Formula
hike % = (new salary − old salary) ÷ old salary × 100
- Both salaries must be the same kind: both annual CTC, or both monthly in-hand.
The raise as a share of what you earned before.
Worked example
500,000 → 575,000
- Current salary
- 500,000
- New salary
- 575,000
Salary hike
15%
Result: Hike
Difference: 75,000.00
Difference per month (if annual figures): 6,250.00
How it works
Going from 500,000 to 575,000 is a rise of 75,000, which is 75,000 ÷ 500,000 = 15%. The tool also shows the difference per month, which is useful when negotiating an offer.
A common trap is comparing CTC (cost to company, including employer contributions) with take-home pay: the hike looks bigger or smaller than it really is. Compare like with like. To go the other way, from a percentage to a new salary, use the Salary Increment Calculator; to compare two offers with bonuses use Salary Comparison Calculator. The sum itself is a percentage change.
Assumptions and limits
- Gross figures; tax isn't considered.