How this pay raise calculator works
A raise can be described two ways — as a percentage or as a new pay figure — and this calculator handles both. In the first mode you enter your current pay and a raise percent, and it returns your new pay and the dollar increase. In the second mode you enter your current and new pay, and it returns the raise percentage between them. Whatever you enter, the tool keeps the new pay, the increase and the percentage internally consistent.
The core formulas are simple: new pay = current × (1 + raise% ÷ 100) and, working the other way, raise% = (new − old) ÷ old × 100. The dollar increase is just new pay minus current pay. If you pick the hourly basis, the calculator also annualizes the figures using your hours per week × weeks per year; if you pick annual, it shows the hourly equivalent over the same number of work hours.
Reference note: a standard full-time year is 40 × 52 = 2,080 work hours. All amounts are gross pay; your take-home pay after income tax, Social Security, Medicare and other withholdings will be lower and varies by location and filing status.
Common raise percentages at a glance
| Raise % | On $50,000/yr | New salary |
|---|---|---|
| 2% | +$1,000 | $51,000 |
| 3% | +$1,500 | $51,500 |
| 4% | +$2,000 | $52,000 |
| 5% | +$2,500 | $52,500 |
| 10% | +$5,000 | $55,000 |
Frequently asked questions
- How do I calculate a pay raise?
- Multiply your current pay by the raise percent ÷ 100 to get the dollar increase, then add it on: new pay = current × (1 + raise% ÷ 100). A 4% raise on $50,000 adds $2,000, for a new salary of $52,000.
- What is a good annual raise?
- Typical merit raises run about 3% to 5%, roughly in line with or just above inflation. Promotions and job changes often bring 10% or more. What is good depends on your role, performance, location and local cost of living.
- How do I find the raise percentage between two salaries?
- Subtract the old pay from the new pay, divide by the old pay, then multiply by 100: raise% = (new − old) ÷ old × 100. Going from $50,000 to $52,000 is (2,000 ÷ 50,000) × 100 = 4%.
- Is this before or after tax?
- All figures are gross pay, before income tax, Social Security, Medicare and other deductions. Your net take-home increase will be smaller than the gross raise and depends on your location and withholdings.
- How does a percent raise affect hourly pay?
- It applies the same way: new rate = current rate × (1 + raise% ÷ 100). A 5% raise on $20 an hour gives $21 an hour — about $2,080 more per year at 40 hours a week for 52 weeks.
- What is a cost-of-living raise?
- A cost-of-living adjustment (COLA) keeps your pay's buying power steady as prices rise, often tied to an inflation measure like the CPI. It reflects inflation rather than performance, so it keeps you even rather than ahead.