Salary Hike Calculator
Switch between the two questions people actually ask at appraisal time: what a given hike percentage does to your salary, and what percentage a jump from one CTC to another really works out to.
Both directions, one calculator
At appraisal time there are really only two questions, and they run in opposite directions:
- "I have been offered a 12% hike — what does that make my CTC?" Pick the first option and enter the percentage.
- "My CTC went from ₹8.5 lakh to ₹9.7 lakh — what percentage is that?" Pick the second option and enter both figures.
The arithmetic is simple in both directions, which is exactly why it is worth getting right rather than guessing:
New CTC = current CTC × (1 + hike% ÷ 100)
Hike % = (new CTC − current CTC) ÷ current CTC × 100
A hike on CTC is not a hike in your bank balance
This is the part that catches people out every year. Your CTC includes components you never receive as monthly cash — the employer's provident fund contribution and the gratuity provision — and the extra income is taxed at your marginal rate, which is the highest rate you pay, not your average one.
So a 10% rise in CTC lands as something less than 10% more in hand, and the gap widens as you move up the slabs. To see the actual take-home effect, put both the old and new figures through the salary calculator, and check which tax regime suits the new number with the income tax calculator. If the raise pushes you into a higher slab, the HRA exemption calculator is worth a look too.
Judge a hike against the alternatives, not in isolation
A percentage on its own means very little. The chart in the result panel plots what your CTC becomes across hikes from 0% to 30%, with your figure marked, so you can see the shape of the trade rather than anchoring on one number in an offer letter.
Two comparisons worth making before you accept anything:
- Against inflation. A hike below the inflation rate is a real-terms pay cut, however it is presented. The inflation calculator shows what your current salary needs to become just to stand still.
- Against compounding. Raises compound. Two years of 8% beats one year of 15% followed by nothing, and the gap keeps widening. The step-up SIP calculator shows the same mechanic applied to investing — a contribution that rises annually ends up far ahead of a flat one.
Quick reference
| Current CTC | +10% | +15% | +20% | +30% |
|---|---|---|---|---|
| ₹5,00,000 | ₹5,50,000 | ₹5,75,000 | ₹6,00,000 | ₹6,50,000 |
| ₹8,00,000 | ₹8,80,000 | ₹9,20,000 | ₹9,60,000 | ₹10,40,000 |
| ₹12,00,000 | ₹13,20,000 | ₹13,80,000 | ₹14,40,000 | ₹15,60,000 |
| ₹20,00,000 | ₹22,00,000 | ₹23,00,000 | ₹24,00,000 | ₹26,00,000 |