Salary hikes are the most important factor in an employee’s life. It provides an opportunity to enhance the financial security and living standards in their life. Calculating salary hikes might be difficult, especially with percentages. That is why we created this calculator to simplify the whole process.
You can use our salary hike calculator to figure out your new salary after the hike. Our calculator is easy, error-free, and gives accurate results. You may easily find out your new total salary after the increment or the percentage of your salary increase with a single click.
How to Use Our Salary Hike Calculator?
Our Salary Hike Calculator is easy and simple, and we have two options. You can choose between two options according to your requirements: the first is Find Salary by Hike Percentage, and the second is Find Hike Percentage by Salary.
How to Use Find Salary by Hike Percentage?
This option will calculate your new salary based on the percentage hike. Here’s how to do it:
- Enter Your Salary: In the first field, enter your current salary. You can use either your monthly or annual salary; just make sure the format is consistent.
- Enter Hike Percentage: In the second field, add the percentage hike you estimate (for example, 15%).
- Then Click Calculate: Once both numbers are successfully added, click “Calculate” to get your new salary from an increase.
How to Use Find Hike Percentage by Salary?
This option is for you. If you are aware of old and new salaries but not sure about the percentage increase.
- Enter Current Salary: In the first field, enter your current salary.
- Enter New Salary: In the second field, enter the new salary you’ll receive.
- Then Click Calculate: The result will give you the percentage difference between your old and new salary, which makes it simple to figure out your increased percentage.
Analyzing the Results
- Input Your Data:
Example: Current Salary = ₹50,000, Hike Percentage = 10%. - Review New Salary:
New Salary = ₹50,000 + (₹50,000 × 0.10) = ₹55,000. - Calculate Difference:
Salary increase = ₹55,000 − ₹50,000 = ₹5,000. - Verify Percentage:
Hike = (₹55,000 − ₹50,000) / ₹50,000) × 100 = 10%. - Project Annual Impact:
Old Annual Salary = ₹6,00,000, New Annual Salary = ₹6,60,000. - Financial Impact:
Extra ₹5,000 monthly = ₹60,000 annually for savings, investment, or lifestyle.
Now that you have identified the salary hike, it’s essential to think about the bigger picture. An increase in salary affects several parts of your financial planning. Not only will you earn more money, but you will also need to think about the tax consequences, savings, and how that raise fits into your career path.
For example, if you are assuming a salary increase as a government employee, understanding how the increase affects your CTC (cost to company) would allow you to better prepare for investments and savings.
Benefits of Using a Salary Hike Calculator
- Accuracy: No more manual errors! The calculator ensures you that each hike has been calculated accurately without errors.
- Efficiency: Within a second, this calculator will examine your information and return with the exact percentage or new salary.
- Transparency: By openly displaying the calculations, the tool supports transparent salary negotiations.
- Financial Planning: Whether you’re a professional or a government employee, the calculator may help you prepare for taxes, savings, and investment options following a salary increase.
- Ease of Use: By filling out only a few fields, you can quickly find your new salary.
How to Manually Calculate New Salary Using Hike Percentage?
You do not have to rely on tools to calculate your salary hike. Learning the manual calculation process can be helpful. Here’s how you can manually calculate your new salary after a hike:
Salary Hike Formula
To calculate your new salary after a hike, use the following steps:
- Convert the Hike Percentage into a Decimal: For example, a 10% hike becomes 0.10.
- Multiply Your Current Salary by the Decimal: Assuming your current salary is ₹30,000 and you are receiving a 10% increase. So multiply ₹30,000 by 0.10 to get ₹3,000.
- Add the Increment to Your Current Salary: Adding ₹3,000 to ₹30,000 will give you ₹33,000. That is your new salary after the hike.
This simple calculation allows you to quickly calculate your new income.
How to Manually Calculate the Salary Hike Percentage?
If you know your current and new salary but want to figure out the percentage hike. Here’s how you can manually calculate the Salary Hike Percentage.
Salary Hike Percentage Formula
To calculate your salary hike percentage, use the following steps:
Let’s say your current salary is ₹40,000 and your new salary is ₹45,000:
- Subtract ₹40,000 from ₹45,000 to get ₹5,000.
