How is the new salary calculated?

Your new salary equals your current salary multiplied by (1 + raise percentage / 100). For example, a 5% raise on 50,000 gives 50,000 × 1.05 = 52,500.

How much will my pay go up?

The raise amount is your current salary times the raise percentage divided by 100. A 5% raise on 50,000 is 2,500.

Is this before or after tax?

These are gross (pre-tax) amounts. Your actual take-home increase will be lower after income tax and other deductions.

Pay Raise Calculator

What the Pay Raise Calculator Does

This Pay Raise Calculator shows your new salary after a percentage increase, plus the dollar amount the raise adds to your pay. You enter your current salary and the raise percentage, and it returns both the increase and your updated total.

It is useful for employees comparing a promotion or annual review offer, managers budgeting a salary increase, and anyone negotiating a number. Because it works on any pay figure, you can run it on an annual salary, a monthly amount, or an hourly rate.

How a Pay Raise Is Calculated

A percentage raise multiplies your current pay by the raise rate. The two formulas are:

Increase = current salary x (raise % / 100)

New salary = current salary x (1 + raise % / 100)

The two are linked: the new salary is simply your current salary plus the increase. Dividing the raise percentage by 100 converts it into a decimal (for example, 5% becomes 0.05) so it can be multiplied directly.

Worked Example

Suppose your current salary is $60,000 and you are offered a 5% raise.

Increase = 60,000 x (5 / 100) = 60,000 x 0.05 = $3,000.

New salary = 60,000 x (1 + 0.05) = 60,000 x 1.05 = $63,000.

So the raise adds $3,000 per year, bringing your salary to $63,000. If you are paid monthly, that is $250 more per month before taxes and deductions ($3,000 / 12).

Reversing the Math: Finding the Raise Percentage

If you already know the old and new figures and want the percentage, rearrange the formula:

Raise % = (new salary - current salary) / current salary x 100.

Using the numbers above: (63,000 - 60,000) / 60,000 x 100 = 3,000 / 60,000 x 100 = 5%. This is handy for checking an offer letter or comparing two job offers on equal footing.

Tips and Common Mistakes

A few details change how much a raise is really worth:

Gross vs. net: The calculator works on gross (pre-tax) pay. Your take-home increase is smaller once income tax and other deductions are applied.
Inflation: A raise below the inflation rate is a cut in real terms. If prices rose 4% and your raise is 3%, your buying power fell.
Stacking percentages: Two consecutive raises do not simply add. A 5% raise followed by another 5% gives about 10.25%, not 10%, because the second raise applies to the already-higher salary.
Decimal placement: Enter 5 for 5%, not 0.05. The tool divides by 100 for you, so entering 0.05 would calculate a 0.05% raise.
Match the time unit: If you input an hourly rate, the result is the new hourly rate, not an annual figure.

Factors That Affect Your Result

The output depends entirely on two inputs, so accuracy matters. Use your base salary, not total compensation that includes bonuses or benefits, unless the raise specifically applies to that total.

Also confirm whether the percentage is annual or covers a different period, and whether it takes effect mid-year, which would prorate the actual dollars you receive in the first year.