Raise Percentage Calculator

Enter the old and new salary to find the raise percentage.

How it is calculated

Enter the old and the new salary, both as yearly amounts in the same currency. The tool finds the difference raise = new − old, then the percentage raise% = raise ÷ old × 100, so the percentage is always measured against the old salary. The yearly raise is that difference, and the monthly raise is raise ÷ 12. The old salary must be above zero. If the new salary is lower, all three results turn negative, which shows a pay cut instead of a raise. Figures are shown in dollars with two decimals and the percentage with two decimals. The tool compares the numbers you type; it does not know about tax, so the monthly raise is a gross amount, not extra take-home pay.

Worked example

Old salary 60,000, new salary 64,500. Raise: 64,500 − 60,000 = $4,500.00 a year. Percentage: 4,500 ÷ 60,000 × 100 = 7.50%. Monthly raise: 4,500 ÷ 12 = $375.00. With the new salary at 57,000 instead, the difference would be −3,000 and the result −5.00%, a cut.

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Common mistakes

  • Dividing by the new salary instead of the old one: 4,500 ÷ 64,500 gives 6.98%, not the 7.50% raise.
  • Mixing monthly and yearly amounts, such as old salary per month and new salary per year, which gives an absurd percentage.
  • Reading the monthly raise as extra take-home pay. It is before tax, so the net gain is smaller.
  • Comparing a gross old salary with a net new offer. Both figures must be gross or both net.
  • Confusing percent and percentage points when asked for a 7.5% raise on top of an earlier 5% raise; successive raises compound rather than add.

About this calculator

A raise percentage is simply the percentage increase between an old salary and a new one, calculated as (new - old) / old x 100 — the standard way HR departments, recruiters, and employees themselves express a pay increase regardless of the underlying salary level. It normalizes raises so a $2,000 bump on a $40,000 salary (5%) can be compared fairly to a $4,000 bump on a $100,000 salary (4%).

Put the old and new salary side by side to get the raise as a percentage and as extra money per year and per month, the relative jump and the cash it adds each pay period.

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Comments (1)

  • Editorial team

    Successive raises compound rather than add. Two 5% raises give 10.25%, not 10%, so enter your first salary and your latest salary to see the real total. To judge purchasing power, compare the percentage with inflation over the same period; a raise equal to inflation leaves you where you were. Is the raise you are checking a one-off or part of a series?

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