Salary hike calculator
Three questions, one page: what a hike percentage does to your salary, what percentage a new offer really is, and what hike you need to reach a target. With compounding over several years and a comparison table.
Your numbers
Result
Adjust the figures and the result updates as you type.
How this is calculated
- New salary = current × (1 + hike ÷ 100). A 12% hike on ₹6,00,000 is ₹6,72,000.
- Hike percentage = (new − current) ÷ current × 100. Moving from ₹6,00,000 to ₹7,20,000 is a 20% hike.
- Hike needed for a target = (target − current) ÷ current × 100, as a single hike. The page also shows the equal yearly hike that reaches the target over the number of years you set: (target ÷ current)^(1 ÷ years) − 1.
- Compounding = current × (1 + hike ÷ 100)^years. Each year's hike applies to the previous year's salary, so five hikes of 12% give 76%, not 60%.
- Real hike = (1 + hike) ÷ (1 + inflation) − 1. A 12% hike with 5% inflation is a 6.7% rise in purchasing power, not 7%.
- The comparison table applies 5, 10, 15, 20 and 30% hikes to your current salary, for one year and for the years you set.
No rounding tricks: percentages are shown to one decimal and rupees to the nearest rupee. How companies decide the number is a different question; pay bands and increments for small companies covers it. In ZekoHR an increment is a dated salary revision on the employee record, so the next payroll run and the payslip pick it up without a spreadsheet edit.
Common questions
Should I calculate the hike on CTC or on in-hand?
Companies quote hikes on CTC, so compare offers on CTC. But check the in-hand separately: a 20% CTC hike that moves more money into variable pay, or pushes you past the ₹12 lakh tax rebate limit, can change the monthly credit by much less than 20%.
Why does a 12% hike for five years give 76% and not 60%?
Because each year's hike is applied to the already-raised salary. 1.12 to the power of five is 1.76. The same compounding is why a one-point difference in annual hike adds up to a large gap over a career.
What is a typical salary hike in India?
Compensation surveys from the large consultancies have put average annual increments in the 9 to 10% range in recent years, with wide variation by sector and performance; job changes often bring 20 to 30% or more. Treat any such figure as a reference, not a rule. The calculator does not assume one.
What is a real hike?
The rise in what the salary can buy, after inflation. It is (1 + hike) ÷ (1 + inflation) − 1, which is slightly less than simply subtracting the inflation rate. A hike below inflation is a pay cut in real terms even though the number went up.
How do I work out the hike needed for a target in a few years?
Choose the target mode, enter the target and the number of years. The page shows both the single hike that gets you there and the equal yearly hike that reaches it over those years, which is the years-th root of target ÷ current, minus one.