Pay Raise Calculator
A 4% raise on 60,000 a year makes 62,400, which is 2,400 more a year, 200 a month and 1.15 an hour (2,080 hours). If prices rose 3% over the same year, the real raise is 0.97%.
How to use
- Choose whether you enter an hourly rate or a yearly salary, then type your current pay.
- Pick how the raise is given: a percent, a fixed amount, or the new pay itself to find the percent.
- Check the hours per week and weeks per year. The defaults are 40 and 52. They only matter for the weekly, hourly and yearly conversions.
- Add a yearly inflation rate if you want to see the raise after prices. Leave it empty to skip.
- Read the new pay and what the raise adds per year, month, week and hour.
How it works
New pay = current pay x (1 + raise % / 100). With a fixed amount, new pay = current pay + amount. Going backwards, raise % = (new pay / current pay - 1) x 100.
Yearly pay = hourly rate x hours per week x weeks per year. Monthly pay = yearly pay / 12, weekly pay = yearly pay / weeks per year, and hourly pay = yearly pay / (hours per week x weeks per year). The change per period is the new figure minus the old one.
Real raise % = ((1 + raise %) / (1 + inflation %) - 1) x 100. A 4% raise with 3% inflation leaves about 0.97% of extra buying power, not 1%. To stay level with prices your pay has to grow by the inflation rate itself.
All figures are before tax. The tool does not know your tax bracket, bonuses or overtime.
FAQ
How do I calculate a pay raise percentage?
Divide the new pay by the old pay, subtract 1 and multiply by 100. Going from 50,000 to 53,000 gives 53,000 / 50,000 = 1.06, so a 6% raise. Choose "New pay" in the tool to do this for you.
How do I turn an hourly raise into a yearly one?
Multiply the raise per hour by hours per week and weeks per year. A 1.50 an hour raise on a 40 hour week for 52 weeks adds 1.50 x 2,080 = 3,120 a year.
What is a typical annual raise?
Pay surveys in the US have usually put merit raises for staying in the same job at around 3% to 4% a year, with larger jumps for promotions or changing employers. Your own number depends on your industry and the year, so treat this as a rough guide only.
Does a raise beat inflation?
Only if the raise percent is above the inflation rate. Enter the inflation rate and the tool shows the real raise. For past price changes, use the inflation calculator to look up how much a dollar amount lost between two years.
Why is my take-home raise smaller than the number here?
The tool works before tax. A raise can push part of your income into a higher bracket, and payroll deductions apply to the extra pay too. Use a take-home pay calculator for the after-tax figure.