How to Calculate Salary Increase
Enter your work hours: Input the number of hours you work
per week (defaults to 40 hours for full-time).
Input current pay: Enter your current salary in any
format - hourly, weekly, monthly, or annual. The calculator automatically
converts between all formats.
Specify your raise: Choose to enter either the raise
percentage (e.g., 5%) or your new target salary amount.
View results: See your new salary amounts and total
increase across all time periods instantly.
How to Calculate Salary Increase Manually
Formula for New Salary:
New Salary = Current Salary + (Current Salary × Raise Percentage ÷ 100)
Example Calculation:
If you currently earn $50,000 annually and receive a 6% raise:
• Raise Amount = $50,000 × 0.06 = $3,000
• New Salary = $50,000 + $3,000 = $53,000
Formula for Raise Percentage:
Raise Percentage = ((New Salary - Old Salary) ÷ Old Salary) × 100
Example:
If your salary increases from $45,000 to $48,000:
• Raise Percentage = (($48,000 - $45,000) ÷ $45,000) × 100 = 6.67%
When Can You Expect a Salary Increase
Performance Reviews
Most companies conduct annual performance evaluations, making this the most
common time for salary increases. Prepare by documenting your achievements
and contributions throughout the year.
Length of Service
Some organizations provide automatic raises based on tenure, often annually
or bi-annually. These are typically smaller cost-of-living adjustments.
Merit and Promotions
Exceptional performance, new responsibilities, or formal promotions often
trigger immediate salary increases. These tend to be larger percentage
increases.
Market Adjustments
Companies may provide raises to keep salaries competitive with industry
standards, especially in high-demand fields.
Inflation Adjustments
To maintain purchasing power, some employers provide annual cost-of-living
adjustments based on inflation rates.
Frequently Asked Questions About Salary Increases - FAQ
How do you calculate percentage increase in salary?
To calculate salary increase percentage, subtract your old salary from
your new salary, divide by your old salary, and multiply by 100. For
example: (($55,000 - $50,000) ÷ $50,000) × 100 = 10% increase.
How to calculate salary increase percentage?
Use the formula: ((New Salary - Old Salary) ÷ Old Salary) × 100. This
gives you the percentage increase. Our calculator does this automatically
when you input your old and new salary amounts.
What is considered a good salary increase percentage?
A typical annual raise ranges from 3-5% for cost-of-living adjustments.
Performance-based increases often range from 5-10%. Promotions can result
in 10-20% increases or more, depending on the role and industry.
How do you calculate salary increase over multiple years?
For compound increases over multiple years, use: Final Salary = Initial
Salary × (1 + annual increase rate)^number of years. For example, a
$50,000 salary with 4% annual increases over 5 years: $50,000 × (1.04)^5 =
$60,833.
When is the best time to ask for a salary increase?
The best times are during annual performance reviews, after completing
major projects, when taking on additional responsibilities, or when you've
received competing job offers. Avoid asking during company financial
difficulties or immediately after poor performance.