't yet have three to six months of expenses set aside, size that first with the emergency fund calculator.
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