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Salary Hike Percentage Calculator

Calculate the percentage hike between your current and offered salary — essential before accepting an offer.

What the two boxes compare

Enter what you earn now and what you have been offered. The tool works out:

hike % = (new CTC − current CTC) ÷ current CTC × 100

With the defaults, ₹8,00,000 to ₹10,00,000, the hike is 25.00% and the increase amount is ₹2,00,000. The percentage is shown to two decimals.

Both boxes must be on the same basis. Annual against annual, or monthly against monthly, gives the same percentage: ₹95,000 a month to ₹1,18,750 a month is also 25.00%, with an increase of ₹23,750 a month. Annual against monthly gives a meaningless answer.

If the offer is lower than your current pay, the result is negative. ₹10,00,000 to ₹8,00,000 shows −20.00%. If the current figure is 0, there is no base to divide by and the tool shows a dash.

CTC hike or fixed-pay hike

The boxes are labelled CTC, but the number that pays your monthly bills is fixed pay. Run the calculator twice: once on total CTC, once on fixed pay alone. The two answers can be very different.

CurrentOfferHike
Fixed pay₹10,80,000₹12,00,00011.11%
Variable pay₹1,20,000₹3,00,000
Total CTC₹12,00,000₹15,00,00025.00%

The offer is a 25% hike on paper, but most of the increase sits in variable pay, which depends on targets and may be paid once a year. Your guaranteed pay rises 11.11%. Before you compare, ask how much of the variable component was actually paid out to people in the role last year.

Other parts of CTC that are not monthly cash include employer contributions such as PF and gratuity, and insurance premiums. Check that both your current and offered CTC count these the same way, or the hike is comparing different things.

One-time payments inflate the hike

Joining bonuses, relocation allowances and retention bonuses are paid once. If an offer letter folds them into a "first-year CTC", the hike looks bigger than what you will earn from year two.

From a current ₹10,00,000, an offer of ₹12,00,000 plus a ₹1,00,000 joining bonus, quoted as ₹13,00,000, shows 30.00%. Leave the bonus out and the recurring hike is 20.00%. Your next appraisal will be calculated on ₹12,00,000, so use 20% as the real figure and treat the bonus separately, checking whether you would have to repay it if you leave early.

Working back from the hike you want

The tool calculates a percentage from two amounts. To find the CTC that gives a target hike, multiply instead:

target CTC = current CTC × (1 + hike ÷ 100)

For a 35% hike on ₹12,00,000, ask for ₹16,20,000. Enter that figure in the second box to confirm it shows 35.00%.

Percentages are not symmetrical. A drop from ₹10,00,000 to ₹8,00,000 is −20%, but getting back from ₹8,00,000 to ₹10,00,000 takes a 25% hike. Keep this in mind if you are considering a pay cut for a role change and expect to recover it later.

Frequently asked questions

Does a 25% CTC hike mean 25% more take-home pay?+

Usually not. In-hand pay depends on how much of the CTC is fixed cash, on deductions such as employee PF, and on income tax, which rises faster than income at higher slabs. Compare the monthly in-hand estimate in each salary breakup, not just the CTC.

How do I compare two job offers with this tool?+

Run it once for each offer against your current pay, using the same basis each time, ideally fixed pay. Then compare the parts the percentage can't show: variable pay terms, notice period, location costs and benefits such as health cover.

Should I tell the new employer my current CTC?+

Many recruiters ask for it, and some ask for payslips as proof, so whatever you state should be accurate. You can also share the figure you expect instead, worked out with the target formula above, and explain what it is based on.

Is the hike calculated on the old salary or the new one?+

On the old one. The increase is divided by your current pay, which is why going from ₹8 lakh to ₹10 lakh is 25% while the ₹2 lakh difference is only 20% of the new salary.

Embed this tool on your website

Free to use on blogs, school sites and intranets. Paste this code into your page's HTML; please keep the credit line.

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<p style="font-size:13px"><a href="https://utilityapp.lat/hr/salary-hike-percentage-calculator">Salary Hike Percentage Calculator</a> by UtilityApp</p>