Pay Raise Calculator

Percent in, new pay out

The forward direction is multiplication. New pay equals current pay times (1 + percent / 100). A 10% raise on $20 an hour is $20 × 1.10 = $22. The increase is $2 an hour. At the default schedule, that $2 is $80 a week (2 × 40) and $4,160 a year (80 × 52). The same percent on a $52,000 salary is a $5,200 increase, because 52,000 × 0.10 = 5,200, and the new salary is $57,200.

Switch the first choice to annual salary when the offer in front of you is yearly. The hourly difference is then the annual increase divided by hours per week times weeks per year. That is the same 40 × 52 divisor the salary to hourly calculator uses, and you can change both numbers if the job is not a 2,080-hour year.

New amount in, percent out

Sometimes you are holding the new rate and you want the percent. Choose “New amount.” The increase is new pay minus current pay. The percent is that increase divided by current pay, times 100. From $20 to $22 is a $2 increase, and 2 / 20 is 10%. From $52,000 to $57,200 is the same 10%. If current pay is zero, the percent is undefined, and the result says so instead of inventing a number.

A negative percent is allowed. It estimates a cut, not a raise, with the same formula. A percent that would push pay below zero is rejected. Pay itself cannot be negative.

What a raise does to overtime

This pay raise calculator does not rebuild a whole timesheet. It answers the rate question. If you still work the same hours, the weekly and yearly lines are the gross difference at straight time. Overtime hours would move by the same percent, because time and a half is a multiple of the rate. Five overtime hours at $20 are $150; at $22 they are $165. Price the week itself on the overtime calculator or the time and a half calculator after you know the new rate.

The figures are gross. Taxes, benefit premiums, and a different number of hours next year all change what reaches a bank account. Converting the other way, from the new hourly rate to a salary, is the hourly to salary calculator. If the raise conversation started from a clock time and a decimal rate sheet, the hours to decimal calculator is the converter for the hours, not for the percent.