RaiseDelta

To calculate a salary increase percentage, subtract your old salary from your new salary, divide the difference by your old salary, and multiply by 100.

If you already know your raise percentage and want to see the exact effect on annual salary, monthly pay, biweekly pay, hourly equivalent, inflation-adjusted income and more, use the RaiseDelta Salary Increase Calculator.

How to calculate salary increase percentage step by step

The calculation only needs two numbers: your salary before the raise and your salary after the raise.

1. Find the dollar increase. Subtract your old salary from your new salary.
2. Divide the increase by your old salary. This converts the change into a decimal relative to your original pay.
3. Multiply by 100. The result is your salary increase percentage.

Example: salary increases from $72,000 to $77,400

First, calculate the increase:

$77,400 − $72,000 = $5,400

Then divide the increase by the old salary:

$5,400 ÷ $72,000 = 0.075

Multiply by 100:

0.075 × 100 = 7.5%

The salary increase is 7.5%.

How to calculate your new salary from a raise percentage

If you know the percentage raise but do not yet know your new salary, use this formula:

For example, a 5% raise on a $60,000 salary is:

$60,000 × 1.05 = $63,000

The annual increase is $3,000, which is $250 per month before taxes and other deductions.

Salary increase examples: 3%, 5%, 7%, and 10%

Current salary	Raise	Annual increase	New salary
$50,000	3%	$1,500	$51,500
$50,000	5%	$2,500	$52,500
$50,000	7%	$3,500	$53,500
$50,000	10%	$5,000	$55,000

The percentage tells you how large the raise is relative to your starting salary. That is why a 5% raise has a different dollar value at different salary levels.

How much is a 3% raise?

A 3% raise adds $3 for every $100 of annual salary. On $40,000, that is $1,200 per year. On $70,000, it is $2,100. On $100,000, it is $3,000.

How much is a 5% raise?

A 5% raise adds $5 for every $100 of annual salary. A $65,000 salary with a 5% raise becomes $68,250, an increase of $3,250 per year or about $270.83 per month before taxes and deductions.

How much is a 10% raise?

A 10% raise is straightforward: your annual salary increases by one tenth. A salary of $80,000 becomes $88,000, adding $8,000 per year or about $666.67 per month before taxes and deductions.

How to calculate a raise from hourly pay

The same percentage formula works for hourly wages.

If your hourly rate increases from $25 to $27:

(($27 − $25) ÷ $25) × 100 = 8%

Your hourly wage increased by 8%. At 40 hours per week for 52 weeks, the annualized pay changes from $52,000 to $56,160, before overtime or unpaid time off. For a deeper explanation of converting hourly, part-time or partial-year pay into a yearly equivalent, see What Is an Annualized Salary?. If you want to include bonuses, commissions or other yearly income sources, see What Is Annual Income?.

Salary increase percentage vs. dollar increase

A dollar increase tells you the absolute amount of extra pay. A percentage increase tells you how large that change is compared with your previous salary. Both matter when comparing offers, promotions, and raises.

For example, a $5,000 raise is 10% on a $50,000 salary but only 5% on a $100,000 salary. The dollar amount is identical, but the relative improvement is very different.

Nominal raise vs. real raise after inflation

Your nominal raise is the percentage increase in your pay. Your real raise adjusts that increase for inflation, which gives a better picture of the change in purchasing power.

A useful approximation is to subtract inflation from your raise, but the more precise calculation is:

For example, with a 5% salary increase and 3% inflation, the real increase is about 1.94%, not exactly 2%.

How to compare a raise with a new job offer

Do not compare base salary alone. Consider annual bonuses, guaranteed compensation, working hours, benefits, commute or remote-work costs, and the timing of the increase. A higher base salary can still be a weaker total package if other compensation falls.

The RaiseDelta calculator includes an offer-comparison section that lets you compare current and new base salary plus annual bonuses in one place.

Common mistakes when calculating a salary increase

• Dividing by the new salary instead of the old salary. The old salary is the baseline.
• Confusing percentage points with percent change. Salary increases are normally expressed as percent change from the old salary.
• Comparing gross and take-home pay. A gross raise does not translate dollar-for-dollar into after-tax income.
• Ignoring the effective date. A raise starting mid-year does not add a full year’s increase during that calendar year.
• Ignoring inflation. A larger paycheck does not always mean the same increase in purchasing power.

Frequently asked questions

What is the formula for salary increase percentage?

Subtract the old salary from the new salary, divide the result by the old salary, then multiply by 100.

How do I calculate a 5% salary increase?

Multiply your current salary by 0.05 to find the increase, then add that amount to your current salary. You can also multiply the current salary directly by 1.05.

How do I calculate salary increase from old salary to new salary?

Use: ((new salary − old salary) ÷ old salary) × 100. For example, moving from $50,000 to $55,000 is a 10% increase.

Should I calculate my raise before or after tax?

Salary raise percentages are normally based on gross pay before tax. If you want to estimate the change in take-home pay, apply an effective tax rate separately and treat it as an estimate because actual taxes depend on your circumstances.

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Calculate your own raise: Use the free RaiseDelta Salary Increase Calculator to see your new annual salary, monthly pay, biweekly pay, hourly equivalent, inflation-adjusted raise, effective-date impact, and optional after-tax estimate. If you plan to use the result in a compensation discussion, see our Salary Increase Request Letter examples and email templates.