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Pay Raise Calculator

Work out the value of a pay raise in percentage and absolute terms, monthly and annually.

About Pay Raise Calculator

Period-on-period growth expresses the change in salary as a percentage of where it started, so a rise from 10 to 12 and from 100 to 120 both read as 20%. Growth rate is the headline number in every board pack and investor update, and it is the basis of the forecasts built on top of it.

Formula

Pay Raise

Growth % = (New salary − Current salary) ÷ Current salary × 100

Current salary
Value at the start of the period
New salary
Value at the end of the period

Worked example

With the default values below, Pay Raise Calculator returns Growth Rate of 7.69%. Change any input above and every figure here is recalculated in your browser.

Inputs used

Current salaryminimum 0
52,000
New salaryminimum 0
56,000

Results

Growth Rate
7.69%
Absolute Change
4,000.00
Growth Multiple
1.077
Direction
Growth of 7.69%

Step by step

  1. 1Values used
  2. 2Pay Raise
  3. 3Growth Rate= 7.69
  4. 4Absolute Change= 4,000.00
  5. 5Growth Multiple= 1.077
  6. 6Direction= Growth of 7.69%

Assumptions and limits

  • The result is derived only from the 2 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
  • Figures are rounded for display to 3 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

How is Pay Raise calculated?

Growth % = (New salary − Current salary) ÷ Current salary × 100 Period-on-period growth expresses the change in salary as a percentage of where it started, so a rise from 10 to 12 and from 100 to 120 both read as 20%.

Why does Pay Raise matter?

Growth rate is the headline number in every board pack and investor update, and it is the basis of the forecasts built on top of it.

What values do I need to enter?

This calculator takes 2 inputs: Current salary, New salary. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.

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