Pay Raise Calculator
Calculate your new salary after a percentage pay raise. Shows annual, monthly, weekly and hourly increase. Compare before and after salary side by side. Free salary increase calculator.
How to Use the Pay Raise Calculator
Enter your values above for an instant result. This tool uses verified formulas and is optimised for users in US, UK, AU, CA, NZ. All calculations happen in your browser — your data is never sent to our servers.
Frequently Asked Questions
How do I calculate a percentage pay raise?
New salary = Current salary × (1 + raise% / 100). Example: $60,000 × 1.05 = $63,000 for a 5% raise. The raise amount = Current salary × (raise% / 100) = $60,000 × 0.05 = $3,000. Monthly increase = $3,000 / 12 = $250/month. Use this calculator to see the full breakdown including weekly and hourly increases.
What is a good pay raise percentage?
In 2025, average pay raises in the US, UK, and Australia range from 3% to 5%, roughly tracking inflation. A raise below inflation is effectively a real pay cut in purchasing power terms. Industry-specific raises vary widely — technology and healthcare workers often see 5-10% raises in competitive markets, while public sector workers may be capped at 2-3% by government pay policies. A raise of 10%+ typically reflects a promotion or significant role change.
How do I negotiate a pay raise?
Research your market rate using salary surveys (Seek, LinkedIn Salary, Glassdoor, SEEK, Payscale). Calculate the percentage difference between your current salary and the market rate. Document concrete achievements and quantified results from the past 12 months. Request a meeting with your manager specifically to discuss compensation rather than raising it informally. State a specific number based on your research rather than asking what the company can offer.
Does a pay raise affect my tax bracket?
A pay raise may push some of your income into a higher tax bracket, but only the income above the bracket threshold is taxed at the higher rate. If a $5,000 raise moves $2,000 of your income into the next bracket, only that $2,000 faces the higher marginal rate. Run your new salary through the income tax calculator to see the exact after-tax impact of your raise.
What is the difference between a pay rise and a cost of living adjustment?
A cost of living adjustment (COLA) is designed to maintain purchasing power by matching wage increases to inflation — it is not a real increase in buying power. A merit pay raise above inflation represents actual compensation growth. If inflation is 4% and your raise is 4%, your real wages are flat. Only raises above the inflation rate represent genuine improvement in living standards.