Pay Raise Calculator
Enter your current pay and the percentage raise you are getting or asking for. The calculator returns your raise amount, your new pay, and how much more that works out to each month.
How to calculate pay raise
A percentage raise increases your pay by that share of your current amount. Multiply your current pay by the raise percentage divided by 100 to get the raise amount, then add it back to find your new pay. Dividing the annual figures by 12 shows the change in monthly terms. These are gross figures before tax, and a higher gross salary can move part of your income into a higher tax bracket, so your take-home rises by a little less than the gross raise.
Raise amount = current pay x (raise% / 100); new pay = current pay + raise amount
Worked example
You earn $50,000 a year and are offered a 5% raise.
- Raise amount: $50,000 x (5 / 100) = $2,500
- New annual pay: $50,000 + $2,500 = $52,500
- New monthly pay: $52,500 / 12 = $4,375
- Extra per month: $2,500 / 12 = about $208
Result: A 5% raise lifts your pay to $52,500 a year, about $208 more per month before tax.
Frequently asked questions
How do I calculate a percentage pay raise?
Multiply your current pay by the raise percentage divided by 100, then add the result to your current pay. A 5% raise on $50,000 is $50,000 x 0.05 = $2,500, giving a new salary of $52,500.
How do I convert a raise amount into a percentage?
Divide the raise amount by your current pay and multiply by 100. A $2,500 raise on a $50,000 salary is 2,500 / 50,000 x 100 = 5%. This is useful when an offer is quoted as a dollar figure rather than a percentage.
Does a raise change my tax bracket?
Only the portion of income above a bracket threshold is taxed at the higher rate, so a raise never reduces your take-home pay. Your gross increase is taxed at your marginal rate, which means your net raise is somewhat smaller than the gross figure shown here.
Is a cost-of-living raise the same as a merit raise?
Not quite. A cost-of-living adjustment (COLA) keeps your pay in step with inflation and applies broadly, while a merit raise rewards individual performance. Both are entered the same way here: as a percentage of your current pay.