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Salary Hike Calculator

Find your new salary or hike percentage, the monthly increase, and the real hike after inflation.

By Nitin Raturi · Last reviewed

Your salary

How to use the Salary Hike Calculator

Work out a new salary or hike percentage, and what it is worth after inflation.

  1. Choose whether you know the hike percentage or the new salary.
  2. Enter your current salary for a year.
  3. Enter the hike or the new salary.
  4. Enter an inflation assumption, or 0.
  5. Read the new salary, the monthly increase and the real hike.

Good to know

  • Keep both salaries on the same basis: CTC, gross or in-hand.
  • A hike equal to inflation leaves your buying power unchanged.

Yearly figures on one basis: CTC, gross or in-hand. Your figures stay in this browser.

What you know

What you know

Choose whether you have a hike percentage or the new salary from an offer or revision letter.

How to fill it in

  • Hike %: find the new salary.
  • New salary: find the hike percentage.

Current salary

What you earn now, for a year. Use the same measure as the new salary: CTC, gross or in-hand.

How to fill it in

  • Enter rupees a year: 1200000, 12 lakh or 12L.
  • Allowed range: ₹1 to ₹10,00,00,00,000.

Example

A 10% hike on ₹12,00,000 adds ₹10,000 a month.

Keep in mind: Comparing CTC with in-hand pay gives a misleading hike.

Hike

The increase as a percentage of your current salary.

How to fill it in

  • Enter a percentage from −99 to 1,000.
  • A negative figure is a pay cut.

Example

10% on ₹12,00,000 gives ₹13,20,000.

Inflation

How much prices rise over the same year. The real hike tells you how much more your new salary can buy.

How to fill it in

  • Enter your own assumption as a percentage, from −50 to 100.
  • Enter 0 to ignore inflation.

Example

With no hike and 5% inflation, the real change is -4.76%.

Keep in mind: Future inflation is unknown. Your own costs can rise faster or slower than any average.

Your assumption

New salary

₹13,20,000

₹12,00,000 to ₹13,20,000 is a 10% change, ₹10,000 a month. After 5% inflation it is worth ₹12,57,143 in today's prices, a real change of 4.76%.

New salary
₹13,20,000
Increase a year
₹1,20,000
Increase a month
₹10,000
Hike
10%
Real hike after inflation
4.76%
New salary in today's prices
₹12,57,143

Inflation is your assumption for the same year. The real hike divides by the price rise, which is more accurate than subtracting inflation. Taxes and deductions are not included.

ChangelogHow we test this calculatorEmbed this calculator

How this calculator works

  1. Step 1Current salary₹12,00,000What you earn now, for a year.
  2. Step 2New salary₹13,20,000After a 10% hike.
  3. Step 3Inflation5%Your assumption for the same year.
  4. Step 4Real hike4.76%How much more the new salary can buy.

A hike is the increase divided by your current salary. Enter a percentage to find the new salary, or a new salary from an offer letter to find the percentage.

Prices also rise. Dividing the new salary by the price rise gives its value in today’s prices, and the real hike compares that with what you earn now.

Worked example: a 10% hike

New salary and real hike
New salary
current × (1 + hike)
Real hike
(1 + hike) ÷ (1 + inflation) − 1
  • SCurrent salary ₹12,00,000
  • hHike 10%
  • iInflation 5%
  1. New salary₹12,00,000 × 1.1₹13,20,000
  2. Increase a month₹1,20,000 ÷ 12₹10,000
  3. In today's prices₹13,20,000 ÷ 1.05₹12,57,143
  4. Real hike1.1 ÷ 1.05 − 14.76%

The 10% hike adds ₹10,000 a month. After 5% inflation, your buying power rises by 4.76%, not the 5% that subtracting suggests.

Real hike at different nominal hikes

  • 0% hike-4.76% real
  • 5% hike0% real
  • 8% hike2.86% real
  • 10% hike4.76% real
  • 15% hike9.52% real
Real hike at 5% inflation

A hike equal to inflation, 5%, gives a real change of 0%. No hike in the same year is a real cut of 4.76%.

Hike percentage or new salary

  • You know the hike₹13,20,00010% on ₹12,00,000.
  • You know the new salary25%₹15,00,000 against ₹12,00,000.

When you switch, the calculator keeps the current answer, so you can see the same change both ways.

Read the result

The headline is the new salary or the hike; the table adds the monthly increase and the real hike.

Real hike is the percentage change in what your salary can buy. A negative real hike means prices rose faster than your pay.

In today’s prices shows the new salary divided by the price rise, so you can compare it directly with what you earn now.

Assumptions and limits

  • TaxA hike can move you into a higher slab; take-home pay is not worked out here.
  • InflationYour assumption. Your own costs may rise faster or slower.
  • Same basisBoth salaries must be CTC, gross or in-hand, not a mix.
  • One yearInflation covers the same year as the hike.

For take-home pay after tax and PF, use the in-hand salary calculator with the new salary.

A hike is measured on gross pay. Take-home pay and buying power are the next questions.

To see the new monthly take-home from a CTC, use the in-hand salary calculator. The inflation calculator shows how prices eat into a raise, and the salary calculator converts pay between periods.

Common mistakes

  • Mistake: Comparing a new CTC with your current in-hand pay.

    Instead: Use the same measure for both salaries.

  • Mistake: Subtracting inflation from the hike.

    Instead: Divide by the price rise; the shortcut overstates the real gain.

  • Mistake: Counting a one-time joining bonus as a hike.

    Instead: Compare recurring yearly pay only.

  • Mistake: Treating variable pay as certain.

    Instead: Run the calculation with and without it.

Checking the method

Every golden case is rebuilt by deflating both salaries with a price index, and two OpenStax examples are reproduced.

Percent change follows OpenStax Prealgebra 2e; the real value divides by a price index as in OpenStax Principles of Economics 3e. An independent script checks every case exactly.

Read how we test our calculators, or browse more money calculators.

Frequently asked questions

How do I calculate a salary hike percentage?

Divide the increase by your current salary and multiply by 100. ₹15,00,000 against ₹12,00,000 is a 25% hike.

How do I find my new salary from a hike?

Multiply your current salary by 1 plus the hike. 10% on ₹12,00,000 gives ₹13,20,000, or ₹10,000 more a month.

What is a real hike?

The hike after allowing for price rises: (1 + hike) ÷ (1 + inflation) − 1. A 10% hike at 5% inflation is 4.76% real.

Why not just subtract inflation?

It is a shortcut that overstates the real gain. Here it gives 5% instead of 4.76%; the gap grows with bigger numbers.

Should I use CTC or in-hand salary?

Either, as long as both salaries use the same measure. Mixing them gives a misleading hike.

Does this include income tax?

No. A hike can change your tax; use the in-hand salary calculator for take-home pay.

Sources and methodology

The formulas are standard time-value-of-money results. We check every figure against golden values worked out independently, by closed form and by month-by-month simulation; see the methodology.

Written and maintained by Nitin Raturi, a software engineer (about the author). Last reviewed 3 Nov 2026; next review due by . Found an error? Tell us.

Changelog

  • : Initial release.