Hike Calculator
| Hike % | New Annual (₹) | Monthly (₹) | Increase (₹/yr) |
What This Tool Does
This calculator works out your new salary from an expected hike percentage, or works out the hike percentage from a new salary figure — whichever direction you're starting from. Enter your current salary and either number, and it fills in the rest instantly.
You can also use this LTP calculator.
How It's Calculated
The core formula is straightforward:
Hike Percentage = ((New Salary − Current Salary) ÷ Current Salary) × 100
To go the other way — finding the new salary from a target percentage:
New Salary = Current Salary × (1 + Hike Percentage ÷ 100)
Worked example: Priya's current annual salary is ₹5,40,000. After her review, it moves to ₹6,21,000.
- Difference: 6,21,000 − 5,40,000 = ₹81,000
- Percentage: (81,000 ÷ 5,40,000) × 100 = 15%
If instead Priya knew she was getting a 15% hike and wanted her new figure, she'd calculate 5,40,000 × 1.15 = ₹6,21,000 — same answer, worked in reverse.
Edge Cases and Special Rules
- CTC vs. gross vs. in-hand: A hike quoted on CTC (Cost to Company) isn't the same as a hike in take-home pay. CTC includes components like employer PF contribution, gratuity, and insurance that don't land in your bank account, so a 20% CTC hike often translates to a smaller in-hand increase.
- Rounding: Percentages are typically shown to one or two decimal places, since HR communications often round to the nearest whole number.
- Negative hikes: The same formula works for a pay cut — the result will simply be negative, indicating a percentage decrease rather than an increase.
- Monthly vs. annual figures: Make sure both salary figures use the same period (both monthly or both annual) before calculating, or the percentage will be meaningless.
Types of Salary Hikes in India
Hikes aren't all the same kind of increase, and knowing which one you're getting helps set expectations:
- Annual appraisal hike — a routine increase tied to yearly performance cycles, given broadly across a team or company.
- Performance hike — an above-average increase for employees who exceeded targets, separate from the standard cycle.
- Promotion hike — accompanies a change in designation or role, usually larger than a standard appraisal.
- Market correction — companies adjust pay when it falls behind market rates, often to reduce attrition risk.
- Job-switch hike — offered by a new employer, typically calculated against your current CTC and industry norms.
- Retention offer — a counter-hike made to match or beat a competing offer when a company wants to keep an employee.
Who Uses This
- Employees checking their new salary after an appraisal letter
- Job seekers comparing an offer's hike percentage against their current pay
- Professionals preparing numbers before a salary negotiation
- HR teams cross-checking increment calculations across a team
Hike Percentage vs. CTC Increase
These get mixed up often. Hike percentage, as calculated here, compares two salary figures directly. CTC increase specifically refers to the change in your total cost-to-company package, which includes non-cash and deferred components. A 25% CTC hike can still mean a much smaller jump in what you actually take home each month — always check which figure a hike is quoted against.
FAQ
How is a salary hike calculated?
By finding the difference between new and current salary, dividing by current salary, and multiplying by 100.
How do I calculate a specific hike, like 10%, 20%, or 30%?
Multiply your current salary by the percentage (as a decimal) and add that to your current salary — for 20%, that's current salary × 1.20.
Does a CTC hike mean the same increase in-hand?
Not usually — CTC includes components like PF and gratuity that don't affect take-home pay directly.
Can this calculator handle a pay cut?
Yes — enter the lower new salary and it will show a negative percentage.
Is there a "good" hike percentage in India?
It varies widely by industry, role, and hike type, so there's no single fixed benchmark to compare against.
Try It Above
Enter your current salary and either your hike percentage or new salary amount in the calculator above to get an instant result. Figures are for general estimation only — actual take-home pay depends on your specific salary structure, deductions, and tax slab.