Calculating a raise percentage is a fundamental skill for both employees and employers. For employees, it helps quantify the impact of a salary increase, enabling better negotiation and financial planning. For employers, it's crucial for managing compensation budgets, ensuring competitive pay, and motivating staff.
The formula for calculating the raise percentage is straightforward. It measures the increase in salary relative to the original salary, expressed as a percentage.
New Salary: This is the salary an individual receives after the raise has been applied.
Previous Salary: This is the salary an individual was receiving before the raise. It's essential to use the base salary before any bonuses or other additional compensation unless specifically calculating a raise on the total compensation package.
Difference (New Salary – Previous Salary): This calculates the absolute monetary value of the raise.
Division by Previous Salary: This step normalizes the raise amount, showing how much it is relative to the starting point.
Multiplication by 100: This converts the resulting decimal into a percentage.
How to Use the Calculator
Enter your Previous Salary in the first input field. This is your salary before the raise.
Enter your New Salary in the second input field. This is your salary after the raise.
Click the "Calculate Raise Percentage" button.
The calculator will display the percentage increase of your salary.
Example Calculation
Let's say an employee's previous salary was $50,000 and they received a raise, bringing their new salary to $55,000.