Pay Raise Calculator – Calculate Your New Salary or Hourly Pay

Percentage Raise Calculation

For percentage raises, the formula is:

Example: Percentage Raise

If you earn $75,000 per year and receive a 5% raise:

• Raise amount: $75,000 × 0.05 = $3,750
• New salary: $75,000 + $3,750 = $78,750
• Percentage increase: 5%

Fixed Amount Raise Calculation

For fixed amount raises, simply add the raise to your current salary:

Example: Fixed Amount Raise

If you earn $75,000 per year and receive a $5,000 raise:

• New salary: $75,000 + $5,000 = $80,000
• Percentage increase: ($5,000 ÷ $75,000) × 100 = 6.67%
• Annual increase: $5,000

Important Considerations

• Taxes: Your new salary is before taxes. Your actual take-home pay will depend on tax brackets, deductions, and your location.
• Benefits: Some raises may come with changes to benefits, which can affect your total compensation package.
• Timing: Raises may take effect at different times (annual review, promotion date, start of fiscal year, etc.).
• Overtime: If you're hourly and work overtime, your overtime pay will also increase proportionally.
• Negotiation: When negotiating, consider both percentage and fixed amount options to find the best fit for your situation.