How to calculate a pay raise
Multiply current pay by one plus the raise percentage divided by 100. The difference between the new pay and current pay is the raise amount.
Example: 5% hourly raise
A 5% raise on $25/hour adds $1.25 per hour, producing a new hourly rate of $26.25.
Example: 5% salary raise
A 5% raise on a $60,000 salary is $3,000, producing a new salary of $63,000. The new monthly equivalent is $5,250 before taxes and deductions.
How much is a raise per year?
For hourly pay, annual impact depends on the hours and weeks you enter. For salary mode, the annual impact is the raise amount on the annual salary.
Percentage raise vs dollar raise
A percentage raise scales with the current pay amount. A dollar raise is the actual increase in dollars after applying that percentage.
Is a raise calculated before or after taxes?
This calculator uses gross pay values before taxes, benefits, deductions, and other payroll adjustments.
Pay Raise Calculator FAQ
How much is a 5% raise?
A 5% raise adds five cents per dollar of current pay. For example, $25/hour becomes $26.25/hour.
How do I calculate my new hourly rate after a raise?
Multiply your current hourly rate by 1 plus the raise percentage divided by 100.
How do I calculate a salary increase?
Multiply current annual salary by the raise percentage to get the raise amount, then add it to current salary.
What is a 3% raise on $60,000?
A 3% raise on $60,000 is $1,800, for a new salary of $61,800.
Does this calculator include taxes?
No. Results are gross pay estimates before taxes and deductions.
How much more will I earn per year?
In hourly mode, annual increase depends on your hours per week and weeks per year. In salary mode, it is the annual raise amount.