Salary Increase Calculator
Work out what a raise is really worth. This free salary increase calculator turns a raise percentage into your new annual salary — or, if you enter your new salary, it tells you what percentage increase you got, with the yearly and monthly difference.
Calculate your salary increase
How do you calculate a salary increase?
There are two directions, and this salary increase calculator handles both. Going forward: multiply your current salary by one plus the raise percentage divided by 100. A $50,000 salary with a 5% raise becomes $50,000 × 1.05 = $52,500. Going backward — how do you calculate percentage increase in salary when you only know the two figures? Subtract the old salary from the new one, divide by the old salary, and multiply by 100. Moving from $50,000 to $54,000 is ($54,000 − $50,000) ÷ $50,000 × 100 = an 8% increase.
Remember that a raise applies to gross pay. Because US federal brackets are marginal, only the new dollars are taxed at your top rate — a raise never lowers your take-home pay. To see the after-tax effect, run your new salary through one of our state paycheck calculators.
What common raises are worth (on a $60,000 salary)
The table translates typical raise percentages into real dollars for someone earning $60,000 a year. Annual cost-of-living adjustments have recently run around 3%, while promotions often land between 5% and 10%.
| Raise | New annual salary | Extra per year | Extra per month |
|---|---|---|---|
| 3% | $61,800 | $1,800 | $150 |
| 4% | $62,400 | $2,400 | $200 |
| 5% | $63,000 | $3,000 | $250 |
| 10% | $66,000 | $6,000 | $500 |
How to use this calculator
- Enter your current salary. Type your current gross annual salary. If you are paid hourly, multiply your hourly rate by the hours you work per year first.
- Enter the raise percentage. If you know the percentage — say a 5% merit increase — enter it to see your new annual salary and the extra pay per year and per month.
- Or enter your new salary instead. If you know the new figure but not the percentage, leave the raise field empty and enter the new salary. The calculator answers how do you calculate salary increase percentage for you: it returns the exact percent increase.
- Read the breakdown. Press Calculate to see the raise in every form: percentage, new annual salary, and the increase per year and per month.
Frequently asked questions
How do you calculate percentage increase in salary?
Subtract your old salary from your new salary, divide by the old salary, and multiply by 100. For example, going from $50,000 to $54,000 is (54,000 − 50,000) ÷ 50,000 × 100 = 8%.
Is this salary increase calculator free?
Yes. It is free, needs no sign-up, and runs entirely in your browser.
What is a typical salary increase?
US annual merit increases have recently averaged around 3% to 4%, tracking the Employment Cost Index. Promotions or job changes commonly bring 5% to 15%. Compare any offer against inflation to see the real gain.
Does a raise change my take-home pay by the same percentage?
Not exactly. Federal and most state taxes are progressive or flat on gross pay, so your net pay rises slightly less than your gross raise percentage — but a raise never reduces take-home pay, because only the new dollars are taxed at your top marginal rate.
Can I use it for a pay cut?
Yes. Enter a negative percentage (for example −10) or a new salary lower than the current one, and the calculator shows the decrease per year and per month.