Salary Hike Calculator: Hike % and New CTC (Free)
Hike % = (new CTC − old CTC) ÷ old CTC × 100. Work out your new CTC from a hike, and a rough monthly change, with a free percentage calculator.
Published · 4 min read
To calculate your salary hike percentage, subtract your old CTC from your new CTC, divide by the old CTC and multiply by 100. Going from ₹8,00,000 to ₹9,00,000 is a 12.5% hike. To go the other way, a 10% hike on ₹6,50,000 gives a new CTC of ₹7,15,000. The free percentage calculator works as a salary hike calculator for both, and the answer updates as you type.
In India, appraisal letters usually land between March and May, ahead of the new financial year in April. The letter tends to give either a percentage or a new CTC, rarely both, and almost never the change to your monthly in-hand pay. Here's how to fill in the gaps.
Salary hike percentage from old and new CTC
Formula: (new − old) ÷ old × 100
| Old CTC | New CTC | Hike |
|---|---|---|
| ₹4,80,000 | ₹5,28,000 | 10% |
| ₹8,00,000 | ₹9,00,000 | 12.5% |
| ₹12,00,000 | ₹13,44,000 | 12% |
| $60,000 | $63,000 | 5% |
In the calculator, use the third line, Percentage change (increase or decrease). Type the old CTC in From and the new one in to. For ₹8,00,000 to ₹9,00,000 it shows "An increase of 12.5% (+100,000)", so you see the rupee difference too (grouped the international way). You can type numbers with Indian commas, like 8,00,000.
Always divide by the old salary. Dividing by the new one gives a smaller, wrong figure (1,00,000 ÷ 9,00,000 is 11.1%). For more on why the base matters, see the guide to percentage increase and decrease.
New CTC from a hike percentage
Formula: new CTC = old CTC × (1 + hike ÷ 100)
Example: 10% on ₹6,50,000.
- Use the first line of the calculator, What is X% of Y? Type 10 and 650000. It shows 65,000.
- Add that to your old CTC: 6,50,000 + 65,000 = ₹7,15,000.
Or multiply in one go: 6,50,000 × 1.10 = ₹7,15,000.
What changes in your monthly pay?
CTC is the total cost to the company for a year. It usually includes items you don't receive as monthly salary, such as the employer's PF contribution, gratuity, insurance and any variable pay or bonus. So a hike in CTC doesn't flow one-for-one into your bank account.
A rough way to estimate:
- Divide the CTC increase by 12. A ₹65,000 hike is about ₹5,417 a month before deductions.
- Check what part is fixed. If the hike went into variable pay, you only see it when the bonus is paid, and possibly not in full.
- Allow for deductions. Your own PF contribution (commonly 12% of basic pay) and income tax come out of the increase too. Someone in a higher tax bracket keeps less of each extra rupee.
So the monthly in-hand rise is usually noticeably smaller than the CTC increase ÷ 12. For an exact figure, compare the "fixed monthly gross" and deductions on your old and new salary breakup, or your payslips before and after. Tax rules change each budget, so don't rely on a rule of thumb for the tax part.
Comparing a hike with a job offer
Switching jobs? The same formula tells you how a new offer compares. If your current CTC is ₹12,00,000 and the offer is ₹15,00,000, that's a 25% jump. But compare like with like:
- Fixed pay vs fixed pay (strip out joining bonuses, which are one-time).
- Variable pay at a realistic payout, not the maximum.
- Notice period: if you'll serve 60 or 90 days, that's months at your old salary before the new one starts.
Hikes over several years
Hikes compound. Three years of 8% hikes is not 24%:
- Year 1: 1.08
- Year 2: 1.08 × 1.08 = 1.1664
- Year 3: 1.1664 × 1.08 = 1.2597
That's a 25.97% total increase. Going the other way, if prices have also risen 6% a year, your real gain is much smaller than the hike suggests. Work out each year's change with the calculator and multiply the (1 + hike) factors together.
Planning with the extra money
A hike is a good moment to raise savings before spending catches up. Two common moves:
- Split it deliberately. For example, save half the monthly increase and spend the rest. The 50/30/20 budget rule gives a simple framework.
- Check a loan before you commit. If the raise tempts you towards a car or home loan, run the numbers in the free EMI calculator first and make sure the EMI fits your new in-hand pay, not your CTC. The EMI guide explains how the monthly amount is worked out.
Work out your hike now
Type your old and new CTC into the third line of the free percentage calculator to see your hike percentage and the rupee difference. It's free, needs no sign-up and runs on your device, so your salary numbers stay with you.
Frequently asked questions
- How do I calculate my salary hike percentage?
- Subtract your old CTC from the new one, divide by the old CTC and multiply by 100. ₹8,00,000 to ₹9,00,000 is a 12.5% hike.
- How do I calculate my new salary after a 10% hike?
- Multiply your current CTC by 1.10. ₹6,50,000 × 1.10 = ₹7,15,000.
- Why is my in-hand salary increase smaller than my hike?
- CTC includes employer PF, gratuity, insurance and variable pay, and your own PF and income tax come out of the increase. Compare your old and new salary breakups for the real monthly change.
- Is a 10% hike good?
- It depends on your industry, role, performance and inflation. Compare it with the rise in your living costs; if prices rose 6%, a 10% hike is a real gain of about 4%.
- What hike do three 8% raises add up to?
- About 25.97%, not 24%, because each raise is calculated on the already-raised salary.
Calculators
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