A raise is easy to describe and surprisingly easy to misjudge. “Three percent” sounds small until you see it as a yearly figure; “a dollar an hour” sounds modest until you multiply it by 2,080 working hours. This calculator shows your new pay in the same terms as your paycheck, then converts it to monthly and annual amounts so you can compare offers, plan a budget or check a raise against inflation.
How to use the pay raise calculator
- Enter your current pay and choose how it is stated: per hour, per week, every two weeks, twice a month, per month or per year.
- If you are paid hourly, set your weekly hours. The annual figure uses hours × 52 weeks, so 40 hours a week means 2,080 hours a year.
- Choose how the raise is given — as a percentage, or as a dollar amount in the same pay period (for example, $1.25 more per hour).
- Read the results: new pay per period, the increase, the raise as a percentage, and the new monthly and annual totals.
You can enter a negative raise to see the effect of a pay cut.
Pay raise formulas
Raise % = (New pay − P) ÷ P × 100
Annual pay = pay per period × periods per year
- P — current pay for one period
- r — raise percentage
- Periods per year — hourly: hours per week × 52; weekly: 52; every two weeks: 26; twice a month: 24; monthly: 12
“Every two weeks” and “twice a month” are not the same: biweekly pay gives 26 paychecks a year, semimonthly gives 24. A $2,000 biweekly check is $52,000 a year; a $2,000 semimonthly check is $48,000.
Worked examples
Hourly raise
You earn $20.00 an hour, 40 hours a week, and get a 5% raise.
- New hourly rate: 20.00 × 1.05 = $21.00
- Increase: $1.00 an hour
- New annual pay: 21.00 × 40 × 52 = $43,680 — that is $2,080 more per year
What percent is a dollar raise?
Your salary goes from $50,000 to $53,000. The raise is 3,000 ÷ 50,000 × 100 = 6%.
Raise amounts at a glance
Yearly increase, before taxes, for common salaries and raise percentages.
| Current salary | 2% | 3% | 4% | 5% | 10% |
|---|---|---|---|---|---|
| $35,000 | $700 | $1,050 | $1,400 | $1,750 | $3,500 |
| $45,000 | $900 | $1,350 | $1,800 | $2,250 | $4,500 |
| $55,000 | $1,100 | $1,650 | $2,200 | $2,750 | $5,500 |
| $65,000 | $1,300 | $1,950 | $2,600 | $3,250 | $6,500 |
| $80,000 | $1,600 | $2,400 | $3,200 | $4,000 | $8,000 |
| $100,000 | $2,000 | $3,000 | $4,000 | $5,000 | $10,000 |
Hourly raises per year (40 hours a week)
| Raise per hour | Extra per week | Extra per month | Extra per year |
|---|---|---|---|
| $0.50 | $20.00 | $86.67 | $1,040 |
| $1.00 | $40.00 | $173.33 | $2,080 |
| $1.50 | $60.00 | $260.00 | $3,120 |
| $2.00 | $80.00 | $346.67 | $4,160 |
| $3.00 | $120.00 | $520.00 | $6,240 |
| $5.00 | $200.00 | $866.67 | $10,400 |
Things to keep in mind
- These are gross (pre-tax) figures. Your take-home increase is smaller after income and payroll taxes.
- Compare against inflation. A 3% raise in a year when prices rose 4% is a cut in buying power. The Inflation Calculator shows how much prices have changed between years.
- Raises compound. Five years of 3% raises add up to about 15.9%, not 15%, because each raise applies to the previous year’s higher pay.
- Overtime and bonuses are separate. If your annual pay includes overtime, the raise usually applies to your base rate, and overtime is paid at 1.5 times the new rate.
Switching between hourly and salaried roles? The Salary to Hourly Calculator and Hourly to Salary Calculator convert either way.
Frequently asked questions
How do I calculate a percentage raise?
Multiply your current pay by 1 plus the raise as a decimal. A 4% raise on $55,000 is 55,000 × 1.04 = $57,200. The raise itself is 55,000 × 0.04 = $2,200 a year.
What percent is my raise?
Divide the dollar increase by your old pay and multiply by 100. Going from $18.00 to $19.50 an hour is a 1.50 ÷ 18.00 = 8.33% raise. Choose “Dollar amount” in the calculator to see this automatically.
How much is a $1 an hour raise per year?
At 40 hours a week for 52 weeks, $1 more an hour is 2,080 × $1 = $2,080 more per year before taxes.
What is a typical annual raise?
It varies by employer, industry and year. Compare your raise with inflation over the same period — if prices rose faster than your pay, your buying power fell. The Inflation Calculator shows that comparison.
Is the new pay before or after taxes?
Before taxes. Your take-home increase will be smaller once federal, state and payroll taxes are taken out, and depends on your tax situation.