Salary Hike Calculator

Hike percentage = ((New Salary − Old Salary) / Old Salary) × 100. Example: old salary ₹6 lakh, new salary ₹7.2 lakh. Hike = (1,20,000 / 6,00,000) × 100 = 20%. Simple. The trap: many calculate against the new salary instead, which lowers the apparent hike. Stick with old salary as the denominator. If the company quotes "20% hike on CTC," check whether they mean gross CTC or fixed component — variable pay components can inflate CTC without raising your in-hand. The calculator gives you both perspectives.

New salary = Old salary × (1 + hike%/100). On a ₹50,000 monthly salary with 10% hike: 50000 × 1.10 = ₹55,000. Annually that's ₹6.6 lakh from ₹6 lakh — a ₹60,000 increase. Sounds great, but inflation often eats half of that. If inflation is 6%, your real raise is closer to 4%. The post-tax figure is what really matters. Also check if the hike is on basic, gross, or CTC — companies sometimes hike CTC by raising employer contributions, which barely changes your monthly bank credit. Always ask for in-hand impact.

Manually: subtract old salary from new, divide by old salary, multiply by 100. Example: old ₹45,000, new ₹52,000. Difference = ₹7,000. ₹7,000 / ₹45,000 = 0.1556. Multiply by 100 = 15.56%. That's your hike percentage. For annual figures, the math is identical — use annual numbers throughout. If the new salary includes a one-time joining bonus, exclude it; you only want the recurring component. Some companies also restructure components (more variable, less fixed) — recalculate based on guaranteed pay only for an honest hike figure.

Frame the conversation around your contributions and market data, but anchor it in inflation logic. "Inflation has been around 6% over the last year, and to maintain my purchasing power I'd need at least that much. Given my work on X, Y, Z, I'd like to discuss a hike of 12-15%." Bring data — salary benchmarks for your role from sites like AmbitionBox, Glassdoor, or LinkedIn. Inflation alone justifies a baseline raise; performance justifies more. Avoid emotional pleas. Keep the tone professional. Time the request right after a successful project, not during a slow quarter.

At minimum, your raise should match inflation just to maintain real purchasing power. If inflation is 6%, anything below 6% is a real-terms pay cut. To genuinely move ahead, you need 8-10% or more. Example: ₹10 lakh salary with 5% raise becomes ₹10.5 lakh — but at 6% inflation, that ₹10.5 lakh has the buying power of ₹9.91 lakh. So your "raise" was actually a 0.9% cut. Track inflation each year and benchmark your raise against it. The calculator can show real (inflation-adjusted) versus nominal raise figures clearly.

Calculate the difference, then express as a percentage of the old salary. Example: old ₹40,000 monthly, new ₹47,000 monthly. Difference = ₹7,000. Hike = (7000/40000) × 100 = 17.5%. Multiply by 12 if you want the annual rupee impact: ₹84,000 more per year. If your old salary had different components (basic, HRA, allowances), and the new offer restructures them, calculate hike on total fixed pay, not on individual components. The calculator handles old vs new directly. Always know the percentage and rupee figure both — recruiters tend to spotlight whichever one looks bigger.

No, they're different things. A bonus is a one-time payment (annual, performance, festival, retention) that doesn't change your fixed salary. A hike is a permanent increase to your monthly recurring pay. A 20% bonus is paid once; a 20% hike compounds for years and affects every future raise. If your CTC includes a 15% variable bonus, it's not guaranteed — it depends on company and individual performance. Companies sometimes blur the line, presenting bonuses as part of "total comp." Always separate fixed pay (your real income) from variable pay (uncertain) when evaluating offers.