Salary Promotion Increase Calculator

Calculate promotion increases across pay ranges and roles. See new salary, bonus, and compa ratio. Download reports, share scenarios, and align stakeholders fast now.

Inputs
Enter current pay and your promotion policy choices.
Use a label for exports and stakeholder reviews.
Use the same basis as pay frequency.
%
Common ranges: 5–20% depending on policy.
Use amount basis to interpret this value.
%
Example: 95% of midpoint for developing levels.
If enabled, base salary stays within min/max.
If percent, it applies to base salary.
Some plans don’t change bonus targets during promotions.
%
Flags increases above your policy threshold.
1 = full year; 0.5 = half-year impact.
Used for retro pay estimate (simple daily rate).
%
Estimates fully loaded budget impact.
Use larger steps to match comp-cycle rules.
Example promotion scenarios
Sample rows show how the calculator outputs can be reviewed across a team.
Employee Current base Method Increase New base Compa (before → after)
Analyst A ₨ 1,200,000 Percent 12% ₨ 1,344,000 0.92 → 1.03
Specialist B ₨ 1,800,000 Fixed ₨ 180,000 ₨ 1,980,000 0.95 → 1.04
Lead C ₨ 2,500,000 Target ₨ 2,850,000 0.98 → 1.12
Manager D ₨ 3,600,000 % of midpoint 105% ₨ 3,780,000 1.00 → 1.05
Senior E ₨ 4,200,000 Percent (clamped) 18% ₨ 4,800,000 1.06 → 1.20
Formula used
  • Annualize base: annual = annual, annual = monthly × 12, annual = hourly × hours_per_week × weeks_per_year
  • Percent method: new_base = current_base × (1 + increase_percent/100)
  • Amount method: new_base = current_base + increase_amount (converted to annual)
  • Target method: new_base = target_salary (converted to annual)
  • Midpoint method: new_base = range_midpoint × (midpoint_percent/100)
  • Increase percent: increase_pct = (new_base − current_base) / current_base × 100
  • Compa ratio: compa = base / midpoint (requires midpoint)
  • Range penetration: (base − min) / (max − min) × 100 (requires range)
  • Retro pay estimate: retro = (increase_amount/365) × days_since_effective
  • Loaded increase: loaded = (increase_amount × proration) × (1 + payroll_tax_rate/100)
How to use this calculator
  1. Enter current salary and choose pay frequency for accurate annualization.
  2. Pick a promotion method that matches your policy: percent, fixed, target, or midpoint-based.
  3. Optional: add pay range values to view compa ratio and range penetration changes.
  4. Optional: add bonus, allowances, and other comp to compare total compensation.
  5. Set proration, effective date, and employer tax rate to estimate budget impact.
  6. Review the summary, then export CSV or PDF for sharing.

Promotion increase benchmarks and guardrails

Promotion raises commonly land between 5% and 20% of base pay, with higher moves used for major scope or market corrections. This calculator lets you model percent, fixed amount, target salary, or midpoint-based approaches in one place. For example, a 12% raise on ₨1,800,000 adds ₨216,000 annually before incentives and taxes. Use the budget cap field to flag proposals that exceed your policy ceiling, then apply rounding to match compensation cycle rules and avoid inconsistent odd figures.

Pay range alignment with compa ratio and penetration

When pay bands are available, entering minimum, midpoint, and maximum converts the result into range language leaders understand. Compa ratio is base divided by midpoint; a value near 1.00 suggests alignment, while 0.85 can indicate developing proficiency or prior under-market placement. Range penetration shows where pay sits between min and max, supporting consistent decisions across grades and helping prevent compression.

Budget impact using proration, effective dates, and taxes

Operational planning benefits from estimating the cost that actually hits the budget. Proration scales the annual increase to reflect partial-year impact, such as 0.50 for a midyear effective date. Employer payroll taxes and statutory contributions can be layered as a percentage to estimate fully loaded cost. If the effective date is in the past, a simple retro pay estimate applies the daily rate to elapsed days.

Total compensation view with bonus and recurring add-ons

Base pay is only part of the promotion narrative, especially for roles with target incentives. The bonus setting supports percent-of-base targets or fixed annual payouts, and you can choose whether bonus targets update with the new base or stay anchored to the prior base. Adding allowances and other recurring components provides a clearer total compensation delta that can be shared with finance and leadership.

Scenario documentation, approvals, and audit readiness

A repeatable review process reduces risk and improves perceived fairness. Name each scenario clearly, capture the method used, and export CSV for spreadsheets or PDF for approvals and employee letters. Pair the output with role scope notes, performance evidence, and internal equity checks. Over time, archived scenarios help HR validate promotion practices, refine guidelines, and explain decisions consistently.

FAQs

How do I calculate a promotion for hourly employees?

Select Hourly, then enter the hourly rate, hours per week, and weeks per year. The calculator annualizes pay, applies the promotion method, and converts the new pay back to an hourly display for easy review.

When should I use percent versus target salary?

Use percent when policy sets standard promotion ranges. Use target salary when you have a confirmed new-rate offer, market adjustment, or pay-band placement that must land on a specific figure after approvals.

What does compa ratio tell me?

Compa ratio is base salary divided by range midpoint. It helps compare employees in the same band and evaluate whether a promotion moves someone closer to expected pay for the level.

Why enable “Clamp to range”?

Clamping keeps the new base within the range minimum and maximum. It is useful when policy prohibits paying below minimum or above maximum, and it prevents accidental out-of-band results during modeling.

How is retro pay estimated?

If the effective date is earlier than today, the calculator multiplies the annual base increase by elapsed days divided by 365. This is a simple estimate; payroll systems may use workdays, pay periods, or local rules.

What do the CSV and PDF exports include?

Exports capture the scenario label, dates, base and bonus changes, total compensation delta, proration, tax loading, and optional range metrics. Use CSV for team modeling and PDF for approvals, documentation, and communication.

Related Calculators

Promotion Compensation IncreasePromotion Salary GrowthPromotion Increment EstimatorPromotion Raise PercentagePromotion Pay Increase

Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.