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Pay Raise Calculator

Human Resources · Free tool

Pay Raise Calculator

A raise is usually discussed as a percent and paid as an amount, and the two rarely appear on the same page. This pay raise calculator converts either way: give it a percent and it returns the new salary, or give it the new salary and it returns the percent, for employees weighing an offer and managers planning merit increases.

Your entries stay in this browser. Use Fill example to see a finished page first.

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What this HR tool gives you

Add the year's inflation and the result also shows the raise in real terms, so you can see whether pay actually went up. The page lists the new annual pay, the increase per year and per month, the raise percent, and a before-and-after table for annual, monthly and hourly pay.

What you enter

  • Current annual pay: gross salary before the raise
  • I know the: raise percent, or the new annual pay
  • Raise (%) or new annual pay: for example 5, or 63,000
  • Inflation for the year (%): optional; turns the raise into a real raise

Worked example

On $60,000 a 5% raise gives a new annual pay of $63,000: $3,000 more a year, or $250 a month. At 2,080 hours, $28.85 an hour becomes $30.29. With 3% inflation, the real raise is 1.94%.

How do you calculate a pay raise?

New pay = current pay × (1 + raise ÷ 100). When you type the new pay instead, raise percent = (new pay − current pay) ÷ current pay × 100. The monthly increase is the annual increase ÷ 12, and the hourly figures use 2,080 hours (40 × 52).

Real raise = (1 + raise) ÷ (1 + inflation) − 1. If the raise is smaller than inflation, the page says how much purchasing power falls. A negative raise percent is accepted for pay cuts. All amounts are gross; this is a calculation, not a pay recommendation.

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Tips before you use the result

  1. Compare the raise with inflation for the same twelve months, not the latest monthly figure, so the real raise is like for like.
  2. When negotiating, ask in amounts as well as percents: "$3,000" is concrete, while 5% on a lower base can be less than 4% on a higher one.
  3. Managers: run each employee's raise against their pay band with the compensation band tool so increases do not push pay past the maximum.
  4. A promotion raise and a merit raise are often budgeted separately; run them as two steps if you need to see each one.

Frequently asked questions

What is a good raise percentage?

Many employers budget merit increases of around 3 to 5% a year, with larger jumps for promotions or job changes. What is good depends on inflation, market pay for the role and performance. Use the inflation field to see whether a raise keeps up with prices.

How do I calculate my raise percentage?

Subtract the old salary from the new salary, divide by the old salary and multiply by 100. Going from $60,000 to $63,000 is $3,000 ÷ $60,000 = 5%. Choose New annual pay in the tool and it does this for you.

What is a real raise?

A real raise is the increase after inflation. If pay rises 5% while prices rise 3%, purchasing power rises by about 1.94%, not 2%, because both changes compound. If inflation is higher than the raise, real pay falls.

Can I use it for an hourly wage?

Yes. Type the hourly rate in Current annual pay and treat the outputs as hourly figures, ignoring the monthly and 2,080-hour rows. The percent and the real raise work the same for any unit of pay.

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Results depend on the figures you enter; check them against your own records before you rely on them. Last updated: October 2026 · Kurums editorial team.