How to use the pay raise calculator
- Choose what you know: a percent raise, a dollar raise or both the old and new pay.
- Enter your current pay and how it is paid (hourly, weekly, biweekly, monthly or annually).
- Enter the raise or the new pay. Open More options to change hours per week.
- Read the new pay, the raise and the before-and-after table for every pay period.
Formula
New pay = current pay x (1 + raise percent / 100)
New pay = current pay + dollar raise
Raise percent = (new pay - current pay) / current pay x 100
Weekly, monthly and hourly figures are converted from annual pay with 52 weeks and your hours per week.
Worked example: a 4 percent raise
Current pay is $65,000 a year. A 4 percent raise adds $65,000 x 0.04 = $2,600, so the new pay is $67,600.
A flat $2,500 raise instead gives $67,500, which is a 3.85 percent raise because $2,500 / $65,000 = 0.03846.
A 10 percent pay cut works the same way with a negative number: $65,000 x 0.90 = $58,500.
Percent raise versus dollar raise
A dollar raise is worth a larger share to lower-paid employees. $1.00 an hour is 4 percent at $25 an hour but 5 percent at $20. When negotiating, compare percentages to compare offers fairly.
Raises compound
Two 3 percent raises in a row total 6.09 percent, not 6 percent, because the second raise applies to the higher pay. Use the percent change calculator for any pair of numbers.
Before you negotiate
Know the raise in both forms. A manager may offer "$2 more an hour" while you are comparing against a 5 percent market increase. Convert one into the other first. At $30 an hour, $2 is 6.67 percent. At $45 an hour, the same $2 is only 4.44 percent.
Assumptions and limits
- Raises apply to base pay. Overtime, bonuses and benefits are not modeled.
- Hourly equivalents assume the hours per week you set and 52 weeks.
- Figures are gross, before taxes.
Frequently asked questions
How do I calculate a 3 percent raise?
Multiply your pay by 1.03. $50,000 x 1.03 = $51,500.
How do I find the percent raise from two salaries?
Subtract the old from the new, divide by the old and multiply by 100. Choose "new pay" mode and the calculator does it for you.
What if I am paid hourly?
Choose hourly as the pay period. The table converts your new rate into weekly, monthly and annual pay.
Does a raise change my overtime rate?
Yes, for non-exempt hourly employees. Overtime is based on your regular rate, so a higher hourly rate raises the overtime rate too. Check it with the overtime calculator.