FREE PAY RAISE CALCULATOR

What is a pay raise calculator?

A pay raise calculator computes your new income after a salary increase. Enter your current hourly wage or annual salary and specify the raise as a percentage (e.g., 5%) or dollar amount per hour (e.g., $1.50). The calculator instantly shows your updated annual, monthly, and weekly earnings alongside the total annual increase.

Whether you're evaluating a job offer, planning a budget after a promotion, or preparing for a salary negotiation, knowing the exact dollar impact of a raise across every pay period helps you make informed decisions.

How to use this pay raise calculator

This tool calculates raise impact in real time. Enter your pay in any field — hourly, weekly, monthly, or annual — and the calculator derives all others. Then specify the raise and see your new income instantly.

1. Enter your current pay — type your hourly wage, or enter weekly, monthly, or annual salary. The calculator converts between all periods automatically based on your hours per week.
2. Set your hours per week — the default is 40 (standard full-time). Adjust for part-time or overtime schedules so projections are accurate.
3. Specify the raise — enter it as a percentage (e.g., 5%) or a dollar amount per hour (e.g., $1.50). Both values stay in sync — change one and the other updates automatically.
4. Review the breakdown — see your new annual salary, monthly income, weekly earnings, and the total annual increase amount.
5. Compare scenarios — change the raise percentage, dollar amount, or hours to quickly compare different raise offers or plan budget impacts.

Key features

Percentage and dollar-amount raises

Enter the raise as a percentage or a fixed dollar amount per hour. The calculator keeps both values synchronized — change one and the other recalculates instantly.

Bi-directional income entry

Type your pay into any field — hourly, weekly, monthly, or annual — and all other periods derive automatically. No need to convert manually before using the tool.

Adjustable weekly hours

Set hours per week to match your schedule. The calculator uses a 5-day work week and 260 work days per year for accurate annual and monthly projections.

Instant results

All fields recalculate in real time as you type — no submit button required. Quickly test different raise scenarios back to back.

Local storage persistence

Your inputs are automatically saved in your browser. Return later to pick up where you left off, or click Reset to clear everything.

No sign-up, no ads

100% free, runs entirely in your browser, and your data never leaves your device.

Pay raise formula

The core formula for a percentage-based raise is:

New Hourly Rate = Current Hourly Rate × (1 + Raise % ÷ 100)

For a fixed-dollar raise, the formula is simply:

New Hourly Rate = Current Hourly Rate + Raise Amount per Hour

Once the new hourly rate is determined, the calculator derives all other periods:

• Weekly = New Hourly Rate × Hours per Week
• Monthly = New Hourly Rate × Hours per Day × 22 work days
• Annual = New Hourly Rate × Hours per Day × 260 work days
• Annual Increase = New Annual Salary − Current Annual Salary

What's a good raise percentage?

Raise percentages vary by industry, performance level, and economic conditions. Here are typical benchmarks:

• Cost-of-living adjustment (COLA) — 2–3% annually, designed to keep pace with inflation.
• Merit-based raise — 3–5% for solid performance, rewarding individual contributions.
• Competitive market adjustment — 5–10% to retain talent when market rates have shifted.
• Promotion raise — 10–20%+ reflecting new responsibilities, title change, and expanded scope.

For example, a 3% raise on a $60,000 salary equals $1,800 more per year, or about $150 extra per month before taxes. A 5% raise on the same salary adds $3,000 annually — $250 per month. Use this calculator to see exactly how different percentages translate to real dollars across every pay period.

Percentage vs fixed-dollar raises

When deciding how to structure a raise, employers typically choose between two approaches:

• Percentage-based raises — scale with the employee's current pay. A 5% raise gives a higher-paid employee a larger dollar increase than a lower-paid one. This approach is standard for salaried positions and annual merit reviews.
• Fixed-dollar raises — give every employee the same absolute increase (e.g., $1.00/hour more). This approach is common for hourly workers and can be more equitable for lower-wage positions since it represents a larger percentage increase for them.

Use this calculator to compare both approaches. Enter a percentage raise in one session, then switch to a dollar amount in another to see which option better fits your compensation strategy.

Who benefits from this calculator?

• Employees evaluating a raise offer — see exactly how much more you'll earn per paycheck before accepting or negotiating further.
• Job seekers comparing offers — convert different salary offers and raise packages into comparable annual, monthly, and hourly figures.
• Managers planning compensation — model the budget impact of percentage-based or fixed-dollar raises for individual team members or entire teams.
• Small-business owners — evaluate the cost of giving raises before committing, and plan payroll budgets accurately.
• HR and payroll teams — quickly calculate updated pay rates when processing raises, drafting offer letters, or auditing compensation equity.

What to consider before giving or accepting a raise

• Affordability — for employers, calculate the total annual cost (salary + benefits + taxes) before committing to a raise. For employees, factor in that gross raises are reduced by income tax and payroll withholdings.
• Market competitiveness — check whether the new rate aligns with industry benchmarks. The Bureau of Labor Statistics publishes occupation-specific wage data that can inform fair compensation.
• Performance vs cost-of-living — distinguish between merit raises (rewarding individual contributions) and COLA increases (keeping pace with inflation). Blending both signals clearly to employees helps with retention.
• Internal equity — ensure the raise doesn't create pay compression issues where new hires earn close to or more than long-tenured team members.
• Inflation impact — if inflation is running at 4% and a raise is 3%, the employee's real purchasing power is actually declining. Use CPI data to contextualize raises.

Helpful resources

• Bureau of Labor Statistics — Occupational Employment and Wages — industry-specific salary data to benchmark competitive pay rates.
• BLS — Consumer Price Index (CPI) — inflation data to evaluate whether raises keep pace with the cost of living.
• U.S. Department of Labor — Federal Minimum Wage — current federal and state minimum wage rates relevant to hourly raise calculations.

Other free tools you might find useful

Convert salary to hourly with the Salary to Hourly Calculator, track weekly hours with the Time Card Calculator, or compute overtime with the Overtime Timesheet Calculator.

Pay raise calculator FAQ