Formula
new salary = current salary × (1 + increment % ÷ 100)
- For a projection the same factor is applied once per year, so increments compound.
Multiply by one plus the increment as a decimal.
Worked example
10% on 600,000 a year, 2 years
- Salary is entered per
- Year
- Current salary
- 600,000
- Increment
- 10 %
- Years to project
- 2
New salary per year
660,000.00
Increase per year: 60,000.00
New annual salary: 660,000.00
New monthly salary: 55,000.00
How it works
A 10% increment on 600,000 a year gives 600,000 × 1.10 = 660,000, or 55,000 a month. Project several years and each year's raise applies to the already-raised salary, so three 10% raises total 33.1%, not 30%.
Increments are often quoted on basic pay or on CTC, which can lead to different take-home changes. Enter the figure the percentage actually applies to. To work out the percentage from two salaries use Salary Hike Percentage Calculator; for take-home after tax see CTC to Take-Home Salary Calculator (India); to compare offers use Salary Comparison Calculator. The general method is the Percentage Increase Calculator.
Assumptions and limits
- Gross figures. Tax and deductions aren't applied.
- Amounts are rounded to two decimals.