How to Calculate a Pay Raise

Learn how to calculate percentage raises, flat raises, annual increases, and paycheck impact.

Open the Pay Raise Calculator

Percentage raise formula

Annual raise amount = current annual pay x raise percentage.

New annual pay = current annual pay + annual raise amount.

Flat raise formula

For a salary raise, add the flat annual amount to current annual pay.

For an hourly raise, annualize it by multiplying the hourly increase by expected hours per week and weeks worked per year.

Examples

Percentage raise example

  • Current salary: $60,000
  • Raise: 5%
  • $60,000 x 0.05 = $3,000 annual increase.
  • New annual pay = $63,000.

Hourly raise example

  • Current hourly pay: $24
  • Raise: $2 per hour
  • Schedule: 40 hours per week and 52 weeks per year
  • $2 x 40 x 52 = $4,160 annual increase.

Try it with your numbers

Use the calculator to check the examples against your own pay, hours, PTO, or raise assumptions.

Open the Pay Raise Calculator

Sources