Salary Hike Percentage Calculator
Compare your old and new salary. See the exact percentage, the rupee difference, and what it means.
Example: ₹10 lakh → ₹12 lakh
Your calculation
(₹12,00,000 − ₹10,00,000) ÷ ₹10,00,000 × 100 = 20%
| Salary component | Old salary | New salary |
|---|---|---|
| Monthly CTC | ₹83,333 | ₹1,00,000 |
| Employer PF · in CTC | ₹4,000 | ₹4,800 |
| Gratuity · in CTC | ₹1,603 | ₹1,924 |
| Gross cash salary | ₹77,730 | ₹93,276 |
| Employee PF | ₹4,000 | ₹4,800 |
| Professional tax | ₹200 | ₹200 |
| Estimated income tax | ₹0 | ₹0 |
| Estimated take-home | ₹73,530 | ₹88,276 |
Optional take-home assumptions
Historical preset: FY 2025–26 · AY 2026–27, resident salaried new regime. This is not a current-year tax recommendation. Employer PF and gratuity are removed from CTC before estimating tax on gross cash salary. Variable pay and special-rate income are excluded. Estimates stop above ₹50 lakh gross salary.
Defaults: basic pay 40% of CTC, PF 12% of basic and ₹2,400 annual professional tax. PF caps and state-specific rules are not modeled.
Income Tax Department reference ↗The CTC percentage is exact. Take-home is an illustration, not your payslip. Amounts shown are rounded to the nearest rupee.
What this hike means
You gain ₹16,667 in monthly CTC. Check how much is guaranteed fixed pay, when it takes effect, and whether variable pay or benefits have changed.
Read the offer checklistGoals That Can Be Achieved (20% Hike)
Based on your monthly take-home increment ( saving 100% · ₹14,746/month), here is what you can achieve:
✓ Achievable · up to 5 years⚡ Long-term · 5–10 years🎯 Need Appraisal · over 10 years
Tech & Gadget
Mobile Phone
Valuation₹15,000
Time to save:2 months (0.2 yrs)
✓ Achievable GoalDaily Commute
Motorcycle
Valuation₹1,50,000
Time to save:11 months (0.9 yrs)
✓ Achievable GoalPremium Touring
Luxury Bike
Valuation₹5,00,000
Time to save:34 months (2.8 yrs)
✓ Achievable GoalFamily Vehicle
Car
Valuation₹8,00,000
Time to save:55 months (4.6 yrs)
✓ Achievable GoalExecutive Sedan / SUV
Luxury Car
Valuation₹25,00,000
Time to save:170 months (14.2 yrs)
🎯 Need AppraisalStarter Home / Flat
Apartment
Valuation₹50,00,000
Time to save:340 months (28.3 yrs)
🎯 Need AppraisalVilla / Premium Property
Luxury House
Valuation₹1,50,00,000
Time to save:1018 months (84.8 yrs)
🎯 Need AppraisalFor detailed saving potential, tax deductions, and take-home milestone planning, compute your in-hand salary: In-Hand Salary Calculator
Realistic purchase valuations based on market benchmarks (Mobile Phone: ₹15,000, Motorcycle: ₹1,50,000, Luxury Bike: ₹5,00,000, Car: ₹8,00,000, Luxury Car: ₹25,00,000, Apartment: ₹50,00,000, Luxury House: ₹1,50,00,000). Illustrative estimation only; assumes dedicating the selected monthly savings starting from zero, without accounting for loan interest, depreciation, or investment compounding.
A clear percentage. A fuller picture. Exact salary arithmetic first, optional take-home estimates second. No invented industry averages or salary rankings.
See the formulaTHE RIGHT TOOL FOR THE QUESTION
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THE NUMBERS, EXPLAINED
Understanding your salary hike percentage
A practical guide to the formula, your salary structure, and a more informed offer comparison.
01
Salary hike percentage formula
A salary hike percentage measures the increase relative to your old salary. It is not the increase divided by your new salary. Use matching periods and matching pay components for a meaningful result.
THE PERCENTAGE CHANGE FORMULA
Hike % = ((New salary − Old salary) ÷ Old salary) × 100Annual difference = New annual CTC − Old annual CTCMonthly CTC difference = Annual difference ÷ 12For the salary scenario loaded with this page, ₹10,00,000 becomes ₹12,00,000: a 20% change. The annual difference is ₹2,00,000 and the monthly CTC difference is approximately ₹16,667.
This guide example reflects the page’s initial or shared-link values. Your live result above updates when you calculate.
02
Worked examples and pay cuts
Here are salary changes on the same annual basis. A negative result means a decrease; it is not a calculation error.
| Old annual CTC | New annual CTC | Annual difference | Change |
|---|---|---|---|
| ₹5,00,000 | ₹6,00,000 | ₹1,00,000 | 20% |
| ₹8,00,000 | ₹10,00,000 | ₹2,00,000 | 25% |
| ₹10,00,000 | ₹11,50,000 | ₹1,50,000 | 15% |
| ₹12,00,000 | ₹14,40,000 | ₹2,40,000 | 20% |
| ₹10,00,000 | ₹10,00,000 | ₹0 | 0% |
| ₹10,00,000 | ₹9,00,000 | -₹1,00,000 | -10% |
A 20% raise followed by a 20% cut does not return you to the starting salary. ₹10 lakh → ₹12 lakh → ₹9.6 lakh, because the second percentage uses a different base.
