How to calculate a pay raise
Enter your current annual salary and the raise percentage you've been offered. The calculator finds the raise amount, your new salary, and the extra per month so you can see the real difference in your budget.
The formula
Increase = Salary × raise% ÷ 100 · New salary = Salary + Increase · Extra/month = Increase ÷ 12
Worked example
A 5% raise on a $50,000 salary:
- Raise amount: $50,000 × 5 ÷ 100 = $2,500/year
- New salary: $52,500
- Extra per month (gross): ≈ $208
Hourly pay raise
The same percentage works on an hourly rate. Multiply your rate by the raise percentage and add it on. For example, a 5% raise on $20/hour adds $1.00, giving $21.00/hour. Over a 40-hour week — about 2,080 hours a year — that's roughly $2,080 more per year. To see it as an annual figure, multiply your hourly rate by your yearly hours and enter that as your salary above.
Common raises at a glance
Typical raise percentages on common salaries (gross, before tax):
| Current salary | 3% raise | 5% raise | 10% raise |
|---|---|---|---|
| $40,000 | $41,200 (+$100/mo) | $42,000 (+$167/mo) | $44,000 (+$333/mo) |
| $50,000 | $51,500 (+$125/mo) | $52,500 (+$208/mo) | $55,000 (+$417/mo) |
| $60,000 | $61,800 (+$150/mo) | $63,000 (+$250/mo) | $66,000 (+$500/mo) |
Enter your own numbers above for any salary and raise percentage.
Pay rise or salary increase — same maths
Whether you call it a pay rise (UK), a pay raise (US), or a salary increase, the calculation is identical: the new figure is your current pay plus the raise percentage. This tool works as a salary increase calculator for annual salaries and hourly rates alike.
Check it beats inflation
A raise only increases your buying power if it's bigger than inflation. Your real raise is roughly the raise percentage minus the inflation rate. If prices rose 4% and your raise is 3%, you're about 1% worse off in real terms — so compare against current inflation before celebrating.
Common mistakes to avoid
Treating the gross monthly increase as take-home (tax reduces it). Ignoring inflation when judging whether a raise is "good." Comparing a one-off bonus to a permanent salary raise — they're not the same.
Frequently asked questions
What is a 5% raise on $50,000?
An extra $2,500 a year, for a new salary of $52,500 — about $208 more per month.
How do I calculate an hourly pay raise?
Multiply your hourly rate by the raise %. A 5% raise on $20/hour adds $1.00 → $21.00/hour, about $2,080 more a year at 40 hours/week.
Is a "pay rise" the same as a "pay raise"?
Yes — "pay rise" (UK) and "pay raise" (US) are the same thing. This salary increase calculator handles both.
Is this before or after tax?
It works on gross salary. Your take-home increase will be a bit lower after taxes.
Does my raise beat inflation?
Only if it's higher than the inflation rate. A 3% raise during 4% inflation is a real-terms cut.
What's a "real" raise?
Roughly the raise percentage minus inflation — the change in your actual buying power.
How much is it per month?
Annual increase ÷ 12. A $2,500 raise is about $208/month before tax.
Is my data saved?
No. Everything runs in your browser; nothing is uploaded.