Pay Rate Change Calculator
Calculate the exact percentage and dollar difference between your old and new pay rates.
How to Calculate Your Pay Rate Change
Understanding a pay raise (or pay cut) requires more than just looking at the new number on your check. This pay rate change calculator helps you visualize the impact of a salary adjustment across different timeframes—hourly, monthly, and annually.
The Percentage Increase Formula
To calculate the percentage of a pay increase manually, you can use the following formula:
((New Rate – Old Rate) / Old Rate) × 100 = Percentage Change
For example, if you were making $20 per hour and your rate increased to $23 per hour:
- Difference: $23 – $20 = $3
- Calculation: ($3 / $20) = 0.15
- Percentage: 0.15 × 100 = 15% increase
Why Annualized Impact Matters
A small hourly raise can seem insignificant on a daily basis, but when viewed annually, the numbers become substantial. A $2.00 per hour raise for a full-time employee (40 hours per week) results in an extra $80 per week, which totals $4,160 over the course of a 52-week year. Using our calculator allows you to see this "big picture" impact immediately.
Negotiating Your Next Pay Increase
When entering a performance review, it is helpful to have these figures ready. Instead of asking for "a little more money," you can ask for a specific percentage increase based on market data. Knowing that a 5% raise equates to a specific dollar amount allows you to budget more effectively for the coming year.
Frequently Asked Questions
How many working hours are in a year? Most employers use 2,080 hours as the standard for a full-time employee (40 hours per week × 52 weeks).
Does this include taxes? No, this calculator determines gross pay change. Your net (take-home) pay will depend on your local tax jurisdiction and deductions.