Pay Raise Calculator
Calculate your new salary and raise amount based on percentage increases. Works for both annual salaries and hourly wages.
Enter Compensation Details
Calculation Formulas
Basic Raise Calculation
Raise Amount = Current Salary × (Raise Percentage ÷ 100)
New Salary = Current Salary + Raise Amount
Hourly Wage Conversion
Annual Salary = Hourly Rate × Hours/Week × Weeks/Year
Standard full-time: 40 hours/week × 52 weeks = 2080 hours
Real-Life Examples
Example 1: Standard Annual Raise
Current Salary: $50,000/year
Raise Percentage: 3%
Calculation: 50,000 × 0.03 = $1,500 raise
New Salary: $51,500/year
Example 2: Promotion with Significant Raise
Current Salary: $75,000
Raise Percentage: 12.5%
Calculation: 75,000 × 0.125 = $9,375 raise
New Salary: $84,375
Example 3: Hourly Wage Increase
Current Wage: $18.50/hour
Raise Percentage: 4.5%
Calculation: 18.50 × 0.045 = $0.83 raise
New Wage: $19.33/hour
Example 4: Cost of Living Adjustment
Current Salary: $42,000
Raise Percentage: 2.8%
Calculation: 42,000 × 0.028 = $1,176 raise
New Salary: $43,176
Example 5: Performance Bonus
Current Salary: $68,000
Raise Percentage: 8.25%
Calculation: 68,000 × 0.0825 = $5,610 raise
New Salary: $73,610
Example 6: Part-Time Hourly Increase
Current Wage: $15/hour (20 hrs/week)
Raise Percentage: 6%
Calculation: 15 × 0.06 = $0.90 raise
New Wage: $15.90/hour
Example 7: Contract Rate Increase
Current Rate: $45,000 annual contract
Raise Percentage: 10%
Calculation: 45,000 × 0.10 = $4,500 raise
New Rate: $49,500
Example 8: Retail Position Raise
Current Wage: $12.75/hour
Raise Percentage: 5.75%
Calculation: 12.75 × 0.0575 = $0.73 raise
New Wage: $13.48/hour
Example 9: Executive Compensation
Current Salary: $220,000
Raise Percentage: 15%
Calculation: 220,000 × 0.15 = $33,000 raise
New Salary: $253,000
Example 10: Minimum Wage Adjustment
Current Wage: $7.25/hour (federal minimum)
Raise Percentage: 20%
Calculation: 7.25 × 0.20 = $1.45 raise
New Wage: $8.70/hour
Frequently Asked Questions
1. How is the raise amount calculated?
The raise amount is calculated by multiplying your current salary by the raise percentage (converted to decimal). For example: $50,000 × 5% = $2,500.
2. Does this account for taxes?
No, this calculator shows gross amounts before any tax deductions. The actual take-home pay will depend on your tax situation.
3. Can I use this for hourly wages?
Yes! Enter your hourly rate as the "current salary" and the calculator will show your new hourly rate and raise amount per hour.
4. How does compounding work with multiple raises?
This calculator shows a single raise. For multiple raises, you would need to apply each percentage increase sequentially to the new salary amount.
5. What's considered a good raise percentage?
Typical raises range from 2-5% for cost-of-living adjustments. Promotions might offer 10-20%. Tech and high-demand fields sometimes see higher increases.
6. How do I convert hourly to annual?
Multiply hourly rate by hours worked per week × 52 weeks. For full-time: $20/hour × 40 hrs × 52 wks = $41,600 annual.
7. Can I calculate reverse (desired salary → %)?
Yes! Use formula: ((Desired Salary / Current Salary) - 1) × 100. Example: ($55k/$50k -1) × 100 = 10% raise needed.
8. How often are raises typically given?
Most companies offer annual raises, but some do quarterly or project-based adjustments. Government jobs often have scheduled step increases.
9. What if I receive multiple raise types?
Calculate each separately: First apply percentage raise, then add any fixed-amount bonuses. The order can affect the final result.
10. How does inflation affect raises?
A raise below inflation rate means reduced purchasing power. For real wage growth, raise percentage should exceed inflation.
