Work out your new CTC from a hike percentage, back-calculate the hike % you actually got, project a few years of compounding hikes, or check whether your raise actually beat inflation.
| Year | CTC | Increase from Previous Year |
|---|
Key Takeaways
- A "hike" in India is almost always quoted on CTC, not take-home pay. Your actual in-hand increase is usually smaller than the headline percentage once PF, taxes, and any variable-pay structure are factored in.
- A nominal hike below the inflation rate is a real pay cut in purchasing power, even though the number on your payslip went up — a 5% hike during 6% inflation means you can afford slightly less than before, not more.
- Compounding hikes add up faster than they feel year to year. A steady 10% annual hike roughly doubles your CTC in about 7–8 years, not 10, because each year's hike is calculated on an already-larger base.
What This Salary Hike Calculator Does
This calculator answers the four salary-hike questions that come up most often around appraisal season in India. New CTC from Hike % takes your current CTC and a hike percentage and gives you the new annual figure and the absolute increase. What % Hike Did I Get? works backward from your old and new CTC to tell you the exact percentage, useful when HR gives you a new number without stating the percentage directly. Multi-Year Projection compounds a steady annual hike rate forward several years, so you can see roughly where your CTC could land if raises stay consistent. Real Hike vs Inflation answers whether your raise actually increased your purchasing power once inflation is accounted for, which the headline hike percentage alone doesn't tell you.
Everything runs entirely in your browser. No salary figure you enter is sent to a server, logged, or stored anywhere — close the tab and it's gone. There's no signup, no email wall, and no ads inside the calculator itself. This tool works in CTC terms; for your actual take-home change, pair it with the site's Income Tax Calculator.
How to Use This Salary Hike Calculator
1. New CTC from Hike %
- Enter your Current CTC.
- Enter the Hike Percentage offered.
- Read your new CTC and the absolute increase.
2. What % Hike Did I Get?
- Enter your Old CTC.
- Enter your New CTC.
- Read the exact hike percentage.
3. Multi-Year Projection
- Enter your Current CTC.
- Enter an Expected Annual Hike and Number of Years.
- View the year-wise projection table.
4. Real Hike vs Inflation
- Enter your Hike percentage.
- Enter the current Inflation Rate.
- See your real, inflation-adjusted hike.
The Salary Hike Formulas, Explained
- New CTC: New CTC = Old CTC × (1 + Hike% / 100)
- Hike Percentage (reverse): Hike% = [(New CTC − Old CTC) / Old CTC] × 100
- Multi-Year Projection: CTC after n years = Current CTC × (1 + Hike%/100)n
- Real Hike (inflation-adjusted): Real Hike% = [(1 + Hike%/100) / (1 + Inflation%/100) − 1] × 100
Worked example (Real Hike): Hike = 10%, Inflation = 6%.
- (1 + 0.10) / (1 + 0.06) = 1.10 / 1.06 ≈ 1.0377
- Real Hike = (1.0377 − 1) × 100 ≈ 3.77%
This is why simply subtracting inflation from the hike (10% − 6% = 4%) gives a close but not quite exact answer — the correct calculation divides the two growth factors rather than subtracting the percentages directly, though the difference is small at typical hike and inflation levels.
Hike Percentage Reference Table
New CTC for a INR 6,00,000 base at common hike percentages, for a quick lookup.
| Hike % | Increase | New CTC |
|---|---|---|
| 5% | INR 30,000 | INR 6,30,000 |
| 10% | INR 60,000 | INR 6,60,000 |
| 15% | INR 90,000 | INR 6,90,000 |
| 20% | INR 1,20,000 | INR 7,20,000 |
| 25% | INR 1,50,000 | INR 7,50,000 |
Quick Definitions
CTC (Cost to Company) is the total annual amount an employer spends on an employee, including base salary, allowances, employer PF contribution, gratuity, and any bonuses or perks — it's a bigger figure than take-home pay, since deductions and some components never reach the employee's bank account directly. Real hike is a salary increase adjusted for inflation, showing the actual change in purchasing power rather than just the nominal rupee or percentage increase.
Frequently Asked Questions
The hike percentage almost always applies to CTC, which includes components like employer PF contribution, gratuity, and sometimes variable pay that don't show up in your monthly bank credit. Moving into a higher tax slab because of the raise can also reduce the in-hand increase further.
In real (purchasing-power) terms, yes. Your rupee income went up, but prices rose faster, so the same salary buys slightly less than it did before the hike. The Real Hike vs Inflation mode on this calculator shows this precisely.
This varies significantly by year, industry, role, and company performance, so there's no single fixed benchmark that stays accurate over time. A hike that comfortably beats current inflation and matches or exceeds your industry's typical range for the year is generally considered solid; check recent salary trend surveys for your specific sector for a current benchmark.
The math is identical — it's still a percentage or absolute increase on your previous CTC. Companies sometimes track "promotion hike" and "annual increment" as separate line items internally, but from a salary-calculation standpoint, both just move your CTC from an old figure to a new one.
It's a simplification for planning purposes — real annual hikes vary based on your performance, company results, and market conditions. Treat the projection as a rough "what if this rate held steady" scenario, not a guarantee or a company commitment.
No. Every calculation runs locally in your browser using JavaScript; nothing you enter is transmitted to any server, logged, or saved once you close or refresh the page.