Salary Hike Calculator
New salary from a hike, or the hike from old and new pay — and what it is really worth.
Before and after
If the same hike repeats every year
How this was calculated
About the Salary Hike Calculator
Enter your salary and the hike to see the new salary, monthly and yearly, and the increase in money — or enter the old and new salary to find the hike percentage. If the change took several years, you get the average yearly hike, compounded.
Add the inflation rate to see the real raise — what the extra pay buys once prices have risen — and see where your salary goes if the same hike repeats every year. If a revision applies from an earlier month, the calculator also works out the arrears due for the months already paid at the old rate.
How to use it
- Choose what you know: the hike %, or the old and new salary.
- Enter the salary and whether it is a month or a year. Pick the currency.
- Enter the hike, or the new salary. If the old salary was more than a year ago, enter the years between them.
- Optionally, enter inflation for the real raise and the number of years to project.
- If the revision is paid late, tick Work out arrears and choose the month it applies from and the first month paid at the new salary.
- Read the new salary or hike, the before-and-after table and the projection. Copy the summary or download a CSV.
Examples
₹55,000 a month · ₹6,60,000 a year +₹5,000 a month · +₹60,000 a year
Hike 13% · +₹6,500 a month
46.41% in all · 10% a year on average (compounded) — not 11.6%
Real raise 3.77% — (1.10 ÷ 1.06) − 1, not 10% − 6% = 4%
Arrears for April to June: 3 months × ₹5,000 = ₹15,000
The formulas
- New salary = current salary × (1 + hike ÷ 100). ₹50,000 × 1.10 = ₹55,000.
- Hike % = (new − old) ÷ old × 100. (₹56,500 − ₹50,000) ÷ ₹50,000 = 13%.
- Yearly = monthly × 12; monthly = yearly ÷ 12.
A hike percentage is always measured against the old salary. Going back the other way gives a smaller figure: a 10% rise from ₹50,000 to ₹55,000 is undone by a cut of 9.09%, not 10%.
Hikes compound
Each year’s hike is on the salary after the previous one, so the same percentage adds more money every year. With 10% a year from ₹55,000, year 5 pays ₹80,525.50 a month, and the five years together pay ₹40,29,366 — not ₹55,000 × 12 × 5 plus five equal increases.
The other way round, a change over several years is turned into an average yearly hike with (new ÷ old)^(1 ÷ years) − 1. From ₹40,000 to ₹58,564 in four years is 46.41% in all but 10% a year, because 1.1⁴ = 1.4641. Dividing 46.41% by four (11.6%) overstates it. The CAGR calculator uses the same formula for investments.
The real raise after inflation
If prices rise by inflation i while pay rises by hike h, what the pay buys changes by (1 + h) ÷ (1 + i) − 1. A 10% hike with 6% inflation is a real raise of 3.77%. Subtracting (10% − 6% = 4%) is a close but slightly high estimate, and the gap grows with the rates. A hike below inflation is a real pay cut. Use the inflation figure that matches your spending — the inflation calculator shows what a past amount is worth today.
Arrears
When a revision applies from an earlier month — an appraisal in July backdated to April, say — the months already paid at the old rate are owed the difference. Arrears = (new monthly salary − old monthly salary) × the number of months from the effective month up to, but not including, the first month paid at the new rate. April to June is 3 months.
The figure is before tax. Amounts worked out on pay — PF, for example — are also revised for those months; the PF & ESI calculator works out a month’s contributions.
Limitations
- Works on one salary figure. If only some components rise (basic but not allowances), enter the totals before and after, or use the old and new salary mode.
- Projections repeat the same hike every year; real pay rises vary.
- Arrears are worked out by whole months, before tax and deductions.
- Take-home pay after tax is not worked out — the salary calculator does that for India.
Privacy
Everything happens in your browser. What you enter or open here is not uploaded or stored by MySmartCoPilot.
Frequently asked questions
How do I calculate my new salary after a hike?
Multiply your current salary by 1 plus the hike as a decimal. A 12% hike on ₹40,000 a month is ₹40,000 × 1.12 = ₹44,800 a month, or ₹5,37,600 a year.
How do I calculate the hike percentage?
Subtract the old salary from the new one, divide by the old salary and multiply by 100. From ₹50,000 to ₹56,500: ₹6,500 ÷ ₹50,000 × 100 = 13%.
Is a 10% hike with 6% inflation a 4% raise?
Almost: the real raise is 1.10 ÷ 1.06 − 1 = 3.77%. Subtracting the rates is an approximation that overstates the real raise a little.
What is my average yearly hike over several years?
Choose Old and new salary, enter both and the number of years between them. The calculator works out (new ÷ old)^(1 ÷ years) − 1 — the compounded rate that takes the old salary to the new one.
How are salary arrears calculated?
Multiply the increase in monthly salary by the number of months that were paid at the old rate after the revision applied. A ₹5,000 rise from April, first paid in July, gives 3 × ₹5,000 = ₹15,000 of arrears, before tax.