Pay Raise Calculator

How to use the pay raise calculator

Enter your current gross salary or hourly wage, then choose what you know about the change. The calculator finds your new pay, the increase in dollars, and the salary increase percentage. You can also work backward from a new salary offer.

• Choose a calculation mode. Use Raise % for a percentage, Raise amount for a fixed increase, or New pay when you know the proposed salary or wage.
• Match the pay period. A $25 hourly wage and a $60,000 annual salary are different inputs. A fixed raise also needs its own period: $200 a month is a $2,400 annual increase.
• Choose your paycheck frequency. This tells you how the annual change is spread across full paychecks. Select Custom if your payroll calendar uses a different number.
• Check the assumptions. For hourly pay, enter your expected paid hours and paid weeks. Add an inflation rate if you want to compare purchasing power.

All results are in US dollars and before taxes, retirement contributions, insurance, or other deductions. The annual figure assumes the new pay applies for a full year at the same work schedule.

How to calculate a pay raise

From a raise percentage

Multiply current pay by the percentage divided by 100 to find the increase. Add that increase to current pay.

Formula: New pay = Current pay × (1 + Raise percentage ÷ 100)

For a $60,000 salary and a 5% raise: $60,000 × 0.05 = $3,000 more per year. The new salary is $63,000. Dividing the increase by 12 gives $250 more per month before deductions.

From a fixed raise amount

Formula: New pay = Current pay + Raise amount

First put both amounts on the same time basis. A $1.50 hourly increase on $25/hour gives $26.50/hour. At 40 paid hours for 52 weeks, the annual increase is $1.50 × 40 × 52 = $3,120.

From your old and new salary

Formula: Raise percentage = (New pay − Current pay) ÷ Current pay × 100

Moving from $60,000 to $66,000 is a $6,000 increase. Divide $6,000 by $60,000 and multiply by 100: the raise is 10%. Use the old salary as the denominator.

These calculations follow the percentage and flat-amount methods explained by ADP. Intermediate values stay unrounded; displayed currency is rounded to cents. Differences are calculated before rounding, so subtracting two displayed values can differ by one cent.

What is a 3%, 5%, or 10% raise worth?

The same percentage produces a different dollar increase at each starting salary. Here are full-year gross increases on a $60,000 salary. These are examples, not recommended or average raise amounts.

How much more will you get per paycheck?

Divide the annual gross increase by the number of paychecks in the year. A $3,000 annual raise adds $115.38 to each of 26 biweekly paychecks, or $125 to each of 24 semimonthly paychecks, before deductions.

Biweekly means every two weeks. Semimonthly means twice a month. They have different standard annual counts. Some biweekly payroll calendars have 27 pay dates; use Custom and your employer’s actual count for a salary spread evenly across that year’s checks.

A midyear raise does not give you the full annual increase during that calendar year. A first paycheck that spans the effective date may blend the old and new rates. This calculator shows full-period and full-year equivalents, not retroactive pay or a payroll-calendar proration.

Does your raise keep up with inflation?

A nominal raise measures the increase in dollars. A real raise measures the change in what those dollars can buy. Enter an inflation rate for the same comparison period to see the difference.

Formula: Real raise % = [(1 + Raise % ÷ 100) ÷ (1 + Inflation % ÷ 100) − 1] × 100

For an illustrative 5% raise and 3% inflation, the real increase is about 1.94%. Simply subtracting the two percentages gives only an approximation. A raise below inflation reduces purchasing power even though your dollar pay rises.

The method follows the BLS explanation of income and the Consumer Price Index. This tool uses the rate you enter and does not fetch current CPI. A national price index may differ from the change in your own expenses.

Why your take-home increase may be different

A base-pay raise changes gross earnings. Your deposit also depends on withholding, benefits, retirement contributions, and other payroll deductions. The calculator therefore reports gross amounts and does not apply a generic tax percentage.

For US federal withholding, the IRS Tax Withholding Estimator uses your income and tax situation. Check your employer’s payroll statement for the actual net change.

Compare the full offer

When evaluating a new role, compare paid hours, recurring base pay, bonuses, benefits, and time off separately. A higher hourly rate with fewer paid hours can produce lower annual earnings. Our hourly-to-salary guide explains the conversion; use the Overtime Calculator for a separate estimate of overtime pay.

Pay raise calculator FAQ

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