Pay Raise Calculator

Got a pay rise on the table – or gearing up to ask for one? Our free pay raise calculator shows exactly what any percentage increase is worth in dollars, whether you are paid by the hour or on a salary. Enter your current pay and the raise percentage to see your new rate, plus the annual, monthly and per-pay-cheque value of the increase.

How the pay raise calculator works

The calculator turns a percentage into concrete dollar figures in four simple steps:

• Step 1: Enter your current pay – either your hourly rate or your annual salary using the toggle.
• Step 2: Enter the raise percentage you have been offered or hope to negotiate.
• Step 3: Choose your pay frequency so the calculator can show the raise per pay cheque.
• Step 4: Hit Calculate to see your new pay rate plus a full breakdown of the annual, monthly and per-period increase, with a bar chart comparing old and new annual pay.

Your last inputs are remembered on your device, and the Copy share link button creates a URL with your figures pre-filled – handy for sharing with a partner or adviser.

The pay raise formula

Behind the scenes the maths is simple. To find your new pay, multiply your current pay by one plus the raise as a decimal:

• New pay = Current pay x (1 + Raise % / 100)
• Raise amount = New pay – Current pay

Hourly rates are converted to annual figures using 2,080 working hours a year (40 hours x 52 weeks). For example, $30 an hour equals $62,400 a year. A 3% raise adds $0.90 an hour, which is $1,872 a year or $156 a month.

What is a good pay raise percentage?

Context matters more than the raw number:

• Keeping pace with inflation: With prices typically rising 2-3% a year, a raise below that means a real-terms pay cut.
• Merit raises: Most employers award 2-5% for solid performance in a typical year.
• Promotions: Moving up a grade often brings 8-15%, reflecting genuinely greater responsibility.
• Market adjustments: If your pay has fallen behind the going rate, 10% or more can be justified.

The number to watch is your real raise: the nominal raise minus inflation. A 5% nominal rise with 3% inflation is only a 2% real increase in buying power.

Worked example: a 4% raise on $30 an hour

Say you earn $30 an hour and are offered a 4% increase:

• Raise per hour: $30 x 0.04 = $1.20
• New hourly rate: $31.20
• Annual raise: $1.20 x 2,080 = $2,496
• Monthly raise: $2,496 / 12 = $208

Four percent sounded modest – but it is nearly $2,500 a year.

Pay raise FAQs

How do I calculate a pay raise percentage?

Divide the raise amount by your current pay and multiply by 100. For example, a $1.50 rise on $30 is ($1.50 / $30) x 100 = 5%.

How much is a 3% raise on $30 an hour?

A 3% raise on $30 is $0.90 an hour, taking you to $30.90. Over a full year that is $1,872 extra.

Is a 5% pay rise good?

Yes – 5% beats typical merit increases of 2-4% and comfortably outpaces inflation in most years, giving you a genuine real-terms gain.

How do I negotiate a higher raise?

Research market rates for your role, document your achievements, and anchor high. The calculator helps you translate any percentage into dollars so you know exactly what you are asking for.

Related salary calculators

• Hourly to Salary Converter – turn any hourly rate into annual, monthly and weekly pay.
• Overtime Pay Calculator – work out time-and-a-half and double-time earnings.

Got a raise? Run your extra take-home through our personal loan calculator to see how much interest a shorter loan term would save.