Updated Salary Growth

Pay Raise Percentage Calculator

Compare old and new salary, calculate raise percentage, see raise per month or hour, model multiple raises and project future salary growth.

Raise Percentage New Salary Raise Breakdown Multiple Raises Salary Projection

Advanced Pay Raise & Salary Increase Calculator

Switch between Pay Raise Percentage, New Salary, Raise Breakdown, Multiple Raises and Salary Projection to understand how a raise changes your income over time.

Used to estimate hourly raise

This mode assumes 52 weeks per year. Adjust annual salary or hours per week if your schedule is different.

Raises are applied sequentially, so a 5% raise followed by another 5% raise is larger than a single 10% raise.

Projection assumes the same raise percentage is applied once per year and compounded annually.

Pay Raise Percentage Calculator – Understand Your Salary Increase

The Pay Raise Percentage Calculator is designed to make salary changes easy to understand. Whether you are negotiating a raise, evaluating an offer or comparing multiple scenarios, this tool helps you see the raise amount, percentage increase, new salary and the long-term impact on your earnings.

Many people focus only on the headline number of a raise. A five percent increase may sound small or large depending on context, but the real impact shows up in your monthly paycheck, weekly income and hourly rate. This calculator breaks your raise into clear pieces so you can make more informed career and money decisions.

How This Pay Raise Calculator Works

The calculator is organized into five modes to cover the most common salary questions:

  • Percent Raise: Compare old salary and new salary to find the exact raise amount and raise percentage.
  • New Salary: Start from your current salary and a raise percentage to see your new annual, monthly and weekly income.
  • Raise Breakdown: Convert your raise into annual, monthly, weekly and hourly increases.
  • Multiple Raises: Model several raises applied one after another and see the total effective increase.
  • Salary Projection: Project your salary several years into the future under a consistent annual raise percentage.

All modes assume annual salary as the base but convert results into monthly and weekly equivalents where useful.

Mode 1: Pay Raise Percentage from Old and New Salary

This mode answers the classic question: “What percent raise is this?” You enter your old annual salary and your new annual salary. The calculator subtracts the old from the new to determine the raise amount and then divides the raise by the old salary to find the raise percentage.

Pay Raise Percentage Formula

Raise Amount = New Salary − Old Salary
Raise Percentage = (Raise Amount ÷ Old Salary) × 100

The results show the annual raise, the percentage increase, your new monthly salary and how much extra you earn per month compared with your old salary. This makes it easier to visualize how the raise will affect your budget and savings plan.

Mode 2: New Salary from Raise Percentage

In this mode you start with your current annual salary and a raise percentage that is being offered or negotiated. The calculator multiplies your salary by the raise percentage to find the raise amount and then adds the raise to your current salary to find the new salary.

New Salary Formula

Raise Amount = Current Salary × Raise% ÷ 100
New Salary = Current Salary + Raise Amount

The tool also shows how much your raise is worth per month and per week. This is useful when comparing a raise to other money decisions, such as rent increases or loan payments.

Mode 3: Raise Amount Breakdown by Pay Period

The Raise Breakdown mode is designed for people who want to know how a raise flows through to each paycheck. You enter your current annual salary, the raise percentage and your typical hours per week. The calculator then converts the raise into annual, monthly, weekly and hourly figures.

Raise Breakdown Formulas

Annual Raise = Current Salary × Raise% ÷ 100
Monthly Raise ≈ Annual Raise ÷ 12
Weekly Raise ≈ Annual Raise ÷ 52
Hourly Raise ≈ Annual Raise ÷ (52 × Hours per Week)

Seeing the raise at different time scales helps you understand whether a raise will cover new expenses, support additional saving or justify a change in commute, location or responsibility.

Mode 4: Multiple Raise Scenario (Compounded Raises)

Many careers involve several raises over time: a cost-of-living increase, a promotion, then another increase a year later. Raises compound, which means the second raise applies to the salary that already includes the first raise. The Multiple Raises mode lets you input up to three raise percentages applied in sequence.

