Salary Increase Calculator
Use this salary increase calculator as a pay raise calculator for a percentage increase in salary, including how much is a 3% raise in dollars. It turns a percent raise, a dollar raise, or a new salary into yearly, monthly, biweekly, weekly, and hourly gross pay, and it converts hourly to annual. Compare the paycheck difference with an inflation rate you enter.
How to use
- Choose Percent or dollar raise, or New salary to percent.
- Enter current pay and the period: hourly, weekly, biweekly, monthly, or yearly. Hourly pay becomes annual pay using hours per week × 52.
- For a raise, enter a percent or a dollar amount in that same period. For a new salary, enter the new pay in that period.
- Set hours per week. Optionally enter an inflation rate, such as 3 for 3%. Leave it blank to skip. No inflation rate is built in.
- Read new gross pay, the monthly and biweekly paycheck difference, and, if you entered a rate, the raise versus inflation.
Formula
Yearly pay is the base. Hourly yearly pay is rate × hours per week × 52. Weekly pay × 52, biweekly pay × 26, and monthly pay × 12 also become yearly pay. A percent raise is current yearly × percent ÷ 100. A percentage increase in salary from a new salary is (new yearly − current yearly) ÷ current yearly × 100. The monthly paycheck difference is new monthly pay minus current monthly pay, and the biweekly difference uses yearly ÷ 26 the same way. Raise versus inflation uses only the rate you type: real change = (1 + raise percent ÷ 100) ÷ (1 + inflation percent ÷ 100) − 1.
Example. How much is a 3% raise on $50,000 a year? New yearly pay is $51,500.00, which is $1,500.00 more. Monthly gross is $4,291.67 (a $125.00 paycheck difference) and biweekly gross is $1,980.77 (a $57.69 paycheck difference).
Example. A $22 an hour wage at 40 hours a week is $45,760.00 a year. A 5% raise makes the rate $23.10 an hour and the year $48,048.00, or $4,004.00 a month ($190.67 more) and $1,848.00 biweekly ($88.00 more).
Example. A new salary of $65,000.00 from $60,000.00 is an 8.33% percentage increase in salary. The dollar increase is $5,000.00. Enter 3 for inflation and the real change is 5.18%.
What is a good raise?
What counts as a good raise depends on the offer, the pay period, and prices you pay. The same percent is a different dollar amount on different salaries, and an hourly bump can look small until you multiply by hours per week and 52 weeks.
Compare three figures this page calculates: the new gross pay, the monthly or biweekly paycheck difference, and the real change after an inflation rate you type. If that rate is higher than the raise, the real change is negative. That result is arithmetic. It is not a suggestion to accept or turn down an offer.
This pay raise calculator does not quote typical raises, a cost-of-living index, or what an employer should pay. Confirm the new rate on the offer or with payroll.
Frequently asked questions
How much is a 3% raise?
On a $50,000 yearly salary, a 3% raise is $1,500.00 a year. New yearly pay is $51,500.00, which is $4,291.67 a month and $1,980.77 biweekly. The monthly paycheck difference is $125.00 and the biweekly difference is $57.69. A different starting salary changes the dollar amount.
How do I calculate a percentage increase in salary?
Percentage increase in salary is (new yearly pay − current yearly pay) ÷ current yearly pay × 100. A percent raise uses the reverse: new yearly pay = current yearly pay × (1 + percent ÷ 100). This pay raise calculator does both.
How do I turn a new salary into a percent raise?
Choose New salary to percent, then enter current pay and the new pay in the same period. Going from $60,000.00 to $65,000.00 a year is an 8.33% raise, or $5,000.00 more.
How do I convert hourly pay to annual pay with a raise?
Set the pay period to hourly and enter hours per week. $22.00 an hour at 40 hours a week is $22.00 × 40 × 52 = $45,760.00 a year. A 5% raise makes that $23.10 an hour and $48,048.00 a year.
What is the monthly or biweekly paycheck difference?
Monthly gross is yearly pay ÷ 12. Biweekly gross is yearly pay ÷ 26. The paycheck difference is the new amount minus the current amount. On $50,000 with a 3% raise, that is $125.00 a month and $57.69 biweekly. A semi-monthly schedule (24 paychecks) is not used here.
How do I compare a raise with inflation?
Enter the inflation rate you want to compare. Nothing on this page is a published CPI number. Real change = (1 + raise percent ÷ 100) ÷ (1 + inflation percent ÷ 100) − 1. A 5% raise with 3% inflation is a 1.94% real change. Leave the field blank to skip it.
Does this pay raise calculator show gross pay or take-home pay?
Gross pay only. It does not subtract taxes, retirement contributions, health insurance, or other deductions, and it does not add overtime, bonuses, or commissions.
What is a good raise?
There is no single percent that counts as a good raise. Compare the new gross pay, the paycheck difference, and the real change after an inflation rate you enter. This calculator does not quote averages or tell you whether to accept an offer.
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