Pay Raise Calculator - Salary and Hourly Increase

Use this pay raise calculator to estimate a salary increase or hourly wage increase. Enter the current pay, choose whether the raise is a percentage or a fixed amount, and the tool shows the new pay, raise amount, raise percentage, annual increase, and pay-period breakdown.

For salary workers, the calculator treats the input as annual gross pay. For hourly workers, it uses your hours per week and paid weeks per year to estimate the annual value of the raise. If you need to compare salary and hourly offers first, use the salary to hourly calculator or the hourly to salary calculator.

How to Use the Pay Raise Calculator

The calculator updates automatically as you type, so you can test different raise scenarios during an offer review, annual compensation planning, or a payroll budget check.

Pay Raise Formula

For a percentage raise:

Raise amount = Current pay x Raise percentage
New pay = Current pay + Raise amount

For a fixed raise amount:

Raise percentage = Raise amount / Current pay x 100
New pay = Current pay + Raise amount

For hourly raises, the annual increase is:

Annual increase = Hourly raise x Hours per week x Weeks per year

These are gross-pay formulas. Actual paycheck changes depend on tax withholding, benefit deductions, retirement contributions, overtime, bonuses, commissions, and payroll timing.

Salary Raise Example

The same formula works for a raise amount. If the company offers a $4,000 raise on an $80,000 salary, the raise percentage is 5% and the new salary is $84,000.

Hourly Raise Example

An hourly employee earns $20.00 per hour and gets a $2.50 per hour raise. If they work 35 hours per week for 50 paid weeks per year:

If the employee regularly works overtime, use the overtime calculator after estimating the new base hourly rate.

When to Use a Pay Raise Calculator

Small business owners can use the calculator to test raise budgets before payroll changes. Managers can compare percentage raises across employees with different pay levels. Employees can use it to understand an offer, promotion, or merit increase before deciding whether it meets their expectations.

It is also useful for equity checks. A flat dollar raise can produce different percentage increases for different employees, while a percentage raise can produce very different dollar increases. Looking at both numbers makes compensation decisions easier to explain.

What This Calculator Does Not Include

This calculator does not estimate net pay, tax brackets, payroll tax, benefit deductions, retirement contributions, shift premiums, commissions, bonuses, tips, or location-specific wage rules. It is a planning tool for gross pay changes.

For broader labor planning, pair it with the time card calculator, timesheet calculator, and employee turnover rate calculator.