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Salary Increase Calculator

Last updated: May 31, 2026

Written by Blake Boege

A salary increase calculator is a payroll tool used to estimate the financial impact of a raise. It computes the new salary from a current salary and a specified raise percentage, or works in reverse to find the percentage increase given the old and new salaries. It helps employees negotiate compensation, project budget changes, and evaluate job offers.

Calculate your pay raise details. Enter your current salary and a raise percentage to find your new salary, or enter your new salary to calculate the percentage raise.

Quick Answer

Calculate your new annual salary based on a raise percentage, or find the percentage increase between your old and new salaries.

$

Your annual salary before the raise.

%

The percentage raise to apply (e.g. 5.0).

Raise Breakdown

New annual salary

$78,750.00

An increase of $3,750.00 per year

Old salary$75,000.00
New salary$78,750.00
Raise amount$3,750.00
Raise percentage5.00%
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Examples

$75,000 old salary, 5% raise percentage

New Salary: $78,750 (+$3,750 raise)

$60,000 old salary, $65,000 new salary

Raise Percentage: 8.33% (+$5,000 raise)

$100,000 old salary, 3.5% raise percentage

New Salary: $103,500 (+$3,500 raise)

How it works

This calculator works in two modes: calculating a new salary based on a raise percentage, or calculating the raise percentage based on the difference between your old and new salary:

Calculate New Salary (from raise percentage):

Raise Amount = Old Salary × (Raise % ÷ 100)

New Salary = Old Salary + Raise Amount

Calculate Raise Percentage (from old and new salary):

Raise Amount = New Salary − Old Salary

Raise % = (Raise Amount ÷ Old Salary) × 100

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Frequently asked questions

To find the percentage raise between an old salary and a new salary, subtract the old salary from the new salary to find the raise amount. Then, divide the raise amount by the old salary and multiply by 100.

Multiply your current salary by the raise percentage (converted to a decimal, e.g. 5% = 0.05) to find your raise amount. Add this raise amount to your current salary to find your new salary. Alternatively, multiply your current salary by 1 plus the raise percentage divided by 100.

A typical annual performance-based merit raise in the United States generally ranges from 3% to 5%. Cost-of-living adjustments (COLA) fluctuate based on inflation, while promotional raises or salary increases from changing jobs are often higher, averaging 10% to 20% or more.

If you are paid hourly, you can apply the same percentage increase directly to your hourly wage. Alternatively, assuming a standard 40-hour work week (2,080 working hours per year), you can divide your annual salary raise amount by 2,080 to find the equivalent hourly raise.