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Pay Raise Calculator: Instantly See Your New Salary and Raise Amount
The Pay Raise Calculator converts a percentage increase into real dollars so you can see your new salary, the raise amount, and how different raise scenarios compare. Use it for annual reviews, budgeting, and offer negotiations.
1) What the Calculator Does
This tool applies a percentage increase to your current pay (annual, monthly, or hourly) and returns the updated compensation. It’s designed to make raise discussions concrete, show side-by-side scenarios (e.g., 3% vs. 5%), and help you plan your next steps.
2) Inputs
| Input | Description |
|---|---|
| Current Pay | Your pay before the raise. Enter an annual, monthly, or hourly amount (be consistent across comparisons). |
| Percentage Increase | The raise as a percent (e.g., 3%, 5%, 7.5%). The calculator applies this to your current pay. |
3) How It Works (Formula or Calculation Logic)
The calculator uses a straightforward percentage-increase formula:
raise_amount = current_pay × (percent_increase ÷ 100)
new_pay = current_pay + raise_amount
Variables:
current_pay— your salary, wage, or stipend before the raise.percent_increase— the raise percentage (e.g., 5 for 5%).raise_amount— additional dollars you’ll earn after the raise is applied.new_pay— your updated salary/wage after the raise.
Example: If your salary is $50,000 and your raise is 5%, then raise_amount = 50,000 × 0.05 = $2,500 and new_pay = $52,500.
4) Outputs
| Output | What It Means |
|---|---|
| New Pay | Your compensation after the raise is applied (same cadence as your input—annual, monthly, or hourly). |
| Raise Amount | The extra dollars added by the raise. This helps you compare multiple scenarios quickly. |
5) Practical Use Cases
- Annual Review Prep: Model 3–8% scenarios to set negotiation targets.
- Offer Comparison: Compare a percent raise vs. a flat amount or sign-on bonus.
- Budget Updates: Translate raises into monthly cash-flow changes.
- Inflation Context: Check whether your raise outpaces recent cost-of-living trends.
- Compounding Outlook: Project the impact of repeating small raises over time.
6) FAQ
How do I calculate a pay raise manually?
Multiply your current pay by the percentage (as a decimal) to get the raise amount. Then add that to your current pay. For example, $60,000 × 0.04 = $2,400; new pay is $62,400.
Does this work for hourly wages?
Yes. Enter your current hourly rate as current pay. The result is your new hourly rate. To estimate annual pay, multiply by typical hours (e.g., hours × weeks).
What’s a typical annual raise?
Many employers budget ~2–5% for cost-of-labor adjustments, but high performance, promotions, or hot-market roles can exceed this. Use the slider to compare outcomes.
How does inflation affect my raise?
If inflation is 4% and your raise is 3%, your real purchasing power declines. Consider pairing this tool with an inflation calculator to check your after-inflation result.
Can I compare a raise vs. a one-time bonus?
Yes—use the calculator for recurring pay changes, then contrast with the after-tax value of a bonus. Raises compound into future years; bonuses are one-time.
Does the calculator account for taxes?
No. It shows gross pay. Actual take-home depends on your tax situation and deductions. For planning, apply your marginal tax rate to the raise amount.
