Pay Raise Calculator
Wondering how a raise will impact your paycheck? Use this free Pay Raise Calculator to find out. Just enter your current pay and raise details, and it will instantly show your new hourly or annual earnings. Whether you’re negotiating a raise or planning ahead, this tool helps you make confident, informed decisions.
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How to Calculate a Salary Increase Using the Calculator
Whether you’re paid hourly or receive an annual salary, this calculator makes it easy to see how a raise changes your income. You can quickly compare your old and new pay without doing any math by hand. Follow these steps based on how you’re paid:
If You’re Paid Hourly
Use this mode if your paycheck depends on your hourly rate.
- Step 1: Select the “Hourly” tab.
- Step 2: Enter your current hourly rate (e.g., 5000).
- Step 3: Type in your pay raise as a percentage (e.g., 50%).
- Step 4: Enter how many hours you work per week (e.g., 40).
The calculator will automatically show your new hourly, weekly, and annual pay after the raise.
If You’re Paid an Annual Salary
Use this mode if you’re paid a fixed amount per year.
- Step 1: Select the “Salary” tab.
- Step 2: Enter your current annual salary (e.g., 52,000).
- Step 3: Type in your raise percentage (e.g., 5%).
The calculator will instantly update your new annual salary, showing how much more you’ll earn each year.
Example: How to Calculate a Salary Increase
Let’s say you’re currently earning $52,000 a year and your employer offers you a 5% raise. Here’s how that raise would break down:
- Current salary: $52,000
- Raise percentage: 5%
- Raise amount: $52,000 × 0.05 = $2,600
- New annual salary: $52,000 + $2,600 = $54,600
If you want to see this in monthly terms, just divide the new salary by 12:
- New monthly pay: $54,600 ÷ 12 = $4,550
This gives you a clear picture of how much extra money you’ll take home each month after the raise. You can use the calculator to test different raise percentages and instantly see the results. It’s a simple way to plan, negotiate, or just understand how your earnings are changing.
When Can You Expect a Pay Raise?
Most people don’t know exactly when a raise is coming, it depends on your role, company policy, and performance. But there are common times when raises usually happen. Knowing these can help you prepare and ask with confidence.
Here are some typical situations when a pay raise might be on the table:
- Annual performance reviews: Many companies review salaries once a year, usually tied to your performance or company profits.
- Promotion or new responsibilities: If you’ve taken on more work, a raise should reflect that growth. Don’t wait—advocate for it.
- End of a probation period: If you were hired on a trial basis, raises often follow once you’re fully onboarded.
- Cost-of-living adjustments: Some employers adjust pay each year to keep up with inflation.
- Retention offers: If the company wants to keep you from leaving or match another offer, they may offer a raise to retain you.
- Company milestones: After strong earnings or a successful project, leaders may reward the team with raises or bonuses.
If you’re unsure when to expect one, check your employee handbook, ask your manager during your next check-in, or use your next review as a chance to bring it up.
Frequently Asked Questions (FAQ)
How do I calculate a 5% pay raise?
To calculate a 5% raise, multiply your current salary by 0.05. Then add that number to your current salary.
Example: If you make $1,000 a month, 0.05 × $1,000 = $50. Your new monthly pay would be $1,050.
Is a 10% annual raise the same as a 10% monthly raise?
Yes. A 10% raise applies evenly across time periods. If your salary increases by 10% annually, monthly, or hourly, the result is a consistent 10% increase to your income in each period.
What pay raise equals an extra month’s salary?
To gain one extra month of salary by the end of the year, you need an 8.33% raise.
That’s because 1 out of 12 months is roughly 8.33% of your total annual income.
Example: If you make $1,000 a month, an 8.33% raise gives you an extra $1,000 over the course of the year.
What is a typical annual pay raise?
Most companies give annual raises between 3% and 5%, depending on your role, performance, and company budget. Exceptional raises, like 10% or more, usually follow a promotion or major performance milestone.
How often should employees get a raise?
Raises are often tied to annual performance reviews, but some companies offer them every 12–18 months. Promotions, skill growth, or inflation adjustments can also trigger off-cycle raises.
Will you owe taxes if you get a raise?
Yes, any raise counts as taxable income. It may push you into a higher tax bracket, but that doesn’t mean all your income is taxed at the higher rate—only the portion that exceeds the threshold. You’ll still take home more overall.
Edgardo Ocampo
Edgardo is a digital marketing strategist with over 15 years of experience in SEO, paid advertising, and content writing. He helps entrepreneurs grow service-based businesses through smart, practical marketing strategies that get results.