- Divide ₹5,000 by ₹40,000 to get 0.125.
- Multiply 0.125 by 100, and you’ll get a 12.5% salary hike
How to Calculate Salary Hike Percentage Using Excel?
Excel is the easiest tool for calculating salary hikes, especially when dealing with huge datasets such as a department’s entire salary. Here’s how you can accomplish it:
- Enter Your Current Salary in One Cell: For example, input ₹50,000 in cell A1.
- Enter Your New Salary in Another Cell: Let’s say the new salary is ₹55,000. Input that in cell B1.
- Use a Formula to Calculate the Percentage Hike: In a third cell, use the formula below:
=(B1-A1)/A1*100
This will give you the hike percentage (in this case, 10%)
Calculating Salary Based on Hike Percentage: Example Chart
Here’s an example chart showing how different hike percentages effect various salaries:
| Current Salary | Hike Percentage | New Salary |
| ₹20,000 | 5% | ₹21,000 |
| ₹30,000 | 10% | ₹33,000 |
| ₹50,000 | 15% | ₹57,500 |
| ₹70,000 | 20% | ₹84,000 |
The following chart allows you to easily compare different percentages and visualise the impact of salary hikes on your total revenue.
Frequently Asked Questions (FAQs)
What is a salary hike?
A salary hike is a jump in your existing salary, typically given as a percentage. It means salary increases, which often happen by factors such as performance, growth of the company, inflation, or industry norms.
How does the Salary Hike Calculator work?
The calculator utilizes formulas in order to calculate the percentage hike based on current and new salaries or calculate the updated salary based on a given percentage hike. Simply input your information, and the calculator will give you accurate results in a moment.
How do I calculate a salary hike percentage?
To calculate the salary hike %, subtract the present salary from the new salary, divide the end result with your current salary, and multiply by 100. The final figure is the hike %.
Is the salary hike calculated on CTC or basic salary?
Salary hikes are normally applied to the CTC (cost to the company); however, in some situations, companies just apply the hike to the base salary. Check with your company to see which elements of your salary will be impacted by the hike.
What is a good salary hike percentage?
A good salary hike fluctuates with industry, although a 10-15% increase is generally considered good for most professionals. Government employees may have different percentages due to commanded increments.
How do I calculate a 10% hike in salary?
To calculate a 10% hike, you need to multiply your current salary with 1.10. For example, suppose your salary is ₹30,000. So multiplying with 1.10 will give you ₹33,000 as the new salary after the 10% hike.
How do I calculate a 15% hike in salary?
For a 15% hike, you need to multiply your current salary with 1.15. For example, suppose your salary is ₹40,000. So multiplying with 1.15 will give you ₹46,000 as the new salary after a 15% hike.
How do I calculate a 20% hike in salary?
A 20% hike can be calculated by multiplying your current salary with 1.20. For example, suppose your salary is ₹50,000. So multiplying with 1.20 will give you ₹60,000 as the new salary after a 20% hike.
How do I calculate a 25% hike in salary?
A 25% hike can be calculated by multiplying your current salary with 1.25. For example, suppose your salary is ₹60,000. So multiplying with 1.25 will give you ₹75,000 as the new salary after a 25% hike.
How to calculate a 30% hike on CTC?
If you want to calculate a 30% hike on your CTC, multiply your current CTC by 1.30. For example, if your CTC is ₹80,000, multiplying with 1.30 will give you ₹1,04,000 as your new CTC.
How do I calculate a 35% hike in salary?
A 35% hike can be calculated by multiplying your current salary with 1.35. For example, suppose your salary is ₹70,000. So multiplying with 1.35 will give you ₹94,500 as the new salary after a 35% hike.
How do I calculate a 40% hike in salary?
A 40% hike can be calculated by multiplying your current salary with 1.40. For example, suppose your salary is ₹1,00,000. So multiplying with 1.40 will give you ₹1,40,000 as the new salary after a 40% hike.
How do I calculate a hike for government employees?
Government employees often get salaries based on defined annual increments or salary schedules. To figure out a hike, apply the same rules, but go to government statistics for exact percentages based on your salary grade.