Pay Raise Calculator
Instantly estimate your new salary after a pay raise. Calculate percentage increases, fixed raises, or the exact raise needed to reach a target salary — with support for multiple currencies and pay frequencies.
Salary Comparison
Annual vs Monthly Increase
How to Calculate a Pay Raise
The general method behind every mode in the calculator above.
Calculating a pay raise comes down to comparing two numbers — your current pay and your new pay — and expressing the difference either as a dollar amount or as a percentage. Which direction you calculate in depends on what you already know: a percentage offer, a fixed dollar raise, or a target salary you're aiming for.
Know Your Current Pay
Start from your current annual salary or hourly rate — this is the baseline every calculation compares against.
Apply the Raise
Add a percentage increase, add a fixed dollar amount, or work backward from a target salary you want to reach.
Find the New Total
The result is your new annual salary — which the calculator also breaks down into monthly, weekly, daily and hourly figures.
Check the Percentage
Express the raise as a percentage of your old salary so you can compare it against typical merit-raise or promotion benchmarks.
Percentage Pay Raise Formula
Use this when your raise is expressed as a percentage.
New Salary from a Percentage Raise
New Salary = Current Salary × (1 + Raise % ÷ 100)
A 10% raise on $60,000 = 60,000 × 1.10 = $66,000.
Raise Amount from a Percentage
Raise Amount = Current Salary × (Raise % ÷ 100)
A 10% raise on $60,000 = 60,000 × 0.10 = $6,000.
Percentage raises are the most common way raises are communicated — "you're getting a 5% increase" — because they scale fairly across different salary levels. The Raise by Percentage mode on the calculator above applies this formula automatically and also converts the resulting raise into monthly, weekly, and hourly figures.
Amount Pay Raise Formula
Use this when your raise is a fixed dollar (or other currency) figure.
New Salary from a Fixed Raise
New Salary = Current Salary + Raise Amount
A $5,000 raise on $60,000 = 60,000 + 5,000 = $65,000.
Equivalent Percentage of a Fixed Raise
Raise % = (Raise Amount ÷ Current Salary) × 100
A $5,000 raise on $60,000 = (5,000 ÷ 60,000) × 100 = 8.33%.
Fixed-amount raises are common in flat cost-of-living adjustments or union step increases, where every employee at a level receives the same dollar amount rather than the same percentage. The Raise by Amount mode uses this formula to compute your new salary and back-calculate the equivalent percentage.
New Hourly Rate Formula
Convert an annual raise into an updated hourly wage.
New Hourly Rate from a Percentage Raise
New Hourly = Current Hourly × (1 + Raise % ÷ 100)
A 15% raise on $25/hour = 25 × 1.15 = $28.75/hour.
Hourly Increase from an Annual Raise
Hourly Increase = (Annual Raise ÷ Weeks/Year) ÷ Hours/Week
A $6,000 annual raise over 52 weeks at 40 hours/week = (6,000 ÷ 52) ÷ 40 ≈ $2.88/hour.
Hourly employees can apply the same percentage or fixed-raise formulas directly to their hourly rate, or convert an annual raise down to an hourly figure by dividing through weeks per year and hours per week — exactly what the calculator's frequency settings do when you select "Hourly" as your pay frequency.
How to Calculate a New Annual Salary After a Pay Raise
Turning any raise type into one bottom-line annual figure.
Whatever form your raise takes — percentage, fixed amount, or a target you're negotiating toward — the goal is the same: land on one new annual salary figure you can plan a budget around.
Step by step
- Start with your current annual salary (convert hourly, weekly, or monthly pay to an annual figure first if needed).
- If you have a percentage raise, multiply current salary by (1 + percentage ÷ 100).
- If you have a fixed raise amount, add it directly to your current salary.
- If you're working toward a target salary, that target is your new annual salary — no further math needed for this step.
- The result in each case is your new annual salary, which you can then divide down into monthly, weekly, or hourly terms.
How to Calculate a Raise Amount After a Pay Increase
Working backward from an old and new salary to find the raise itself.
Sometimes you know your old salary and your new salary — say, from an offer letter — but want to know exactly how large the raise was, in dollars and as a percentage.
Raise Amount
Raise Amount = New Salary − Current Salary
Going from $60,000 to $66,000 = 66,000 − 60,000 = $6,000.
Raise Percentage
Raise % = (Raise Amount ÷ Current Salary) × 100
A $6,000 raise on a $60,000 salary = (6,000 ÷ 60,000) × 100 = 10%.
This is exactly what the calculator's Required Raise mode automates: enter your current salary and your target salary, and it returns both the dollar raise amount and the equivalent percentage instantly.
An Example of How to Calculate a Salary Increase
A full walkthrough from starting salary to final take-home breakdown.
Example — 10% Raise on a $60,000 Salary
- Raise Amount = 60,000 × 0.10 = $6,000
- New Annual Salary = 60,000 + 6,000 = $66,000
- Monthly Increase = 6,000 ÷ 12 = $500
- Bi-Weekly Increase = 6,000 ÷ 26 ≈ $230.77
- Weekly Increase = 6,000 ÷ 52 ≈ $115.38
- Daily Increase (5-day week) = 115.38 ÷ 5 ≈ $23.08
- Hourly Increase (40-hour week) = 115.38 ÷ 40 ≈ $2.88
Try this exact scenario in the calculator above by entering $60,000 as your current salary and 10% as the raise percentage — every one of these figures will populate automatically, along with the comparison chart.