What is the Salary Hike?
A salary hike calculator computes the percentage increase between your old and new CTC, or projects your new CTC from a given hike percentage. Handy at appraisal time or when comparing offers.
Formula
Hike % = (New CTC − Old CTC) / Old CTC × 100
- Old CTC — Existing annual cost to company
- New CTC — Revised annual cost to company
Step-by-step example
Setup: Old CTC ₹8,00,000 → New CTC ₹9,60,000.
- Difference = 1,60,000
- Hike % = 1,60,000 / 8,00,000 × 100 = 20%
Answer: Hike = 20% · Monthly increase ≈ ₹13,333
Frequently asked questions
Should I compare CTC or take-home?
Take-home tells you what actually lands in your account. CTC includes employer-side EPF, gratuity and variable pay which may not be cash-in-hand.
What's a 'good' hike?
In India, 8–12% is typical for a stay raise, 25–50% for a switch in a hot market.