Pay Raise Calculator
Use your own numbers after reviewing the formula and worked example.
Quick answer
A percentage raise multiplies old pay by one plus the raise rate.
Formula or method
Keep units, percentages and time periods consistent. The formula is useful as a transparent check on the calculator result and helps explain why changing one input changes the answer.
Step-by-step
- Convert the raise percent to decimal form.
- Multiply old pay by the raise rate to find the increase.
- Add the increase to old pay.
- Convert annual increases to monthly or pay-period amounts if useful.
Worked example
A 6% raise on $60,000 adds $3,600 and produces a new annual salary of $63,600.
How to interpret the result
The gross percentage increase does not necessarily equal the change in take-home pay after taxes and benefits.
When the answer is used for a purchase, loan, payroll decision, construction order, school grade, health estimate or other real-world choice, verify the assumptions that matter in that context. Accurate arithmetic still depends on accurate inputs.
Common mistakes
- Adding 6 dollars instead of 6%.
- Applying the raise to net pay when the quoted raise is gross.
- Assuming net pay rises by the identical percentage.
Frequently asked questions
How do I find the raise percentage from old and new pay?
Subtract old from new, divide by old, then multiply by 100.
Can the formula handle a pay cut?
Yes; use a negative percentage or one minus the reduction rate.
Does it work for hourly wages?
Yes.