| New Salary: | $"+newSal.toLocaleString(undefined,{minimumFractionDigits:2,maximumFractionDigits:2})+" |
| Raise Amount: | $"+raiseAmt.toLocaleString(undefined,{minimumFractionDigits:2,maximumFractionDigits:2})+" |
| Raise Percentage: | "+raisePct.toFixed(2)+"% |
| New Pay per Period: | $"+perPeriodNew.toLocaleString(undefined,{minimumFractionDigits:2,maximumFractionDigits:2})+" |
| Raise per Period: | $"+perPeriodRaise.toLocaleString(undefined,{minimumFractionDigits:2,maximumFractionDigits:2})+" |
";if(mode=='percentage'){out+="1. Convert percent to decimal: "+v2+" / 100 = "+(v2/100).toFixed(4)+"
2. Multiply salary by decimal: $"+v1+" * "+(v2/100).toFixed(4)+" = $"+raiseAmt.toFixed(2)+"
3. Add raise to old salary: $"+v1+" + $"+raiseAmt.toFixed(2)+" = $"+newSal.toFixed(2);}else if(mode=='amount'){out+="1. Find percentage: ($"+raiseAmt+" / $"+v1+") * 100 = "+raisePct.toFixed(2)+"%
2. Add raise to old salary: $"+v1+" + $"+raiseAmt.toFixed(2)+" = $"+newSal.toFixed(2);}else{out+="1. Find raise amount: $"+newSal+" – $"+v1+" = $"+raiseAmt.toFixed(2)+"
2. Find percentage: ($"+raiseAmt.toFixed(2)+" / $"+v1+") * 100 = "+raisePct.toFixed(2)+"%";}out+="
Using the Raise Calculator
Negotiating a pay increase or planning your annual budget requires precise numbers. This raise calculator is designed to provide you with a comprehensive breakdown of your earnings after an increase. Whether you were offered a specific percentage or a flat dollar amount, this tool helps you visualize how that change affects your paycheck.
By selecting your pay frequency, you can see not only the annual impact but also how much extra you will see in each individual check, whether you are paid weekly, bi-weekly, or monthly.
- Current Salary
- Enter your current gross pay (before taxes). This can be your annual salary or your hourly rate, provided you adjust the frequency accordingly.
- Raise Percentage
- The percentage increase offered (e.g., a 3% cost-of-living adjustment or a 10% merit increase).
- Pay Frequency
- How often you receive a paycheck. This helps calculate the "Raise per Period" and "New Pay per Period" metrics.
How the Raise is Calculated
The math behind a salary increase is straightforward but essential to understand for career planning. The raise calculator uses several standard formulas depending on which piece of information you have available.
Percentage-Based Formula
If you know the percentage increase, the formula is:
New Salary = Old Salary × (1 + (Raise Percentage / 100))
- Old Salary: Your pay before the raise.
- Raise Percentage: The growth rate (e.g., 5.0).
- New Salary: The final amount you will earn annually.
Calculation Example
Example: Imagine you currently earn $65,000 per year and your employer offers you a 4.5% merit raise. You are paid bi-weekly (26 times per year).
Step-by-step solution:
- Convert 4.5% to decimal: 4.5 / 100 = 0.045
- Calculate raise amount: $65,000 × 0.045 = $2,925
- Calculate new salary: $65,000 + $2,925 = $67,925
- Calculate raise per paycheck: $2,925 / 26 = $112.50
- Calculate new paycheck: $67,925 / 26 = $2,612.50
Using the raise calculator, you would see that your gross bi-weekly pay increases by $112.50.
Common Questions
What is a standard annual raise?
In the United States, a standard annual raise typically ranges between 3% and 5%. A 3% raise is often considered a "cost-of-living adjustment" (COLA), designed to keep up with inflation, while anything above that is usually considered a "merit raise" based on performance.
Does the calculator include taxes?
No, this raise calculator computes gross income. Your actual take-home pay will be lower after federal, state, and local taxes, as well as deductions for health insurance or retirement contributions (like a 401k). Keep in mind that a raise might slightly increase your effective tax rate if it pushes you into a higher tax bracket.
How do I calculate an hourly raise?
To use this tool for an hourly rate, you can enter your hourly rate as the "Current Salary" and select "Hourly" from the pay frequency. For example, if you earn $25.00/hour and get a $2.00 raise, the calculator will show you the annual equivalent (based on 2,080 work hours per year).
The Importance of Total Compensation
While the salary figure is the most visible part of a raise, don't forget to look at your total compensation package. Sometimes a smaller salary increase accompanied by a better bonus structure, increased 401(k) matching, or additional PTO can be more valuable than a higher percentage on your base pay alone.