Find out your hike percentage, your new salary, or the raise you need to reach a target pay.
How to use
- Pick what you want to find.
- Fill in the two numbers shown.
- Press Calculate. Use yearly or monthly pay, just stay consistent.
Good to know
Hike percentage is the increase divided by the old salary. The tool works in any currency. Explore more on the Tools page.
What is a salary hike?
A salary hike, also called a raise or an increment, is the increase in pay you receive on top of your current salary. It is normally expressed as a percentage so that it is easy to compare across people and companies. A hike of 10 percent on a yearly salary of 500,000 means you earn 50,000 more, giving a new salary of 550,000. Because hikes are linked to your starting pay, the same percentage gives very different amounts to different people, and that is why working out both the percentage and the actual amount is useful.
This salary hike calculator handles the three questions people ask most often. You can find the hike percentage when you know the old and new salary, the new salary when you know the old salary and the hike percentage, and the percentage you would need to reach a target salary. It is handy before an appraisal discussion, while comparing a job offer, or when planning your monthly budget after a raise.
The formulas behind the calculator
There are only two formulas, and both are simple enough to use by hand when you need to.
- Hike percentage equals new salary minus old salary, divided by old salary, multiplied by 100.
- New salary equals old salary multiplied by one plus the hike percentage divided by 100.
For example, moving from 600,000 to 690,000 gives an increase of 90,000. Divide by 600,000 and you get 0.15, which is a 15 percent hike. In the opposite direction, a 12 percent hike on 450,000 gives 450,000 multiplied by 1.12, which is 504,000.
Worked examples
Imagine you earn 40,000 a month and your manager promises 8 percent. Your new monthly salary is 43,200, which is 3,200 more every month and 38,400 more over a year. If you currently earn 800,000 a year and received an offer of 1,000,000, the jump is 200,000, or exactly 25 percent. If you want to earn 900,000 and your current pay is 720,000, you would need a 25 percent hike, because the gap of 180,000 divided by 720,000 is 0.25.
Notice something that surprises many people. A 25 percent rise sounds big, yet if your pay later falls by 25 percent you do not return to the old figure. A cut of 25 percent from 900,000 leaves 675,000. Percentages are always relative to the number you start from, so be careful when comparing raises and cuts.
Typical hike ranges
Hikes depend on the industry, your performance, the company budget and the wider job market. Annual increments in many companies fall somewhere between 5 and 12 percent for average performance, with higher figures for strong performers or for people who change employers. Promotions and job switches commonly bring bigger jumps than a regular appraisal. Treat any number here as a general idea, not a promise, and check the norms for your own sector and city before you negotiate.
Tips to get a better hike
- Keep a record of your achievements through the year, with numbers where possible. Projects delivered, money saved or customers handled make your case concrete.
- Research market pay for your role and experience so that you can ask for a figure you can justify.
- Raise the topic before the appraisal cycle closes, because budgets are usually fixed by then.
- Think about the total package, not only the base pay. Bonuses, insurance, leave, remote work and learning budgets all have value.
- Use this calculator to prepare two or three numbers, such as your ideal, your fair and your minimum acceptable hike.
Hike versus take home pay
A higher salary does not always raise your bank deposit by the same percentage. Income tax is progressive in many countries, so extra income may be taxed at a higher rate. Provident fund and other deductions also scale with basic pay. Always compare the new take home amount, not only the gross figure, when you decide whether an offer is worthwhile. You can combine this tool with our Percentage Calculator and Average Calculator to compare several offers side by side.
Frequently asked questions
How do I calculate a 10 percent hike?
Multiply your salary by 1.10. For a salary of 500,000 the new figure is 550,000.
How do I find my hike percentage from two salaries?
Subtract the old salary from the new one, divide by the old salary and multiply by 100.
Should I enter monthly or yearly pay?
Either one works. The percentage is identical as long as you use the same period for both numbers.
Does the calculator include tax?
No. It works on gross figures. Taxes and deductions differ by country and person, so check your payslip for the final amount.
Is my salary information stored?
No. Everything is calculated in your browser and nothing leaves your device.
How to prepare for an appraisal discussion
A strong salary conversation starts weeks before the meeting. Write down what you were asked to do at the start of the year, what you actually delivered and any extra responsibilities you picked up. Add numbers wherever you can, such as revenue supported, hours saved, tickets closed or people trained. Then check pay ranges for similar roles in your city using job portals and salary surveys. Use the calculator to turn your target into a clear percentage. A request for a twelve percent raise backed by evidence is far easier for a manager to approve than a vague request for more money.
Comparing a hike with a job switch
When a new employer offers a higher figure, compare more than the headline number. Look at the fixed and variable parts, joining or retention bonuses, notice period buyouts, health cover, work location and commute costs. A fifteen percent hike that adds two hours of travel each day may not be better than a seven percent hike with remote work. Calculate the hike percentage for each offer with this tool, and then add a personal score for growth and stability.
Real hike versus inflation
If prices rise by five percent in a year and your pay rises by five percent, your buying power stays the same. Only the part of the hike above inflation raises your real income. So a ten percent raise in a year with five percent inflation is roughly a five percent real gain. Keep this in mind while planning savings and spending.
Common mistakes
- Mixing monthly and yearly figures in the same calculation.
- Comparing a gross offer with a take home figure.
- Ignoring deductions and taxes that change at a higher income.
- Asking for a number without any proof of performance.
- Forgetting to ask when the raise takes effect and whether it is backdated.