Finance & Work · Verified formula
Pay Raise Calculator
Calculate your new salary, raise amount and pay-period equivalents from a raise percentage.
Formula verified
3+ known-answer test cases
Last verified August 2026
Result
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How to use the Pay Raise Calculator
- Choose whether you're working with an annual salary or an hourly rate.
- Enter your current pay.
- Enter either your raise percentage, or your new pay if you already know it.
- Select Calculate to see the raise amount and pay-period equivalents.
Formula
New pay
New pay = current pay × (1 + raise %) Raise % = (new − old) ÷ old × 100
Worked example
Verified example
QA passed
Current pay: $50,000/yr Raise: 10% New pay = $50,000 × 1.10 = $55,000 Raise amount = $55,000 − $50,000 = $5,000 Result: $55,000 new salary, $5,000 increase
Why this matters: A raise percentage and a raise amount are easy to confuse when negotiating, and mixing up gross and take-home pay can throw off a household budget planned around the new number.
Common mistakes
- Assuming the new gross pay figure equals the new take-home pay — taxes and deductions still apply.
- Applying the raise percentage to net pay instead of gross pay, which produces the wrong new salary.
- Mixing up annual and hourly figures when comparing pay-period equivalents.
Frequently asked questions
How do I calculate my raise percentage?
Subtract your old pay from your new pay, divide by the old pay, then multiply by 100.
What is a typical annual raise?
Cost-of-living raises commonly fall in the 2-4% range, while promotion or merit raises can run higher. This varies by employer, role and location.
Does this calculate taxes on my raise?
No. This shows gross pay changes only. Your take-home increase will be lower after taxes and any pre-tax deductions.
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