03
How to use this calculator
1
Choose the same period
Select Annual CTC or Monthly CTC. Enter both salaries in rupees-₹10 lakh means 1000000, not 10.
2
Compare old and new
Calculate the exact percentage and rupee difference. A pay cut and an unchanged salary are both supported.
3
Read beyond the percentage
Switch monthly/annual views, check the optional assumptions, and review the fixed-pay and benefit differences.
Changing the input period converts the entered values; it does not reinterpret a monthly value as an annual one. Quick examples are annual CTC. Result links include annualized salary values, but not custom deduction assumptions.
04
CTC, fixed pay and take-home
CTC is your employer’s total compensation cost, not necessarily money deposited into your account. Comparing an old fixed salary against a new total CTC can exaggerate a hike.
Exact salary comparison
The percentage and CTC difference use only your inputs. Compare CTC with CTC, fixed pay with fixed pay, or monthly gross pay with monthly gross pay.
Optional take-home illustration
The deduction model assumes CTC. Employer PF and gratuity are part of that CTC; employee PF and tax can reduce bank credits. Ignore the estimate if your inputs are fixed pay or net salary.
The model is explicitly labeled FY 2025–26 / AY 2026–27, not silently presented as the latest tax year. Individual exemptions, variable pay, PF caps, state-specific professional tax, and special-rate income are not fully modeled. The exact hike calculation does not depend on tax rules.
05
Is the offer right for you?
A percentage alone cannot say whether an appraisal or job offer is good. Use the result to frame questions, not as an industry ranking.
- Guaranteed pay. Compare the fixed component separately from targets, joining bonuses and conditional payouts.
- Salary structure. Request the breakup of basic pay, employer contributions, gratuity and recurring allowances.
- Timing and conditions. Confirm the effective date, probation terms, bonus eligibility and repayment clauses.
- Costs and responsibilities. Consider commuting or relocation costs, hours, role scope, benefits and career growth.
- Your alternatives. Compare relevant offers and role-specific evidence. This page makes no claim about industry percentiles or a universal good-hike threshold.
06
Calculate it in a spreadsheet
In Excel or Google Sheets, place the old salary in A2 and new salary in B2. Both cells should contain numbers using the same period.
FORMAT THE RESULT CELL AS PERCENTAGE
OR RETURN A NUMERIC PERCENTAGE, WITHOUT % FORMATTING
=(B2-A2)/A2OR RETURN A NUMERIC PERCENTAGE, WITHOUT % FORMATTING
=((B2-A2)/A2)*100For 1000000 and 1200000, the first formula produces 0.2, displayed as 20% with Percentage formatting. The second produces the number 20. Formatting that second result as Percentage would incorrectly display 2000%.
07
Frequently asked questions
How do I calculate my salary hike percentage?
Subtract your old salary from your new salary, divide the difference by your old salary, and multiply by 100. A change from ₹10,00,000 to ₹12,00,000 is (₹2,00,000 ÷ ₹10,00,000) × 100 = 20%.
Can I use monthly salaries instead of annual CTC?
Yes. Choose Monthly CTC and enter both monthly amounts. The percentage is unchanged when both figures use the same period. The calculator annualizes them for the comparison and optional take-home estimate. Do not mix monthly and annual figures.
What percentage hike is ₹5 lakh to ₹6 lakh?
The increase is ₹1 lakh. Divide ₹1 lakh by the old salary of ₹5 lakh and multiply by 100: the hike is 20%. The monthly CTC increase is approximately ₹8,333 before deductions.
Does this calculator handle a pay cut or no change?
Yes. ₹10 lakh to ₹9 lakh is a −10% change, meaning a 10% pay cut. Identical salaries produce 0%. Both salaries must be positive; a zero old salary cannot be used as the percentage base.
Should I compare CTC, fixed pay or take-home salary?
Compare the same component on both sides. The percentage formula works for any matching component, but the optional take-home estimate assumes the entered figures are CTC. If you enter fixed pay or bank credits, ignore that estimate and use only the exact percentage and amount comparison.
Is a 20% hike always a good offer?
There is no universal good-hike threshold. Check the fixed-pay change, variable-pay conditions, benefits, job responsibilities, location costs and your alternatives. The calculator measures the arithmetic change; it does not rank your offer against an industry salary survey.
How do I calculate hike percentage in Excel or Google Sheets?
With old salary in A2 and new salary in B2, use =(B2-A2)/A2 and format the result cell as Percentage. Alternatively, use =((B2-A2)/A2)*100 for a numeric percentage; do not apply Percentage formatting to that second formula.
Why is my take-home change smaller than my CTC change?
Employer contributions and gratuity can be included in CTC without being paid monthly. Employee PF, professional tax and income tax can also affect bank credits. The optional estimate uses a clearly labeled historical tax preset and editable salary assumptions; your payroll may differ.
Are salary details stored or included in a shared link?
Calculations run in your browser without an account or calculator database. Copy result link includes both annual salary values in the URL, so share it only with people you trust. URLs may be visible in browser history and server logs. Custom take-home assumptions are not included in the link.