Turn a raise into real numbers
A raise is usually offered as a percent, but you live on amounts. Is 4.5% worth celebrating? It depends what it is 4.5% of. This salary increase calculator shows your new yearly salary and what the raise adds each month and each week, before tax.
If you already know the new figure, from a job offer or a new contract, compare the two salaries instead and get the raise as a percent. That is the number to set against inflation or against what others in your field are getting.
How to use it
- Choose Apply a raise if you know the percent, or Compare two salaries if you know both amounts.
- Enter your current yearly salary before tax.
- Enter the raise percent, or the new salary.
- Read the new salary or the raise percent, plus what changes per year, month and week.
The formulas
new salary = old salary × (1 + raise ÷ 100)
raise percent = (new salary − old salary) ÷ old salary × 100
monthly increase = yearly increase ÷ 12Everything is worked out in whole cents. The weekly figure divides the yearly increase by 52; if you are paid every two weeks, double it.
Worked example: a 4.5% raise on 48,000
- Increase: 4.5% of $48,000 = $2,160.00
- New salary: $48,000 + $2,160 = $50,160.00
- Per month: $2,160 ÷ 12 = $180.00
A 4.5% raise lifts a $48,000 salary to $50,160, which is $180 more a month and about $41.54 more a week, before tax. If the offer had been $51,000 instead, comparing the two salaries shows a 6.25% raise.
What a raise is worth on different salaries
| Salary | 3% | 5% | 10% |
|---|---|---|---|
| 30,000 | 900 | 1,500 | 3,000 |
| 45,000 | 1,350 | 2,250 | 4,500 |
| 60,000 | 1,800 | 3,000 | 6,000 |
| 80,000 | 2,400 | 4,000 | 8,000 |
| 100,000 | 3,000 | 5,000 | 10,000 |
Raises add up over time because each one builds on the last. Three raises of 4% in a row lift a salary by 12.49%, not 12%.
When you are weighing a job offer against a raise where you are, compare like with like. Put both salaries into Compare two salaries, then think about the things the number leaves out: the commute, the hours you are expected to work, paid leave and any benefits. A smaller raise with a shorter week can be worth more per hour than a bigger one.
Before you accept a number
- Compare it with prices. If prices rose 3% over the year, a 3% raise keeps your pay where it was in real terms rather than moving it forward.
- Ask whether it is the base salary or a one-off. A bonus does not carry into next year; a raise does.
- Remember tax. Your take-home increase will be smaller than the figures here, sometimes noticeably so if the raise moves part of your pay into a higher tax band.
- For hourly pay, convert first. The hourly to salary calculator turns an hourly rate into a yearly figure.
Frequently asked questions
How do I calculate a salary increase?
Multiply your current salary by the raise as a decimal to get the increase, then add it on. A 5% raise on 52,000 is 0.05 × 52,000 = 2,600, so the new salary is 54,600. Or multiply by 1.05 in one step. Enter your salary and the percent above and the calculator shows both.
How do I work out my raise percentage?
Take your old salary from your new one, divide by the old salary, and multiply by 100. Going from 48,000 to 51,000 is 3,000 ÷ 48,000 × 100 = 6.25%. Choose Compare two salaries and the calculator does this, along with the monthly and weekly difference.
How much is a 3% raise per month?
Divide the yearly increase by 12. On a 40,000 salary, a 3% raise is 1,200 a year, which is 100 a month before tax. On 60,000 it is 150 a month. The calculator lists the monthly and weekly figures for any salary and raise you enter.
Is my raise before or after tax?
Salary raises are almost always quoted before tax, and this calculator works the same way. Your take-home increase will be smaller once income tax and other deductions come off. How much smaller depends on where you live and how you are paid, so check a payslip after the raise starts.
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