The Raise Percentage Calculator measures the percentage increase from an old pay rate to a new pay rate. It also shows the dollar increase per pay period and annualized amounts, making it useful for reviewing an offer, confirming a payroll adjustment, or comparing raises across different salary levels.
The calculation is based on gross pay before deductions. The annual view depends on the selected number of pay periods, while taxes, bonuses, benefits, inflation, and changes in hours are outside the basic raise percentage.
Use gross pay for one consistent pay period.
Use the updated gross amount for the same type of pay period.
Choose how many of those pay periods occur in a normal year.
Review the relative raise alongside the annualized dollar change.
Where:
Assumptions: Both pay figures must cover the same period and workload. Bonuses and benefit changes are excluded.
The calculation is based on gross pay before deductions. The annual view depends on the selected number of pay periods, while taxes, bonuses, benefits, inflation, and changes in hours are outside the basic raise percentage.
Pay estimates are gross amounts before taxes, deductions, and benefit changes.
Given:
Calculation:
Increase = 2,568 − 2,400 = $168. Raise percentage = 168 ÷ 2,400 × 100 = 7%. Annual increase = 168 × 26 = $4,368.
Result: 7.00% raise and $4,368 annual increase
Interpretation: The new rate is 7% above the old rate before taxes and other compensation changes.
Yes. Enter both hourly rates and select one annual period only if you only need the percentage. For annual dollars, use an hourly-to-salary calculation with actual hours.
It means the new pay is lower than the old pay, so the change is a reduction rather than a raise.
Include them only when both old and new figures represent comparable total compensation. Otherwise compare base pay separately.
No. It measures the nominal pay change. Compare it with inflation or a real-pay calculation to assess purchasing power.
The core percentage is similar, but this page is centered on comparing two matching pay-period amounts and annualizing the difference by frequency.