How do I calculate a salary increase percentage?

Subtract the old salary from the new one, divide by the old salary, and multiply by 100. Example: $65,000 to $71,500 is (71,500 − 65,000) ÷ 65,000 × 100 = a 10% rise.

How do I work out my new salary after a raise?

Multiply your current salary by (1 + raise ÷ 100). A 4% rise on $65,000 is 65,000 × 1.04 = $67,600.

What is a good annual pay rise?

It depends on your market and inflation. A rise below the inflation rate is a real-terms pay cut, so compare your percentage against current inflation where you live rather than against a fixed benchmark.

How much is a 3% raise per month?

Take the annual increase and divide by 12. A 3% rise on $65,000 is $1,950 a year, which is $162.50 a month before tax.

Is the increase calculated before or after tax?

Raises are quoted on gross salary, before tax. Your take-home increase is smaller, and how much smaller depends on your tax bracket and deductions.

How do two raises in a row combine?

They compound. A 5% rise followed by another 5% is 1.05 × 1.05 = 1.1025, so 10.25% overall rather than 10%.

Percentage Calculator / Salary increase calculator

Salary Increase Calculator

See your new salary after a raise, what percentage an offer actually is, and whether it beats inflation. Free, ad-free, and every answer updates as you type.

Your new salary

Salary after a raise

A salary ofwith a% rise

67,600 · +2,600 a year

Work out the percentage

Raise percentage between two salaries

Fromto

+10% increase

Is the rise ahead of inflation?

A% riseonwith inflation at%

+0.97% in real terms

How to calculate a pay rise step by step

A worked example: $65,000 rising to $71,500.

1. Find the increase
71,500 − 65,000 = $6,500
2. Divide by the old salary
6,500 ÷ 65,000 = 0.10
3. Multiply by 100
0.10 × 100 = a 10% rise
4. Convert to monthly
6,500 ÷ 12 = $541.67 a month, gross

Going the other way is quicker: to apply a known percentage, multiply the salary by 1 plus the percentage as a decimal. A 4% rise on $65,000 is 65,000 × 1.04 = $67,600.

Read the offer in real terms

A rise only makes you better off if it outpaces inflation. If prices rose 3% and your pay rose 4%, your real gain is 1.04 ÷ 1.03 − 1 = about 0.97% — closer to 1% than 4%.

Two smaller rises in a row are worth slightly more than their sum, because the second applies to the already-raised salary: 5% then 5% is 10.25%, not 10%.

Every figure here is gross, before tax. Your take-home increase depends on your tax bracket and any pension or benefit deductions that scale with salary.

Common salary increase answers

New annual salary after the rise. Change any number above for your own figures.

3% rise on $50,000$51,500

5% rise on $50,000$52,500

10% rise on $50,000$55,000

3% rise on $65,000$66,950

4% rise on $65,000$67,600

10% rise on $65,000$71,500

2% rise on $80,000$81,600

5% rise on $80,000$84,000

7% rise on $95,000$101,650

$65,000 → $71,500 is+10%

$50,000 → $55,000 is+10%

$80,000 → $84,000 is+5%

Pay rise questions people ask

How do I calculate a salary increase percentage?: Subtract the old salary from the new one, divide by the old salary, and multiply by 100. Example: $65,000 to $71,500 is (71,500 − 65,000) ÷ 65,000 × 100 = a 10% rise.
How do I work out my new salary after a raise?: Multiply your current salary by (1 + raise ÷ 100). A 4% rise on $65,000 is 65,000 × 1.04 = $67,600.
What is a good annual pay rise?: It depends on your market and inflation. A rise below the inflation rate is a real-terms pay cut, so compare your percentage against current inflation where you live rather than against a fixed benchmark.
How much is a 3% raise per month?: Take the annual increase and divide by 12. A 3% rise on $65,000 is $1,950 a year, which is $162.50 a month before tax.
Is the increase calculated before or after tax?: Raises are quoted on gross salary, before tax. Your take-home increase is smaller, and how much smaller depends on your tax bracket and deductions.
How do two raises in a row combine?: They compound. A 5% rise followed by another 5% is 1.05 × 1.05 = 1.1025, so 10.25% overall rather than 10%.

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