Raise Percentage Calculator

New pay = current pay × (1 + raise % ÷ 100).

Raise % = (new pay − current pay) ÷ current pay × 100, when you know the new figure instead.

Real raise % = ((1 + raise %) ÷ (1 + inflation %) − 1) × 100, which strips out the effect of rising prices.

• If you know the percent, apply it to current pay to get new pay.
• If you know the new pay instead, divide the dollar increase by current pay to get the percent.
• Convert the raise amount to an annual figure using 2,080 hours if you're paid hourly.
• Divide the annual increase by the number of paychecks a year for the per-paycheck effect.
• Compare the nominal raise percent to inflation using the Fisher-style formula to find the real, inflation-adjusted raise.

The percentage increase compares new pay to old pay, and the real raise subtracts inflation so you can see whether your buying power actually rose.

Common mistakes and assumptions

• Comparing gross raise against net pay — a raise is taxed, so your take-home rises by less.
• Ignoring inflation: a raise below the inflation rate is a pay cut in real terms.
• Comparing an hourly raise to a salary figure without converting to the same basis first.

A $60,000 annual salary getting a 4% raise, paid biweekly, with 3% inflation.

1. 1New pay = $60,000 × 1.04 = $62,400.
2. 2Raise amount = $62,400 − $60,000 = $2,400, which is 4.00%.
3. 3New hourly equivalent = $62,400 ÷ 2,080 = $30.00.
4. 4Per-paycheck increase = $2,400 ÷ 26 = $92.31.
5. 5Real raise after 3% inflation = ((1.04 ÷ 1.03) − 1) × 100 = 0.97%.

How do I calculate my raise percentage from two pay figures?

Subtract your old pay from your new pay, divide by the old pay, and multiply by 100. For example, going from $60,000 to $62,400 is a $2,400 increase, or 4%.

Why does my raise feel smaller than the percentage suggests?

Taxes reduce every dollar of a raise, and if inflation is running high, the extra pay buys less than it looks like on paper. The real-raise figure here strips out inflation so you can see the true change in purchasing power.

Is a 3% raise good?

It depends entirely on inflation and your industry. A 3% raise during 2% inflation is a real gain, but the same 3% raise during 6% inflation is actually a pay cut in purchasing-power terms.

How does this handle hourly raises?

Select 'Hourly rate' as the pay basis and enter your hourly figures. The calculator still reports an annual equivalent using a standard 2,080-hour work year so you can compare it with salaried offers.

Does the per-paycheck figure include taxes?

No, it's the gross increase before withholding. Use the Take-Home Pay or Paycheck Withholding calculators with your old and new pay to see the after-tax difference.

What if my raise includes a promotion with new duties?

This tool only measures the pay change. If the new role also changes your hours, bonus eligibility, or benefits, those should be evaluated separately alongside the raise percentage.