Calculate Salary Hike & Real Value
✓ Pay Raise - Calculate new salary after hike
✓ Real Value - Include inflation & tax impact
✓ Compare Offers - Side-by-side job comparison
✓ Growth Timeline - Multi-year salary projection
💡 Pay Raise
Calculate salary after raise
New Annual Salary
₹6,60,000
₹60,000 increase (10.00%)
Current Salary
₹6,00,000
Raise Amount
₹60,000
Raise %
10.00%
New Monthly
₹55,000
Raise Rating
Average
📊 Salary Breakdown
| Period | Before Raise | After Raise | Increase |
|---|---|---|---|
| Annual | ₹6,00,000 | ₹6,60,000 | +₹60,000 |
| Monthly | ₹50,000 | ₹55,000 | +₹5,000 |
A Pay Raise Calculator (also called Salary Hike Calculator or Increment Calculator) helps you calculate your new salary after a percentage or fixed amount increase. It's essential for understanding the real value of your raise after accounting for inflation and taxes.
Our calculator includes inflation adjustment (showing real purchasing power), income tax calculations (New Tax Regime), job offer comparison, and unique multi-year salary projection - all tailored for India with ₹ currency and CTC calculations.
New Salary = Current Salary + (Current Salary × Raise %)
Or Fixed: New Salary = Current Salary + Raise Amount
Raise % = (Raise Amount ÷ Current Salary) × 100
Given:
• Current Salary: ₹6,00,000/year
• Raise: 10%
Calculation:
Raise Amount = ₹6,00,000 × 10% = ₹60,000
New Salary = ₹6,00,000 + ₹60,000 = ₹6,60,000/year
New Monthly = ₹6,60,000 ÷ 12 = ₹55,000/month
Real Raise % = [(1 + Nominal Raise%) / (1 + Inflation%)] - 1
Example: 10% nominal raise with 5% inflation = [(1.10 / 1.05) - 1] × 100 = 4.76% real raise
| Performance Rating | Typical Raise % | Description | Example (₹6L) |
|---|---|---|---|
| Below Average | 0-3% | Needs improvement | ₹6,00,000 - ₹6,18,000 |
| Poor Performance | 3-5% | Meets minimum expectations | ₹6,18,000 - ₹6,30,000 |
| Average | 5-8% | Meets expectations | ₹6,30,000 - ₹6,48,000 |
| Good | 8-12% | Exceeds expectations | ₹6,48,000 - ₹6,72,000 |
| Excellent | 12-15% | Significantly exceeds | ₹6,72,000 - ₹6,90,000 |
| Exceptional | 15-20%+ | Outstanding performance | ₹6,90,000 - ₹7,20,000+ |
💡 Note: These are average ranges for 2025. Actual hikes vary based on company performance, individual contribution, and market conditions.
The actual percentage or amount increase in your salary without considering inflation.
Example:
Current: ₹6,00,000
10% Raise: ₹60,000
New Salary: ₹6,60,000
The actual increase in purchasing power after accounting for inflation.
Example (5% inflation):
Nominal Raise: 10%
Inflation: 5%
Real Raise: 4.76%
Formula: (1.10 / 1.05 - 1) × 100
• If you get a 5% raise but inflation is 5%, your real raise is 0% - your purchasing power stays the same!
• A 10% raise with 8% inflation means only ~1.85% real increase in your standard of living.
• Always negotiate based on real raise to maintain or improve your purchasing power.
🎯 Sample Negotiation Script:
"Based on my research, the market rate for my role with my experience is ₹X to ₹Y. Given my contributions this year [specific achievements], and considering the current inflation rate of 5%, I believe a 12% raise to ₹Z is fair and reflects my value to the team."
Raise % = [(New Salary - Current Salary) / Current Salary] × 100
Example: If your salary increased from ₹6,00,000 to ₹6,60,000:
Raise % = [(6,60,000 - 6,00,000) / 6,00,000] × 100 = 10%
A "good" salary hike depends on your performance and industry:
Average Performance:
5-8% (barely beats inflation)
Good Performance:
8-12% (comfortable real growth)
Excellent Performance:
12-15% (strong real increase)
Exceptional/Promotion:
15-30% (significant jump)
Inflation reduces the purchasing power of your salary. Here's the impact:
| Nominal Raise | Inflation | Real Raise | Impact |
|---|---|---|---|
| 5% | 5% | 0% | No real gain |
| 8% | 5% | 2.86% | Minimal gain |
| 12% | 5% | 6.67% | Good real growth |
✅ Annual Review Cycle
Most companies budget for raises during annual appraisals (typically March-April in India)
✅ After Major Achievement
Successfully completed big project, landed major client, exceeded targets
✅ After Role Expansion
Your responsibilities significantly increased without title change
✅ Market Rate Increase
Industry salaries rose significantly, you have competing offer
Job switching typically offers higher raises than internal promotions:
💡 Tip: Switching jobs every 2-3 years can accelerate salary growth by 50-100% over 5 years compared to staying.
Our Pay Raise Calculator (also known as Salary Hike Calculator or Increment Calculator) is the most comprehensive free tool for calculating salary increases in India. Whether you're preparing for your annual appraisal, negotiating a new offer, or comparing job opportunities, this calculator provides instant, accurate insights into your real earnings growth.
The calculator features 4 powerful modes: Basic Pay Raise (calculate new salary from percentage or fixed amount increase with performance rating), Real Value Calculator (includes inflation adjustment showing actual purchasing power gain and optional income tax impact using New Tax Regime rates), Job Offer Comparison (compare two salary offers side-by-side with real raise calculations), and unique Growth Timeline (project your salary over 5, 10, or 20 years with compounding annual raises and inflation adjustment).
Perfect for all professionals in India whether you're in IT (typical 12-18% raises), AI/ML (15-25% raises), Banking (8-12% raises), or any other industry. The calculator accounts for India's current inflation rate (4.9% in 2025), provides industry-specific raise benchmarks, includes performance rating system (Poor 3-5%, Average 5-8%, Good 8-12%, Excellent 12-15%, Exceptional 15-20%+), and helps you understand the critical difference between nominal raises (what your employer tells you) and real raises (actual increase in purchasing power after inflation).
Use this tool for annual appraisal preparation, salary negotiation strategy, comparing job switch vs. staying, understanding inflation impact on your earnings, multi-year career financial planning, or evaluating if your raise beats inflation. 100% free, no registration required, mobile-responsive, and completely private - all calculations happen in your browser. Updated for 2025 with latest inflation data and industry benchmarks.