About this tool
When you negotiate an offer or a raise you usually need the same few numbers: what a given hike percentage means in money, what percentage a quoted salary represents, and whether it beats inflation. Type in either the hike percentage or the new salary and the other updates. The real hike uses the exact formula (1 + hike) ÷ (1 + inflation) − 1, because the common shortcut of subtracting inflation slightly overstates it. You supply the inflation rate, so you can use whichever index you trust. The offer comparison table adds fixed pay, variable pay weighted by how much you expect to actually be paid, recurring allowances and one-off joining bonuses, and shows the hike for each offer on fixed pay alone and on recurring pay.
How to use it
- Enter your current annual salary, using the same basis (fixed only, or fixed plus variable) that you will use for offers.
- Type a hike percentage to see the new salary, or type the new salary to see the hike percentage.
- Enter an inflation estimate to see your real hike.
- Add offers to compare first-year and recurring pay side by side.
Salary Hike Calculator FAQ
Why is the real hike not simply hike minus inflation?
Because the effects multiply rather than add. A 10% raise with 6% inflation gives 1.10 ÷ 1.06 − 1 ≈ 3.77% more purchasing power, not 4%. The gap grows as the numbers get larger.
Should I count the joining bonus when comparing offers?
Count it for the first year, but not as part of your ongoing salary, because it is paid once and next year’s raise will be calculated on fixed pay. The table shows both figures for that reason.
What should I enter for variable payout %?
Your realistic expectation of how much of the variable pay is actually paid. Ask the recruiter what the payout has been in recent years; if unsure, compare offers at both 100% and a lower figure.