How do I calculate what percentage raise I actually received?

Subtract your old salary from your new salary, divide by the old salary, then multiply by 100. For example, going from $55,000 to $58,000 is a 5.45% raise.

Does a 5% raise mean the same dollar amount for everyone?

No, the dollar impact depends on the starting salary — 5% of $40,000 is $2,000, while 5% of $80,000 is $4,000, even though the percentage is identical.

How does a percentage raise apply to hourly pay?

The same percentage formula applies directly to the hourly rate — a $20/hour rate with a 3% raise becomes $20.60/hour, before considering how many hours are worked per year.

Pay Raise Calculator

Find out exactly how much your raise is worth — new salary, hourly rate, and take-home difference by pay period.

Current Salary / Rate

Pay Period (current pay is per…)

Raise Type

Raise Percentage (%)

CPI / Inflation Rate (%) optional

How to use

Enter your current salary or rate, select the pay period it represents (annual, monthly, hourly, etc.).
Choose Percentage to enter a raise like "5%" or Fixed Amount to enter a dollar amount like "$3,000".
Results show your new annual salary, exact raise amount, new hourly rate (based on 40 hrs/week, 52 weeks), and the difference by every pay period.
Enter a CPI/inflation rate to see whether your raise keeps up with the cost of living and how much you'd need to break even.
Use Compare Two Offers to evaluate competing raises side by side — the better offer is highlighted.
Negotiation tip: Research market rates on Glassdoor, LinkedIn, and the BLS before negotiating. Aim 10–20% above your target to leave room for counter-offers.
Tip: A 3–5% raise is average. Anything below the current inflation rate is effectively a pay cut in real terms.

About this Pay Raise Calculator

A raise can be offered as a percentage or a flat dollar amount, and translating between the two (or figuring out what percentage a dollar raise actually represents) is where quick mental math often goes wrong.

The formulas

New salary = Current salary × (1 + raise % ÷ 100)
Raise % = (New salary − Current salary) ÷ Current salary × 100

Worked example

A $55,000 salary with a 4% raise: $55,000 × 1.04 = $57,200, a $2,200 increase. Going the other direction, a raise from $55,000 to $58,000 represents ($58,000 − $55,000) ÷ $55,000 × 100 = 5.45%, not a round number, which is why the same dollar raise can look larger or smaller in percentage terms depending on the starting salary.

Why the same percentage raise means different dollar amounts

A 5% raise on a $40,000 salary is $2,000, while a 5% raise on an $80,000 salary is $4,000 — the same percentage produces a very different dollar impact depending on the base salary, which matters when comparing raise offers across different roles or negotiating from a specific starting point.

Raises and hourly pay

The same percentage math applies to hourly wages: a $20/hour rate with a 3% raise becomes $20.60/hour. Converting that hourly increase to an annual figure requires multiplying by actual hours worked per year, not assuming a flat number.