Salary Hike Calculator

What is a salary hike?

A salary hike (or increment) is an increase in your salary, usually expressed as a percentage of your current salary. In India, hikes are typically given during annual appraisals or when you switch jobs. For example, a 15% hike on a salary of ₹8 lakh means your new salary is ₹9.2 lakh—an increase of ₹1.2 lakh. Knowing your new salary and the exact increment amount helps you plan your budget, loan eligibility, and savings. This calculator takes your current salary (annual) and the hike percentage and shows your new salary and the increase in rupees. You can use it for CTC (cost to company), gross salary, or any annual figure on which your hike is applied. It is useful before appraisals to model different hike scenarios or when comparing job offers.

Salary hikes are often discussed as a percentage; the actual impact on take-home depends on tax slabs and deductions. This tool gives you the gross/CTC impact. Use it together with our Income Tax Calculator to see post-tax change if needed.

Formula

New salary = Current salary × (1 + hike% / 100). Increase amount = New salary − Current salary. For example, current = ₹8,00,000, hike = 15%. New salary = 8,00,000 × 1.15 = ₹9,20,000. Increase = ₹1,20,000. The calculator uses this simple formula. You can enter current salary in rupees per year (lakh or full amount) and any hike percentage (e.g. 10, 15, 25). Result is rounded to the nearest rupee. Use it for single hike; for multiple years of compounding hikes, you would apply the formula year by year.

Example calculation

Your current annual salary is ₹8 lakh and you are offered a 15% hike. New salary = 8,00,000 × 1.15 = ₹9,20,000. Your increase is ₹1,20,000 per year (or ₹10,000 per month before tax). If you get a 25% hike (e.g. on job change), new salary = ₹10,00,000 and increase = ₹2,00,000. Use the calculator above with your current salary and hike percentage to get your new salary and increment. You can try different hike % to see what you need to reach a target salary (e.g. "What hike do I need to go from 8L to 10L?"—that would be 25%.)

Benefits of Using This Calculator

A salary hike calculator helps you see the exact new salary and increment for any hike percentage, so you can plan your finances after an appraisal or job change. You can model different hike scenarios (e.g. 10% vs 15% vs 20%) and see the impact on annual and monthly income. Use it to negotiate (e.g. "A 20% hike would take me to ₹9.6L") or to set expectations. The tool is free and requires no sign-up. It is useful for both employees and HR to quickly compute new salary from a hike percentage.

Knowing your new salary also helps you update your loan eligibility (use our Loan Eligibility Calculator with the new income) and budget. Remember that take-home will depend on tax and other deductions; this calculator shows gross/CTC impact only.

How to Use This Calculator

Enter your current salary in rupees per year (e.g. 800000 for 8 lakh) and the hike percentage (e.g. 15 for 15%). The calculator shows your new salary and the increase amount in rupees. Use the figure that your hike applies to—usually CTC or gross annual. Try different hike percentages to see what new salary you would get. If you have a target new salary in mind, you can work backward: (Target / Current) − 1 gives the required hike percentage (e.g. to go from 8L to 10L, hike = (10/8) − 1 = 25%).

This calculator is for a one-time hike. For multiple years of successive hikes, apply the calculator each year with the new salary as the next "current" salary. For take-home impact, use our Income Tax Calculator with the new salary.

FAQs