Salary Hike Calculator
Work out your hike percentage, the new salary, and what the raise is worth after tax.
Two questions come up at every appraisal and every offer: what percentage is this, and what is it actually worth? This calculator answers both — the hike percentage between two salaries, or the new salary from a percentage — and shows how much of the increase survives income tax.
Current and new salary
Result
Fill in the fields above and your result will appear here.
What the Salary Hike Calculator does
A hike percentage is a simple ratio, but it is easy to compare the wrong things. Offers are quoted in CTC while pay cheques arrive as in-hand, and the two do not move together. A raise that arrives entirely as variable pay changes your CTC without changing your monthly credit at all.
This tool works on whichever figure you give it — use CTC to compare offers as they were quoted, and in-hand to see what changes in your bank account. The after-tax option shows the part of the increase you actually keep, which matters when a raise crosses a slab boundary.
How to use this tool
- Choose whether you know both salaries (to find the percentage) or a percentage (to find the new salary).
- Enter your current annual figure. Use CTC for both fields or in-hand for both — never mix the two.
- Enter the new salary, or the hike percentage you have been offered or are targeting.
- Leave the after-tax option ticked to see how much of the raise survives income tax, and pick the regime you are on.
- Compare the monthly increase against the actual change in your expenses — that is the number that decides whether a switch is worth it.
Formula and method
Hike % = (New salary − Current salary) ÷ Current salary × 100
New salary = Current salary × (1 + Hike % ÷ 100)
After-tax gain = Increase − (Tax on new salary − Tax on current salary)
The after-tax figure applies the FY 2026-27 slabs to both salaries and takes the difference. It assumes the entire salary is taxable employment income after the standard deduction, which is the right approximation for comparing two offers.
Worked example
Example: ₹8,00,000 to ₹10,00,000
| Current CTC | ₹8,00,000 |
| New CTC | ₹10,00,000 |
| Increase | ₹2,00,000 |
| Hike percentage | 25.0% |
| Monthly increase in CTC | ₹16,667 |
Under the new regime both salaries fall within the range covered by the 87A rebate structure, so the after-tax gain stays close to the headline figure. The same ₹2,00,000 raise on a base of ₹22,00,000 would lose 30% plus cess to tax, leaving roughly ₹1,38,000.
What your result means
8–12% is the range most Indian employers budget for an annual increment, so anything in that band is a normal appraisal outcome rather than a signal about your performance relative to the market.
20–40% is the range associated with changing jobs. If an internal raise reaches that level it usually reflects a promotion or a counter-offer.
A very large percentage deserves scrutiny rather than celebration. Check whether the increase sits in fixed pay, in variable pay, or in a one-time joining bonus that will not repeat next year.
Important considerations
- Compare like with like. CTC to CTC, or in-hand to in-hand — a CTC hike that arrives as employer PF or a gratuity provision does not increase your monthly credit.
- A joining bonus inflates only the first year. Strip it out before computing the percentage, or you will be disappointed at the next appraisal.
- Inflation erodes a raise. A 6% increment when prices rise 6% leaves your purchasing power unchanged; the calculator reports the nominal figure only.
- A hike that comes with a longer commute, a costlier city or a lost bonus is not a hike in real terms — the job switch break-even calculator handles those.
- Percentages compound. Two consecutive 10% increments are a 21% rise, not 20%.
Limitations of this tool
- The after-tax estimate treats the salary as fully taxable employment income after the standard deduction, and ignores HRA exemption, 80C investments and other deductions that would change the comparison under the old regime.
- It does not account for changes in the salary structure between the two jobs — a different basic percentage, PF treatment or variable share can change take-home even when CTC is identical.
Frequently asked questions
What is a good salary hike in India?
Internal annual increments generally land between 8% and 12%, with high performers reaching 15%. A job change typically delivers 20–40%. What counts as good depends on your current salary relative to the market — a 30% hike on an underpaid base may still leave you below market rate.
How do I calculate hike percentage manually?
Subtract your current salary from the new one, divide by the current salary, and multiply by 100. From ₹50,000 to ₹60,000: (60,000 − 50,000) ÷ 50,000 × 100 = 20%.
Should I calculate hike on CTC or in-hand?
Use CTC when comparing offers as they were quoted, since that is the language recruiters use. Use in-hand when deciding whether you can afford a move, since that is what pays your rent. Problems only arise when the two are mixed in one comparison.
Why does a 30% hike not feel like 30% more money?
Three reasons: tax takes a larger share of the increment than of your existing salary if it crosses a slab, part of the increase may sit in variable or retirement components, and your costs usually rise alongside a new role. The after-tax line in this tool addresses the first of those.