How it works
How to use this pay raise calculator
- Choose From raise % or From new pay.
- Enter current pay and the other value for that mode.
- Read new pay, the dollar increase, and the raise percent.
Formula
The calculation formula
New pay = Current pay × (1 + Raise % ÷ 100)01
Convert the raise percentage to a decimal.
02
Multiply current pay by one plus that rate.
03
Subtract current pay to see the dollar increase. The reverse mode divides the increase by current pay.
Worked examples
Example calculations
Raise from a percent
$50,000 × (1 + 5 ÷ 100) = $52,500. The increase is $2,500.
Raise from a new salary
From $50,000 to $52,500 the raise is ($2,500 ÷ $50,000) × 100 = 5%. Current pay must be greater than zero.
When to use it
Common use cases
- Turn a 5% raise into a new annual or hourly figure
- See how large a raise is when you already have the new pay
- Compare a posted salary to your current pay
Limits
Assumptions and limits
- The raise applies once to the entered current pay. Taxes and benefits are not deducted.
- Use the same period on both sides: annual with annual, hourly with hourly.
- Currency display uses USD rounding to 2 decimal places.
Questions
Frequently asked questions
Does this include taxes?
No. The result is the stated pay before tax, retirement, or benefit deductions.
Can I use hourly pay?
Yes, if both amounts are hourly. A 5% raise on $20/hour is $21/hour. Do not mix an annual salary with an hourly rate.
Sources
Sources and review
- Investopedia — percentage change
Raise % as (new − old) ÷ old × 100; new = old × (1 + rate)
Accessed August 25, 2026