Pay Raise Percentage Calculator

This pay raise calculator can add the salary increase percentage to the current pay rate and return the new salary amount.

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Created by: Jainisha Pansuriya

How to Calculate a Pay Raise

There are three different ways to calculate a pay raise. Each method is explained below, including the formula and a practical example.

1. Pay Raise by Percentage

Formula used:

New Pay = Current Pay × (1 + (Raise Percentage ÷ 100))

Example:

Find the new pay rate for:

  • Current Annual Pay = $60,000
  • Raise Percentage = 15%

Apply the values in the formula:

= 60,000 × (1 + (15 ÷ 100))

= 60,000 × 1.15

New Pay = $69,000

2. Pay Raise by Amount

Formula used:

New Pay = Current Pay + Amount Raised

Example:

Find the new salary for:

  • Current Salary = $70,000
  • Amount Raised = $14,700

Apply the values in the formula:

= 70,000 + 14,700

New Salary = $84,700

Pay Raise (%) = (Amount Raised ÷ Current Salary) × 100

= (14,700 ÷ 70,000) × 100

= 0.21 × 100

= 21%

3. Pay Raise by New Pay Rate

Formula used:

Pay Raise (%) = ((New Pay - Current Pay) ÷ Current Pay) × 100

Example:

Find the salary increase percentage for:

  • Current Pay = $25,000
  • New Pay = $32,000

Apply the values in the formula:

= ((32,000 - 25,000) ÷ 25,000) × 100

= (7000 ÷ 25,000) × 100

= 0.28 × 100

= 28%