Sales
Pay Raise Calculator
Work out your new pay after a percentage raise, or find the raise percentage between an old and a new pay figure. Works as a salary increase calculator for annual pay and as a pay increase calculator for hourly, weekly, biweekly, or monthly pay.
Choose how you are paid, enter your current pay and the raise percentage, and see the increase and your new gross pay.
Enter your values
Gross pay for the selected pay period, before the raise.
The percentage increase applied to current pay. A 0% raise is valid.
Results
New annual salary
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Enter your current pay and a raise percentage.
Raise amount
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The gross increase per year.
Percentage increase
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The raise percentage entered.
Results are estimates based on the values entered and are provided for general planning.
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Step by step
How to use the pay raise
- Choose what to calculate: your new pay after a raise, or the raise percentage between two pay figures.
- Choose how you are paid — hourly, weekly, biweekly, monthly, or annual.
- Enter your Current pay and the Raise percentage, or — in percentage mode — your pay before and after the change.
- If you are paid hourly, review the hours-per-week and weeks-per-year assumptions used to convert pay between periods; they default to 40 and 52 and are editable.
- Read the raise amount, the new pay for your chosen frequency, and the equivalent figures for the other pay periods.
Method
How to calculate pay raise
A percentage raise multiplies current gross pay by the raise rate to produce the increase, which is then added to current pay. The same arithmetic works as a salary increase calculator and as an hourly pay increase calculator: only the pay period attached to the number changes. Because the calculation is proportional, the same percentage produces a larger absolute increase on a larger base.
Formula
Raise amount = Current pay × Raise % ÷ 100 New pay = Current pay + Raise amount Raise percentage = ((New pay − Current pay) ÷ Current pay) × 100 Pay period conversions (all normalised through annual pay): Annual = Hourly × Hours per week × Weeks per year Annual = Weekly × Weeks per year Annual = Biweekly × (Weeks per year ÷ 2) Annual = Monthly × 12 Monthly = Annual ÷ 12 Weekly = Annual ÷ Weeks per year Biweekly = Annual ÷ (Weeks per year ÷ 2) Hourly = Annual ÷ (Hours per week × Weeks per year)
Assumptions
- Every figure is gross pay — the amount before tax and deductions.
- The raise percentage applies to the whole of current pay for the selected pay period.
- Hours per week and weeks per year are editable assumptions used only for pay-period conversions. They are defaults for convenience, not employment standards.
- Biweekly periods are derived as weeks per year ÷ 2, so changing the weeks assumption changes the number of pay periods.
- One-off bonuses, overtime, shift differentials, and benefits are excluded.
The raise amount, the percentage, and every pay-period conversion are calculated at full precision before display. Currency displays two decimals; percentages display two decimals.
How to interpret the result
The new pay figure is gross — the amount before tax and deductions. Take-home pay will be lower, and the rise in take-home pay is usually smaller than the gross rise because part of the increase is taxed. Equivalent pay-period figures are conversions of the same annual amount, so they depend on the hours and weeks assumptions you enter rather than on any payroll calendar.
How much is a 3%, 5%, or 10% raise?
Each percentage is simply a share of the pay it is applied to. On $40,000, a 3% raise is $1,200, a 5% raise is $2,000, and a 10% raise is $4,000. On $60,000 the same percentages are $1,800, $3,000, and $6,000. On $90,000 they are $2,700, $4,500, and $9,000.
On an hourly rate of $20.00, 3% is $0.60 an hour, 5% is $1.00, and 10% is $2.00. None of these percentages is presented here as typical, standard, or recommended — the calculator reports arithmetic, not benchmarks.
How Much Is a $1 or $2 Hourly Raise Per Year?
Using the calculator's default assumptions of 40 hours a week and 52 weeks a year, a $1-an-hour raise is $1 × 40 × 52 = $2,080 of additional gross pay a year, and a $2-an-hour raise is $2 × 40 × 52 = $4,160.
These are increases in annual pay, not total annual salaries, and they are before taxes and deductions. The real figure depends on the hours and weeks you are actually paid for.
To evaluate a dollar-per-hour increase, enter your current and new hourly rates in "Find the raise percentage" mode. Alternatively, calculate the equivalent percentage increase based on your current hourly rate and use "New pay after a raise" mode.
Hourly and salary raise examples
Hourly: $18.50 an hour with a 4% raise increases by $0.74 ($18.50 × 0.04) to $19.24. Annualising needs hours per week and weeks per year; at 40 hours and 52 weeks, $19.24 is $40,019.20 of gross pay a year, and changing either assumption changes that figure.
Salary: $72,000 with a 3.5% raise increases by $2,520 to $74,520 a year, or $6,210 a month, up from $6,000. Run in reverse, $72,000 rising to $74,520 returns the same 3.5%.
How to calculate raise percentage
When you know the old and new figures but not the percentage, use ((new pay − current pay) ÷ current pay) × 100. Pay of $60,000 rising to $63,000 is ($3,000 ÷ $60,000) × 100 = 5%.
A lower new figure is still valid: $60,000 falling to $57,000 returns −5%, which is a pay decrease rather than a raise. The percentage cannot be calculated at all when current pay is $0, because there is no base to compare against.
Pay raise by pay period
Hourly, weekly, biweekly, monthly, and annual pay are all views of the same annual amount. The calculator converts everything through annual gross pay: hourly × hours per week × weeks per year, weekly × weeks per year, biweekly × (weeks per year ÷ 2), or monthly × 12.
Going the other way, monthly is annual ÷ 12, weekly is annual ÷ weeks per year, biweekly is annual ÷ (weeks per year ÷ 2), and hourly is annual ÷ (hours per week × weeks per year). With the default 52-week assumption that produces 26 biweekly periods; with 48 weeks it produces 24. Equivalents that would need an assumption you have not supplied are left out rather than guessed.
Gross pay vs take-home pay
In practice the increase that reaches your bank account is smaller than the gross increase, because part of the raise is withheld. For an after-tax figure, apply your own effective rates to the gross increase shown here.
Limitations
Results depend entirely on the values entered. The calculator does not look up salary data, tax tables, inflation, or pay benchmarks, and it makes no claim about what any percentage should be.
Pay-period conversions assume consistent hours and a consistent schedule. Irregular hours, unpaid leave, mid-year raises, and multi-rate roles will not be reflected by a single conversion.
Frequently asked questions
Which calculator do you need?
- Earning commission on top of base pay? Estimate it with the Commission Calculator.
- Need to total the hours behind your pay first? Use the Work Hours Calculator.
- Running a business and pricing your own work? Start with the Profit Margin Calculator.
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