Salary Increase Calculator
Calculate your new salary after a pay raise, compare every pay period, or find the percentage increase between your old and new pay. Results update instantly and show gross pay before tax and deductions.
Calculate new pay after a raise
Enter your current gross pay, choose its pay period, then add either a percentage raise or a fixed amount.
| Pay period | Before | After | Increase |
|---|
Gross-pay estimate only. Monthly pay uses 12 months and biweekly pay uses 26 pay periods. Hourly figures use the hours and weeks entered above.
Find your salary increase percentage
Use your old and new pay to calculate the raise amount and percentage.
| Pay period | Before | After | Increase |
|---|
Use the same pay period for both figures. The calculation compares gross pay before deductions.
Project salary growth over several years
Estimate future gross salary when the same percentage raise is applied and compounded each year.
| Year | Annual salary | Raise that year | Total increase |
|---|
This is a mathematical projection, not a forecast. It assumes the same raise every year and does not adjust for inflation, tax, bonuses or changes in hours.
A pay raise can be quoted as a percentage, a dollar amount or a new salary. This calculator handles all three. It first converts your current pay to an annual figure, applies the raise, then shows the result for the pay periods people commonly use in the United States.
How to calculate a salary increase
To calculate a percentage raise, multiply your current pay by the raise percentage, then add the increase to your current pay.
Raise amount = Current pay x (Raise percentage / 100)
New pay = Current pay x (1 + Raise percentage / 100)Example: a 5% raise on a $60,000 salary
The annual increase is $60,000 x 0.05 = $3,000. The new annual salary is $60,000 + $3,000 = $63,000. That is $5,250 per month before tax and deductions.
How to find the raise percentage
If you know the old and new salary, subtract the old salary from the new salary. Divide that difference by the old salary and multiply by 100.
Raise percentage = ((New pay - Old pay) / Old pay) x 100Example: salary increased from $75,000 to $82,500
The increase is $7,500. Divide $7,500 by $75,000 to get 0.10, then multiply by 100. The salary increase is 10%.
This is the same percentage-change method used by our Percentage Increase Calculator, with salary and pay-period conversions added.
Annual, monthly, biweekly, weekly and hourly pay
The calculator uses one annual salary as the common basis for each conversion. You can change the hours and weeks assumptions when your schedule is not 40 hours a week for 52 weeks.
| Pay period | Conversion from annual salary |
|---|---|
| Monthly | Annual salary / 12 |
| Biweekly | Annual salary / 26 |
| Weekly | Annual salary / weeks worked per year |
| Hourly | Annual salary / (hours per week x weeks per year) |
Example: how much is a 3% hourly raise?
A 3% raise on $20 an hour adds $0.60 an hour, making the new rate $20.60. At 40 hours a week for 52 weeks, gross annual pay rises from $41,600 to $42,848.
Percentage raise versus a fixed-dollar raise
A percentage raise scales with the current pay. A 5% raise adds $2,500 to a $50,000 salary and $5,000 to a $100,000 salary. A fixed raise adds the same dollar amount for the selected pay period. For example, a $2 hourly raise takes $20 an hour to $22 an hour.
When comparing an offer, make sure the raise amount and current pay use the same period. Do not add an annual raise amount directly to an hourly rate.
How annual raises compound
Repeated salary increases normally compound because each year’s percentage is applied to the salary reached in the previous year.
Future salary = Starting salary x (1 + Annual raise / 100) ^ YearsExample: $50,000 with a 3% raise for 3 years
The projected salaries are $51,500 after year one, $53,045 after year two and $54,636.35 after year three. The total increase is 9.27%, rather than 9%, because the raises compound.
Gross pay and take-home pay are different
This calculator shows gross pay. Your paycheck increase will be lower after federal and state taxes, Social Security, Medicare, retirement contributions, health insurance and other deductions. Tax treatment also depends on where you live and your filing details.
For a separate estimate based on income and filing details, use the Income Tax Calculator. Treat any online tax result as an estimate rather than payroll or tax advice.
Salary increase calculator FAQs
How much is a 3% raise?
Multiply your current pay by 0.03. On a $60,000 salary, a 3% raise is $1,800 per year and the new salary is $61,800. On $20 an hour, it is $0.60 an hour and the new rate is $20.60.
How do I calculate my monthly pay after a raise?
Calculate the new annual salary and divide it by 12. A $60,000 salary after a 5% raise becomes $63,000 a year, or $5,250 a month before deductions.
How do I calculate a raise from old and new salary?
Subtract the old salary from the new salary, divide the difference by the old salary, then multiply by 100. A move from $50,000 to $55,000 is a 10% raise.
Does this pay raise calculator include taxes?
No. It calculates gross pay before federal and state tax, payroll deductions and benefits. A dependable take-home calculation needs location and filing information.
How is a multi-year salary increase calculated?
Each annual raise is applied to the previous year’s salary. The formula is starting salary x (1 + raise rate) raised to the number of years.
Is biweekly pay the same as twice-monthly pay?
No. Biweekly pay usually means 26 paychecks a year. Twice-monthly pay means 24 paychecks a year. This calculator uses 26 periods for biweekly results and 12 periods for monthly results.