What the Salary Hike Calculator does
This salary hike calculator works out your new salary from a percentage hike - or the hike percentage between your current and new CTC, or the effect of a fixed increment - and shows the result per year and per month, the increase in money, what the rise is worth after inflation, and a projection of your salary over the next few years.
It works in rupees, dollars, pounds or euros, with Indian lakh and crore grouping for rupee amounts, and accepts either annual or monthly figures. All figures are gross, before tax and deductions, and nothing you type leaves your browser.
How to use it
- Choose what you know: the hike percentage, the new salary you have been offered, or the increment amount.
- Pick the currency and whether your figures are per year (CTC or annual salary) or per month, then type the current salary and the hike, new salary or increment.
- Enter the inflation rate you want to compare against. A hike only increases what you can buy if it is higher than inflation.
- Optionally set how many years to project and the hike you expect in later years; by default the same percentage is repeated.
- Read the new salary or the hike percentage at the top, the monthly and annual increase in the tiles, the real-terms verdict, and the projection chart and table. Copy the summary or download the projection as CSV.
Reading the results
The hike percentage is always measured from the current salary: going from 8.5 lakh to 11 lakh is a 29.41% hike, even though 11 lakh to 8.5 lakh would be a 22.73% cut. That asymmetry is why percentages quoted by recruiters and employers can sound larger or smaller than expected.
The real change divides by inflation rather than subtracting it: a 10% hike with 5% inflation is (1.10 / 1.05) − 1 = 4.76% in real terms, slightly less than the 5 points you might expect. A negative real change means the raise has not kept up with prices.
The projection compounds the hike each year. It shows how quickly regular raises add up, and how much of that growth inflation absorbs - the dashed line is the same salary in today's money.
Worked example: a 10% hike on a 6 lakh CTC
Current CTC ₹6,00,000 a year with a 10% hike: the new CTC is 6,00,000 × 1.10 = ₹6,60,000 (6.6 lakh), or ₹55,000 a month. The increase is ₹60,000 a year, ₹5,000 a month, before tax.
With 5% inflation, the new salary is worth 6,60,000 / 1.05 = ₹6,28,571 in today's prices, a real rise of 4.76% or about ₹28,571 a year. A 5% hike would only have kept pace.
Offer check: moving from ₹8,50,000 to ₹11,00,000 is (11,00,000 / 8,50,000 − 1) × 100 = 29.41%. A UK salary of £2,800 a month rising by £150 a month is a 5.36% rise; against 3.8% inflation that is 1.50% in real terms.
Formulas and scoring rules
- New salary from a hike
new = current × (1 + hike% / 100)- Hike percentage
hike% = (new / current − 1) × 100An increment amount is first added to the current salary.- Monthly from annual
monthly = annual / 12Monthly inputs are multiplied by 12 first; nothing else is assumed about bonuses or thirteenth-month pay.- Real (inflation-adjusted) rise
real% = ((1 + hike%) / (1 + inflation%) − 1) × 100The Fisher relation; the break-even hike equals the inflation rate.- Projection
salary_year_n = new × (1 + g)^(n − 1); in today's money = salary_year_n / (1 + inflation)^ng is the later yearly hike (default: this hike). Amounts are rounded to whole currency units for display.
Limitations: what the result does not prove
- Gross pay only. Income tax, provident fund, pension contributions, national insurance or social security and professional tax are not deducted, so take-home pay rises by less than the figures here.
- A CTC can include employer contributions, gratuity, insurance and variable pay that never arrive in your monthly salary. Compare like with like - fixed pay with fixed pay.
- Inflation is a single rate you choose. Your own costs - rent, school fees, a loan - may rise faster or slower than the national index.
- The projection assumes the same hike every year. Promotions, job changes, freezes and bonuses make real careers far less smooth.
Privacy: where your data goes
Everything you paste, type or drop is processed in this browser tab. It is not uploaded, logged, stored or sent to analytics. Session recording and tag-manager scripts are switched off on this page.
Standards and sources
- Ministry of Statistics and Programme Implementation (India) - Consumer Price Index
- Office for National Statistics (UK) - Consumer price inflation
- US Bureau of Labor Statistics - Consumer Price Index
- Investor.gov (US SEC) - Inflation and purchasing power
Frequently asked questions
How do I calculate my new salary after a percentage hike?
Multiply the current salary by one plus the hike as a decimal. A 12% hike on ₹5,00,000 is 5,00,000 × 1.12 = ₹5,60,000. The calculator does this and also shows the monthly figure and the increase.
How do I work out the hike percentage between my old and new CTC?
Divide the new CTC by the old one, subtract 1 and multiply by 100. From 8.5 lakh to 11 lakh is 11 / 8.5 = 1.2941, so a 29.41% hike. Choose "The new salary" and type both figures.
What is a good salary hike percentage?
There is no single answer, but a hike below inflation is a pay cut in real terms. Compare your hike with the current consumer price inflation where you live; the calculator shows the real change and the break-even hike.
How much will my monthly salary increase with a 10% hike?
By a tenth of your current monthly salary before tax: ₹50,000 a month becomes ₹55,000, an increase of ₹5,000. Take-home pay rises by less, because tax and deductions also go up.
Does a pay rise beat inflation?
Only if the hike is higher than the inflation rate. A 3% rise with 5% inflation buys about 1.9% less than before; a 10% rise with 5% inflation buys about 4.8% more. Enter both rates to see the real change in money.
How much will my salary be in 5 years with a yearly hike?
It compounds: with 10% a year, 6 lakh becomes 6.6, 7.26, 7.99, 8.78 and 9.66 lakh over five years. The projection table shows each year, and the same figures in today's money after inflation.
Last reviewed by the A2Z.Tools team against the sources listed above.
