About this calculator
Add inflation to see the real increase in buying power, which is what matters over time.
How to use it
- Choose whether you know the hike or the new salary.
- Enter your current salary.
- Optionally enter inflation.
The formula
New salary = current × (1 + hike ÷ 100); hike = (new − current) ÷ current × 100
- hike
- the percentage increase
- real hike
- (1 + hike) ÷ (1 + inflation) − 1
Worked example
₹8 lakh salary with a 12% hike
- New salary = 8,00,000 × 1.12 = ₹8,96,000.
- That is ₹96,000 more a year, ₹8,000 a month.
- With 5% inflation the real increase is about 6.67%.
What the result means
Compare offers on in-hand pay too, using the CTC calculator, because PF, variable pay and tax change the picture.
Assumptions
- Salary figures are on the same basis, both CTC or both in-hand.
Limitations
- Tax on the higher salary is not shown; use the CTC or income tax calculator.
Frequently asked questions
What is a good salary hike in India?
Average appraisal hikes have been around 8% to 10%; job switches often bring 20% to 40%.
How do I calculate my hike percentage?
(New salary − old salary) ÷ old salary × 100.
Why does a 12% hike not feel like 12%?
Inflation eats part of it, and higher tax takes a share of the increase.
Last reviewed on 1 October 2026. Found a mistake? Tell us.