Pay Raise Calculator
The raise as an amount and a percentage from your old and new pay, or your new pay from a raise percentage, with an optional inflation check.
Result…
How it's calculated
Raise % = (new − old) ÷ old × 100 New pay = old × (1 + raise% ÷ 100) Real raise = (1 + raise%) ÷ (1 + inflation%) − 1
A raise percentage is always measured against the old pay. The yearly, monthly and hourly views assume 52 paid weeks and the hours you enter, so they are a guide for comparing jobs, not a payslip. The inflation check uses the rate you type in; the real raise divides rather than subtracts, so a 6% raise with 4% inflation is about 1.92% in real terms, not 2%. Tax can take a different share of the raise than of the rest of your pay, depending on your country.
Your numbers, step by step
About the Pay Raise calculator
This pay raise calculator shows how big a raise really is. Enter your old and new pay to get the raise as an amount and a percentage, or enter your old pay and a raise percentage to get your new pay. The pay can be per year, month, week or hour, and the result is shown yearly, monthly and hourly so you can compare salaries and job offers on the same footing. Turn on the inflation comparison and type in the inflation rate you want to measure against to see the real raise: how much more your pay actually buys. The working is shown step by step, so you can check every figure. All amounts are gross, before tax, and tax rules on extra pay depend on your country. To turn any salary into an hourly rate in more detail, use the salary to hourly calculator.
How to use it
- Under “I know”, choose “Old and new pay” or “Old pay and raise %”.
- Pick what the pay is for in “Pay is per”: year, month, week or hour.
- Enter the “Old pay”, then the “New pay” or the “Raise” percentage.
- Set “Hours per week” so the hourly figure matches your job.
- To check against rising prices, set “Compare with inflation” to Yes and enter the rate.
Worked example
Pay goes from 48,000 to 50,400 a year. The raise is 50,400 − 48,000 = 2,400, and 2,400 ÷ 48,000 × 100 = 5%. That is 4,200 a month, or about 24.23 an hour at 40 hours a week. With 3% inflation, the real raise is 1.05 ÷ 1.03 − 1 = about 1.94%, not 2%.
Updated
Questions people ask
How do I calculate my pay raise percentage?
Subtract your old pay from your new pay, divide by the old pay and multiply by 100. Going from 40,000 to 42,000 is 2,000 ÷ 40,000 × 100 = 5%.
What is the formula for new pay after a raise?
New pay = old pay × (1 + raise ÷ 100). A 3.5% raise on 60,000 gives 60,000 × 1.035 = 62,100.
What is a real raise?
It is your raise after allowing for inflation: (1 + raise) ÷ (1 + inflation) − 1. If prices rose faster than your pay, the real raise is negative even though the amount on your payslip went up. The inflation calculator shows how prices change over longer periods.
Why is my real raise not just the raise minus inflation?
Subtracting is a quick estimate, but the exact figure divides. A 6% raise with 4% inflation is 1.06 ÷ 1.04 − 1, about 1.92%, a little under 2%.
How do I compare two salaries or job offers?
Enter your current pay as the “Old pay” and the offer as the “New pay”, with each one's hours if you compare hourly. The percentage is worked out on the old pay; dividing by the new pay is a common mistake that makes the difference look smaller. Benefits, hours and tax can differ between offers, so weigh those too.
Does this show my take-home pay after the raise?
No. Every figure is gross, before tax and deductions, and how much of a raise you keep depends on your country's tax rules and your own situation. Check your payslip or a local tax adviser for the net figure.