Pay Raise Calculator
Calculate your new pay after a raise using our raise calculator. Plus, learn how to calculate a pay increase below.
New Pay and Wages:
| Current Pay | Raise | Pay After Raise | |
|---|---|---|---|
| Hourly | $ | $ | $ |
| Weekly | $ | $ | $ |
| Bi-Weekly | $ | $ | $ |
| Semi-Monthly | $ | $ | $ |
| Monthly | $ | $ | $ |
| Annually | $ | $ | $ |
On this page:
Joseph Rich holds a Bachelor's degree in economics and Master's degree in finance, and specializes in economics and investing analysis.
How to Calculate a Pay Raise
There are a few different ways an employer might offer a pay raise: a raise by percentage, a raise by an amount per hour, or a new pay rate. To calculate a raise, you’ll need one of the following formulas:
Percentage Pay Raise Formula
To calculate a raise by a percentage, use the following formula:
new pay = current pay + (current pay × raise percentage)
So, the new pay amount is equal to the current pay plus the current pay multiplied by the raise percentage.
Example: How Much is a 3 Percent Raise?
Let’s say you are making $20 per hour and receive a 3% pay raise. A 3% pay raise is a typical increase that employers use to help employees keep up with inflation and the increased cost of living.
Let’s input both of these numbers into the percentage pay raise formula to see what the new pay rate is.
new pay = $20 + ($20 × 3%)
new pay = $20 + $0.60
new pay = $20.60
After the pay raise, you would be making $20.60 per hour.
If, instead, you were making $30 per hour, a 3% raise would increase your pay rate to $30.90 per hour.
Amount Pay Raise Formula
To calculate a raise given a fixed increase, use the following formula:
new pay = current pay + raise by amount
Thus, the new pay is equal to the current pay plus the raise amount.
New Hourly Rate Formula
To calculate the raise as a percentage if you’ve been given a new rate, use the following formula:
raise percentage = new rate – old rate / old rate
The raise expressed as a percentage is equal to the new pay rate minus the old pay rate, divided by the old pay rate.
How to Calculate a New Annual Salary After a Pay Raise
The new annual salary can be calculated by using the three simple steps.
First, the new pay rate will need to be calculated.
Then, calculate the weekly pay by multiplying the new pay rate by the number of hours worked in a week.
Finally, the annual pay can be calculated by multiplying the weekly pay by 52 (the number of weeks in a year).
The annual salary can also be calculated by multiplying the pay rates by 2,080, which is the total hours worked in a year, assuming a 40-hour workweek.
Building on the example above, let’s walk through these steps to calculate the new annual salary.
The pay rate increased from $20 to $20.60 per hour after a 3% pay raise.
If we assume a standard 40-hour workweek, that would be a weekly pay of 40 × $20.60 = $824.
The weekly pay before the raise was 40 × $20 = $800. To determine how many hours per day or per week you work, try using our hours calculator.
Before the pay raise, the annual pay was $800 × 52 = $41,600 (you can use an hourly to salary calculator to find this).
To calculate the new pay rate multiply $20.60 × $2,080 = $42,848. These are exactly in line with what we calculated previously.
Therefore, if you earn $20 per hour and get a 3% raise, this will translate into a $1,248 annual pay increase.
How to Calculate a Raise Amount After a Pay Increase
After a pay increase, the raise is calculated by subtracting the old annual pay from the new annual pay.
In the previous example, we saw an annual pay increase of $1,248 after a 3% raise assuming the worker earned $20 per hour with a 40-hour workweek. You can calculate this 3% raise by dividing the pay increase of $1,248 by the previous annual wages of $41,600.
raise percentage = $1,248 / $41,600 = 3%
You might also be interested in our salary to hourly converter.