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Pay Raise Calculator

Use this pay raise calculator to compare salary or hourly wage before and after a raise.

Planning estimate

Live calculator

Pay raise

New annual pay$68,250.00

Current annualized pay is $65,000.00.

Annual raise$3,250.00

$125.00 more per biweekly paycheck before taxes.

Hourly equivalent$32.81

Useful for comparing salary and hourly offers.

Use this as a planning estimate. Taxes, fees, rates, account terms, provider policies, local rules, and timing can change real-world results.

Formula

Pay raise formula

New annual pay = annualized current pay + current pay x raise percent + extra annual amount

The calculator annualizes hourly pay using hours per week and 52 weeks.

How to use

Steps

  1. Choose annual salary or hourly wage.
  2. Enter current pay and the raise percent.
  3. Add any fixed annual raise amount if the offer includes one.
  4. Review annual pay, annual increase, biweekly increase, and hourly equivalent.

Example

Sample calculation

Current salary$65,000
Raise5%
New annual pay$68,250

Calculator use

Best for

  • Estimating pay, rates, PTO, overtime, raise impact, or contractor pricing before a work decision.
  • Comparing hourly, salary, day-rate, billable-hour, and pay-period assumptions in one visible calculation.

Before relying on it

Check first

  • Confusing gross pay, taxable pay, take-home pay, billable revenue, and employer cost.
  • Leaving out benefits, unpaid time, overtime eligibility, local taxes, payroll settings, expenses, or non-billable hours.
  • Using a planning estimate as an official payroll, tax, HR, or legal wage calculation.

Details

What to know before using the result

Scenario inputscurrent pay, raise percent, and additional annual amount

Keep current pay and raise percent aligned to the same scenario so new pay represents a consistent calculation.

Method checkPay raise formula

The tool applies New annual pay = annualized current pay + current pay x raise percent + extra annual amount to the entered values, then keeps new pay, examples, assumptions, and limits visible for review.

Source notes

References used for this calculator

U.S. Bureau of Labor StatisticsExplains how the Employment Cost Index measures changes in wages, salaries, and employer compensation over time.

Benchmarks

How to read the result

2% - 4%: Modest raise.

Often close to a cost-of-living or standard annual adjustment.

5% - 10%: Meaningful raise.

More noticeable in annual and paycheck planning.

10%+: Large move.

Usually tied to promotion, market adjustment, or job change.

Calculator accuracy

Methodology and assumptions

Formula, inputs, limitations and review record
Formula

New annual pay = annualized current pay + current pay x raise percent + extra annual amount

Inputs used

Current pay, Raise percent, Additional annual amount, Hours per week

Limitations

Money results are planning estimates. Actual taxes, account terms, rates, fees, timing, local rules, and provider policies can change the real-world result.

Review record

Catalog QA baseline on June 6, 2026. This date marks the catalog-wide automated and editorial QA baseline, not a tool-specific expert review.

Cite this page

Toolkit Shelf. Pay Raise Calculator. https://toolkitshelf.com/tools/pay-raise-calculator

FAQ

Common questions

How do I calculate a raise percentage?

Multiply current pay by the raise percent, then add that amount to current pay.

Can I use this for hourly pay?

Yes. Choose hourly wage and enter hours per week so the calculator can annualize the pay.

Is the paycheck increase after taxes?

No. The biweekly increase shown is before taxes and deductions.