# How much is my pay raise?

Computes a new pay from the current pay and a raise in percent or dollars, or the raise percent from the old and new pay.

- Page: https://www.acalculator.org/finance/pay-raise-calculator
- JSON spec: https://www.acalculator.org/finance/pay-raise-calculator.json
- Version: 87406b3b9ff3

## Default answer

Example with the default inputs (Current pay $60,000.00, Raise 4%): A 4% raise on $60,000.00 is $2,400.00, so your new pay is $62,400.00.

## Inputs

| Key | Label | Description |
| --- | --- | --- |
| current | Current pay | Your pay before the raise, for any period (per hour, per month or per year). |
| percent | Raise | The raise as a percent of the current pay. Negative for a pay cut. |
| newPay | New pay | Your pay after the raise, for the same period as the current pay. |
| raise | Raise amount | The raise in dollars for the same period: new pay minus current pay. |

## Outputs

| Key | Label | Description |
| --- | --- | --- |
| current | Current pay | Your pay before the raise, for any period (per hour, per month or per year). |
| percent | Raise | The raise as a percent of the current pay. |
| newPay | Your new pay | Your pay after the raise, for the same period as the current pay. |
| raise | Raise amount | The raise in dollars for the same period: new pay minus current pay. |

## Method

raise = current × percent ÷ 100; new = current + raise = current × (1 + percent ÷ 100).

## Assumptions

- The current pay, the raise amount and the new pay are all for the same period (per hour, per month or per year).
- The raise percent is of the current pay. A negative percent or amount is a pay cut.
- Pay is before tax. Tax and inflation are not included.

## Worked examples

1. current = $25.00, percent = 3% gives raise = $0.75, newPay = $25.75. Source: hand calculation in content.mdx: 25 × 3 ÷ 100 = 0.75; 25 + 0.75 = 25.75.
2. current = $52,000.00, newPay = $55,000.00 gives raise = $3,000.00, percent = 5.769231%. Source: hand calculation in content.mdx: 55,000 − 52,000 = 3,000; 3,000 ÷ 52,000 × 100 = 5.77%.
3. newPay = $66,000.00, percent = 10% gives current = $60,000.00, raise = $6,000.00. Source: hand calculation in content.mdx: 66,000 ÷ 1.10 = 60,000; 66,000 − 60,000 = 6,000.
4. current = $4,000.00, raise = -$200.00 gives newPay = $3,800.00, percent = -5%. Source: hand calculation in content.mdx: a $200 cut on $4,000 a month is −200 ÷ 4,000 × 100 = −5%.

## FAQ

### How do I calculate a pay raise?

Multiply your current pay by the raise percent and divide by 100. That is the raise in dollars. Add it to your current pay for the new pay. For example, a 3% raise on $25 an hour is 25 × 3 ÷ 100 = $0.75, so the new rate is $25.75 an hour.

### How do I work out the percent of a raise I got?

Subtract the old pay from the new pay, divide by the old pay, and multiply by 100. For example, going from $52,000 to $55,000 is a raise of $3,000, and 3,000 ÷ 52,000 × 100 = 5.77%.

### Does it matter if I enter hourly, monthly or yearly pay?

No, as long as every amount is for the same period. A 4% raise is 4% of an hourly rate or of a yearly salary alike. The raise amount and the new pay come out for that same period.

### What was my pay before a raise?

Divide the new pay by (1 + raise percent ÷ 100). For example, $66,000 after a 10% raise was 66,000 ÷ 1.10 = $60,000 before it.

### Can I use it for a pay cut?

Yes. Enter a negative percent or a negative raise amount. A $200 cut on $4,000 a month is a −5% change, and the new pay is $3,800 a month.

### Does a raise keep up with rising prices?

Only if the raise percent is at least the rate prices rose over the same time. The Bureau of Labor Statistics measures price changes with the Consumer Price Index and wage growth with the Employment Cost Index. This calculator does not include inflation or tax.

## Sources

- Hand derivation from the definition of a percent change: change = old × percent ÷ 100; new = old + change (shown in full below).
- U.S. Bureau of Labor Statistics, Employment Cost Index (quarterly measure of wage and salary growth). https://www.bls.gov/eci/
- U.S. Bureau of Labor Statistics, Consumer Price Index. https://www.bls.gov/cpi/