Pay raise calculator
Calculate a new salary, hourly rate or paycheck from a percentage or fixed raise—or enter old and new pay to find the raise percentage.
Enable JavaScript to use the calculator. The formulas and checked examples remain available below.
Pay raise formulas
Raise percentage = (new pay − current pay) ÷ current pay × 100
Exact real raise = (1 + nominal raise) ÷ (1 + inflation) − 1
The calculator converts the selected basis to annual pay, then derives monthly, biweekly, weekly and hourly equivalents. Hourly annualization uses the entered regular hours and paid weeks. Overtime is shown separately and does not change the base raise percentage.
Checked examples
| Inputs | Result |
|---|---|
| $60,000 annual salary with a 5% raise | $63,000; increase $3,000 |
| $25/hour with a 4% raise | $26/hour |
| $1,500 biweekly to $1,575 | 5% raise |
| $5,000 monthly plus $250 | $5,250; 5% raise |
| $20/hour, 40 hours/week, 52 weeks | $41,600 annual base pay |
| 5% nominal raise and 3% inflation | About 1.94% exact real raise |
| $60,000 with 5% annual raises for two years | $66,150 after compounding |
How to use the calculator
- Select whether you know the raise percentage, new pay or fixed increase.
- Choose the same pay basis used by the amount you enter.
- For hourly pay, enter actual regular hours, paid weeks and optional overtime.
- Add an inflation assumption only if you want purchasing-power context.
- Review each pay-period equivalent and the year-by-year projection.
Frequently asked questions
How do I calculate the percentage of a raise?
Subtract old pay from new pay, divide the difference by old pay and multiply by 100. Use amounts with the same pay basis.
How much is a 3% raise?
Multiply current pay by 0.03 to find the increase, or by 1.03 to find new pay. For $50,000, the increase is $1,500 and new pay is $51,500.
Does the calculator estimate take-home pay?
No. Tax and deduction rules depend on jurisdiction and personal circumstances. Every amount here is gross pay.
Why is the real raise different from raise minus inflation?
The exact comparison divides the new-pay factor by the inflation factor. Simple subtraction is only an approximation.
Does overtime count as base salary?
No. Optional overtime is displayed separately because hours and eligibility can change. The base raise is calculated from the selected regular-pay amount.
Are repeated annual raises added or compounded?
They compound: each year’s percentage applies to the previous year’s pay. The projection is an illustration, not a prediction or employer commitment.
Related calculators: Salary Calculator, Percentage Calculator, Inflation Calculator and Time Card Calculator.