Quick answerA salary increase calculator measures the dollar change and percentage change between an old and new salary. It can also project a new salary from a proposed raise percentage.
Calculating a pay raise
A percentage raise is measured against the original salary. Subtract the old salary from the new salary to find the increase, then divide by the old salary and multiply by 100. Using the new salary as the denominator would understate the raise.
The same logic can run forward. Multiply the current salary by one plus the raise rate to estimate the new annual amount. Converting annual pay to monthly, weekly, or hourly figures can help with budgeting, but the conversion should match the employer's pay schedule and paid hours.
Gross salary versus take-home pay
Salary usually means gross pay before income tax, social contributions, insurance, retirement deductions, and other payroll items. A 6 percent gross raise does not guarantee that take-home pay rises by exactly 6 percent because deductions may change.
Inflation also affects purchasing power. A nominal raise can increase the number on a payslip while producing a smaller real improvement. For negotiations, compare the raise with changed responsibilities, market rates, benefits, and the full compensation package.
How to use this salary increase calculator
- Choose whether you know the raise percentage or the new salary.
- Enter current annual salary and pay frequency.
- Review the annual and per-pay-period change before taxes and deductions.
Formula and method
Annual pay is divided into equal pay periods. Taxes, bonuses, benefits, overtime, unpaid time, and payroll-calendar anomalies are excluded.
Salary increase example
If annual salary rises from $52,000 to $56,160, the dollar increase is $4,160. Dividing $4,160 by $52,000 gives 0.08, so the raise is 8 percent.
The monthly gross equivalent rises from about $4,333.33 to $4,680, a difference of about $346.67 per month. Actual payslip amounts will depend on pay frequency and deductions.
Calculate a pay raise from salary or percentage
If you know the percentage, choose that mode and enter current annual salary. If you know the new annual offer instead, compare it with current annual salary. Avoid comparing an annual amount with a monthly one.
| Raise | New annual salary | Annual increase | Monthly increase (12 periods) |
|---|---|---|---|
| 3% | $61,800 | $1,800 | $150 |
| 5% | $63,000 | $3,000 | $250 |
| 10% | $66,000 | $6,000 | $500 |
A move from $60,000 to $63,000 is a 5% raise: divide the $3,000 increase by the old $60,000 salary. For a standard 26-period biweekly schedule, that increase is about $115.38 per period. Twice-monthly pay uses 24 periods instead, giving $125.
All amounts above are gross. A payroll deduction, tax change or bonus can make the change in take-home pay different. For worked hours and a separate overtime estimate, use the time card and overtime calculator.
Common mistakes to avoid
- Dividing the increase by the new salary instead of the old salary.
- Comparing one monthly amount with an annual amount.
- Treating gross salary growth as identical to take-home-pay growth.
- Ignoring bonuses or reduced benefits when comparing total compensation.
Accuracy and practical limits
Percentage and gross-pay conversions are exact for the figures entered. Taxes, deductions, overtime, bonuses, unpaid time, exchange rates, and employer-specific payroll calendars are outside the calculation.
Method basis: Standard mathematical definitions and the assumptions stated above. See our editorial and testing standards.
Frequently asked questions
How many periods are biweekly?
A standard year has 26 biweekly pay periods, though some payroll calendars occasionally contain 27.
Is a 10% raise the same after tax?
No. The calculator shows gross pay only; withholding and marginal tax effects vary.
Can I calculate a pay cut?
Yes. Enter a negative percentage or a new salary below the current salary.