WiseCalcs

Pay raise calculator

Enter your current salary and the raise as a percentage. The calculator shows your new salary and how much more you'll earn each year and each month.

Use it to see your new salary and the increase from a percentage pay raise.

USD
%

New salary

$52,000

Yearly increase
$2,000
Monthly increase
$167

The result updates as you type. The headline is your new salary; the others show the yearly and monthly increase before tax.

How does it work?

A negative percentage models a pay cut. Figures are gross (before tax); take-home change will be smaller after deductions.

Pay raise formula

new=S×(1+r100)\text{new} = S \times \left(1 + \tfrac{r}{100}\right)
new
New salary after the raise.
S
Current salary.
r
Raise as a percentage.

A 50,000 salary with a 4% raise becomes 50,000 × 1.04 = 52,000 — a 2,000 yearly increase, about 167 a month.

Method & sources

The new salary is the current salary times one plus the raise percentage. The monthly increase splits the yearly increase across twelve months. Figures are gross, before tax and deductions.

Sources

Where this method comes from — use these references to understand the formula, assumptions, and limits.

How we calculate

  • The new salary is the current salary times one plus the raise percentage.
  • The monthly increase splits the yearly increase across twelve months.
  • Figures are gross, before tax and deductions.
  • A negative percentage models a pay cut.

Rounding

Money is shown as whole units. The calculation uses full precision.

What this calculator does

A raise is usually quoted as a percentage. This calculator applies that percentage to your current salary to give the new figure, then works out the increase per year and per month so the change is easy to picture.

How to use it

  1. Enter your current annual salary.
  2. Enter the raise as a percentage.
  3. Read the new salary.
  4. Check the yearly and monthly increase.

A worked example

A 50,000 salary with a 4% raise becomes 52,000 — a 2,000 increase a year, or about 167 a month before tax.

Raises and inflation

A raise only increases your spending power if it beats inflation. If prices rose 3% and your raise is 4%, your real gain is about 1%. Below inflation, a nominal raise is a real pay cut.

Common mistakes

  • Reading the new salary as take-home — these figures are gross.
  • Comparing a raise without considering inflation.
  • Confusing a percentage raise with a flat amount.

When it's useful

Before a review, when weighing a job offer, or to translate a percentage raise into real money each month.

FAQ

How is the new salary calculated?
The current salary is multiplied by one plus the raise percentage. A 4% raise multiplies by 1.04.
Are these figures before or after tax?
Before tax. Your take-home increase will be smaller once deductions are applied.
Can I enter a pay cut?
Yes. Enter a negative percentage and the new salary and increase will be lower than the current salary.
How do I find the percentage from two salaries?
Divide the increase by the old salary and multiply by 100. From 50,000 to 52,000 is 2,000 ÷ 50,000 × 100 = 4%.
Does a raise beat inflation?
Only if the percentage is higher than the inflation rate. Otherwise your real spending power falls despite a higher number.
Can I share a calculation?
Yes. Use Share to copy a link that reopens the calculator with the same salary and raise.

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<iframe src="https://wisecalcs.com/embed/en/pay-raise-calculator" width="100%" height="520" style="border:0" loading="lazy"></iframe> <p>Calculator from <a href="https://wisecalcs.com/en/finance/pay-raise-calculator">WiseCalcs</a></p>