Pay Raise Calculator
A pay raise expressed as a percentage can be hard to translate into a dollar figure, especially when you want to compare offers or check that an increase keeps pace with the cost of living. This calculator does it cleanly: your new salary equals your current salary multiplied by one plus the raise percentage. Enter your current salary and the percentage increase, and the tool returns your new salary along with the dollar amount of the raise. Seeing both the new total and the raise in dollars makes it easy to judge whether a percentage offer is meaningful and to compare it with a flat-dollar increase. The method works for any pay basis, annual, monthly or hourly, as long as the current figure and the percentage are entered on the same basis. The percentage is kept editable so you can model different scenarios, such as a 3 percent annual review versus a 10 percent promotion bump. This is a gross-pay calculation; taxes and deductions on the higher salary are handled separately, and the IRS governs the withholding on the additional wages. Every figure here is computed deterministically from the formula shown in full below, with a worked example that reconciles exactly to the calculator so you can follow each step.
A percentage raise multiplies your pay: new salary = old salary times (1 plus raise percent). A 4% raise on a $50,000 salary gives a new salary of $52,000.00, a 2,000.00 increase.
Pay Raise formula
New salary = Old salary x (1 + p)
Old salary = your current pay
p = raise percentage as a decimal (4% = 0.04)
Raise amount = New salary - Old salary
Multiplying by one plus the percentage adds the raise on top of the existing salary in a single step; the raise amount is simply the old salary times the percentage.
Worked example
Find the new salary after a 4% raise on a current salary of 50,000.
- Convert the percentage: 4% = 0.04
- Add one: 1 + 0.04 = 1.04
- Multiply: 50,000 x 1.04 = 52,000
- New salary = 52,000.00, raise amount = 52,000 - 50,000 = 2,000.00
These are the calculator's default inputs, so the result above matches the widget exactly.
Pay Raise Calculator: frequently asked questions
How do I calculate a percentage raise?
Multiply your current salary by one plus the raise percentage written as a decimal. A 4% raise multiplies by 1.04. The difference between the new and old salary is the raise in dollars.
Does a percentage raise keep up with inflation?
Only if the percentage matches or exceeds the inflation rate over the same period. Compare your raise percentage with the change in the Consumer Price Index to see whether your real, inflation-adjusted pay rose.
Can I use this for an hourly raise?
Yes. Enter your current hourly rate as the current salary and the percentage increase. The new figure is your new hourly rate; the method is identical for any pay basis.
Is the raise taxed at a higher rate?
Your overall income may move into a higher marginal bracket, but only the income above each threshold is taxed at the higher rate. The raise itself is taxed as ordinary wages.
What is the pay raise formula?
New salary equals old salary times one plus the raise percentage. A 4% raise on 50,000 gives 52,000.00.
Official sources
- US federal payroll, withholding and reimbursement guidance: US Internal Revenue Service (IRS). As at 25 June 2026.
Reviewed by the CalculatorHub team, edited by James Graham, 25 June 2026. See our methodology. This is general information, not financial, tax, legal or investment advice.