Compounded Raises Concept

Step 1 Salary = Current Salary × (1 + Raise1% ÷ 100)
Step 2 Salary = Step 1 Salary × (1 + Raise2% ÷ 100)
Step 3 Salary = Step 2 Salary × (1 + Raise3% ÷ 100)
Total Increase% = (Final Salary − Current Salary) ÷ Current Salary × 100

The calculator reports the final salary after all raises, the total increase in currency terms, the total effective raise percentage and the average raise per step. This makes it easy to compare different sequences of raises or evaluate long-term impact of a promotion path.

Mode 5: Salary Projection After Raise

Long-term planning often requires thinking several years ahead. In the Salary Projection mode, you enter your current salary, an expected annual raise percentage and the number of years. The calculator applies the raise each year and provides your salary next year, your salary at the end of the projection period, total increase and total percent growth.

Salary Projection Formula

Salary After N Years = Current Salary × (1 + Annual Raise% ÷ 100)N

This mode is especially powerful when combined with retirement planning, savings goals or decisions about further education. You can test how different raise assumptions—such as three percent versus five percent—change your projected income over five or ten years.

Why Understanding Pay Raise Percentage Matters

Understanding the math behind pay raises helps you negotiate more effectively and interpret offers more clearly. Focusing only on the absolute increase can hide the fact that inflation and cost of living also affect real income. Looking at the percentage and converting raises into monthly and hourly terms gives you a clearer picture.

Common use cases include:

  • Comparing two job offers with different salaries and raise expectations.
  • Checking whether a proposed raise keeps pace with inflation.
  • Evaluating promotion paths and long-term earning potential.
  • Estimating how much extra you can save or invest after a raise.
  • Testing the effect of multiple raises from performance reviews and promotions.

Limitations and Assumptions

This pay raise calculator focuses on base salary and simple raise percentages. It does not model bonuses, stock grants, overtime, variable commissions, taxes or benefits. Real-world compensation packages can be more complex.

Assumptions include:

  • Annual salary is used as the baseline for calculations.
  • Monthly amounts are approximated using 12 months per year.
  • Weekly and hourly conversions assume 52 weeks per year and user-specified hours per week.
  • Raise percentages are applied once per period and compounded for multi-year projections.

For detailed financial planning, it can be helpful to combine this tool with other calculators and advice from a financial professional.

How to Use This Tool Effectively

  • Use the Percent Raise tab to interpret an offer that lists both old and new salary.
  • Switch to the New Salary tab when you know the raise percentage but not the final salary.
  • Open the Raise Breakdown tab before renegotiating to see how much a raise changes each paycheck.
  • Use the Multiple Raises tab to understand how a series of smaller raises compares with one larger raise.
  • Plan long-term goals with the Salary Projection tab using realistic annual raise assumptions.

Related Tools from MyTimeCalculator

For a fuller picture of your finances and income planning, explore these calculators:

Pay Raise Calculator FAQs

Frequently Asked Questions About Pay Raises and Salary Increases

Find clear answers about raise percentages, new salary calculations, multiple raises and long-term salary projections.

A raise is more meaningful when compared with inflation and changes in cost of living. If your raise percentage is lower than recent inflation, your real purchasing power may not increase much. You can pair this Pay Raise Percentage Calculator with an inflation calculator to compare numbers more precisely.

Yes. Convert your hourly wage into an annual amount using your typical hours per week and weeks per year, then enter that annual figure. The Raise Breakdown mode will show the implied hourly raise based on your hours per week input.

No. The calculator works with gross salary before tax. Your actual take-home pay will depend on your tax situation, benefits and other deductions. You can use an income tax calculator alongside this tool to estimate after-tax changes.

Typical raises vary by country, industry, employer and economic conditions. Many organizations target annual increases in the low single digits for cost of living adjustments, with higher raises for promotions or exceptional performance. Use this calculator to model several percentages and see their impact over time.

When raises are expressed as percentages and applied sequentially, the final result is the same regardless of the order. However, the timing of each raise in real life can affect the total amount you earn along the way, which is important for budgeting and savings decisions.

It can provide a simple starting point for planning by combining realistic raise percentages with multi-year projections. For a full career plan, you may also want to consider promotions, job changes, education and different career paths beyond a single steady raise rate.

Related Calculators