Enter your current annual CTC, the hike percent, and the New or Old tax regime. The calculator applies your raise to CTC, then re-runs a full in-hand and tax model so you can see the real jump in take-home and extra tax, not the headline CTC number alone. India’s slab-wise income tax and regime-specific deductions use this built-in take-home model.
About this calculator
A salary hike impact calculator is for the moment your employer quotes a percent raise, a new CTC band, or a job offer with a higher package. A gross or CTC hike does not move your bank balance by the same amount: income tax is progressive, standard deduction and tax regime (New vs Old) change taxable income, and EPF, professional tax, and other line items are applied before in-hand is computed.
This tool starts from your current annual CTC, applies a hike percentage to produce a prospective CTC, and compares take-home and annual tax for both the current and hiked CTC under the same tax regime. That answers the two questions you actually care about in an appraisal: how much more you take home per month, and how much of the increase is absorbed by tax.
It is a planning aid, not a payroll rulebook — use it for offer comparison, setting savings goals after a raise, and deciding whether a higher gross still beats your personal net need after the Old vs New trade-offs.
Common uses
- Model how much in-hand you gain from a 10% or 15% appraisal on your current CTC
- Compare the same hike under New and Old tax regime to see which net result suits you
- Translate an HR letter’s CTC + hike % into monthly take-home impact
- Estimate the extra tax you pay in the year of a promotion before budgeting EMIs or SIPs
Frequently asked questions
Why is my in-hand not increasing by the same percent as my CTC hike?
Income tax in India is progressive: extra income is taxed at the marginal rate for your new slab, not a flat percent of your full salary. EPF, professional tax, and regime-specific deductions (Old vs New) can also shift, so a 15% CTC raise often produces a smaller take-home change than 15%.
How is new CTC calculated from hike percent in this tool?
The calculator takes your current annual CTC and multiplies it by (1 + hike% ÷ 100), then rounds to a whole-rupee annual amount. The same in-hand and tax model is then run for both old and new CTC so the delta is like-for-like on the same regime.
What is the difference between New and Old tax regime in the calculator?
The app uses the same take-home model as the Take-Home calculator: the New regime uses the 2023+ standard deduction and the updated slab table; the Old regime lets you work with a wider deduction and exemption picture when those inputs are part of the model. Pick the same regime for current and hiked CTC to compare a fair what-if.
Is the hike result legal tax advice for my return?
No. The figure is a planning estimate using built-in tax and deduction assumptions (PF, HRA, etc.) from the in-hand engine. For Form 16, TDS, or audit matters, use your employer’s break-up, Form 12BB, and a CA or official utility.
What if my hike includes a variable or bonus reclassification?
The calculator treats the entered amount as a steady annual CTC. Stock, signing bonus, or one-time pay should be modelled separately; only the part that becomes a recurring annual CTC belongs in this CTC line.
How do I use this to compare a job offer to my current CTC + hike letter?
Set current CTC to your present package, enter the offer’s implied hike percent, then compare the in-hand and tax deltas. For the offer, also run the take-home calculator with the offer’s CTC to cross-check a full re-quote of components.